As a result of the decision of the grand coalition on June 3, 2020, the value-added tax in Germany was reduced from 19 percent to 16 percent as of July 1, 2020, under the Corona Tax Relief Act. The reduced tax rate was only 5% instead of 7% . This measure ended on 31.12.2020.
Further, the VAT on restaurant and catering services was reduced from the full to the reduced VAT rate. This measure ends after extension on 31.12.2023.
What this means for your travel expense report is that by Dec. 31, 2023, you will receive receipts for entertainment with an amount for beverages and an amount for meals – each with different VAT rates.
The situation with hotel receipts is analogous: the amount for breakfast can no longer be covered with a field that breakfast consists of a meal with drinks.
Thus, the temporary reduction in the sales tax through the stimulus package with the Second Corona Tax Relief Act has necessitated quick adjustments. The Spesenfuchs team has taken care to ensure that you can continue to enter your receipts correctly and report your travel expenses properly.
The changes in detail:
- Hospitality receipts will have a second field for an additional amount for beverages if the hospitality is for the period 7/1/2020 – 12/31/2023 in Germany. This way, you can continue to enter hospitality in one step and not have to split the receipt. The reduced VAT rate valid on the voucher date is offered in the field for the meal, and the full VAT rate valid on the voucher date is preset in the field for the beverages.
- Spesenfuchs also offers a third field for beverages in hotel receipts, even in the case of an overnight stay in Germany with breakfast in the period 7/1/2020 – 12/31/2023. So, even in the case of a hotel stay with breakfast, you do not need to make a split of receipts for drinks and breakfast, but you can specify all data in one receipt.
In the reports, all data are output correctly accordingly.