Information on the VAT adjustment in Germany as of 01-JAN-2021

Payment API

Changes can be send to Ratepay by using Payment Change - Change Order.

Basically there are two options:

  1. The net price will be reduced so that gross price will be the same after increased VAT. (preferred option)

  2. The net price will be the same and gross price increases through increased VAT.

a) Same gross price

The VAT can be changed with Confirmation Deliver (CD) as long as gross price is the same as in Payment Request (PR).

Example

Purchase in 2020 - Shipment in 2021

Payment Request in 2020

Payment Change

Change Order

Confirm Delivery in 2021

Net

100 EUR

97,48 EUR

97,48 EUR

VAT

16%

19%

19%

Gross

116 EUR

116 EUR

116 EUR

b) Increased gross price

The transaction can be adjusted by using the Payment Change - Change Order prior shipping (Confirmation Delivery - CD). You need to adjust the gross price and the VAT.

Example

Purchase in 2020 - Shipment in 2021

Payment Request in 2020

Payment Change

Change Order

Confirm Delivery in 2021

Net

100 EUR

100 EUR

100 EUR

VAT

16%

19%

19%

Gross

116 EUR

119 EUR

119 EUR

Tip: To pass on the price reduction to the buyer, you can send a Payment Change - Credit to Ratepay. The credit will be refunded to the buyer.

ORCA

Are you not able to use "Payment Change - Change Order", you do have the possibility to submit your changes in ORCA. ORCA is using Payment Change with help of a cancellation of a transaction followed by adding the items again with new prices.

Basically there are two options:

  1. The net price will be reduced so that gross price will be the same after increased VAT. (preferred option)

  2. The net price will be the same and gross price increases through increased VAT.

Once a transaction was modified via ORCA, it's getting blocked for updates via API. So all further changes related to that particular transactions must be also done with ORCA.

When using ORCA, your own systems (e.g. your ERP) are not affected by these changes. Relevant information are not passed further.

a) Same gross price

The transaction can be adjusted by using the functions Cancel and Add new item prior shipping (Deliver). In order to do this you need to cancel the item(s) and add the new item(s) with the adjusted net price and the VAT rate.

Purchase in 2020

Cancel

Add new article

Deliver in 2021

Net

100 EUR

100 EUR

97,48 EUR

97,48 EUR

VAT

16%

16%

19%

19%

Gross

116 EUR

116 EUR

116 EUR

116 EUR

b) Increased gross price

The transaction can be adjusted by using the functions Cancel and Add new item prior shipping (Deliver). In order to do this you need to cancel the item(s) and add the new item(s) with the adjusted gross price and the VAT rate.

Purchase in 2020

Cancel

Add new article

Deliver in 2021

Net

100 EUR

100 EUR

100 EUR

100 EUR

VAT

16%

16%

19%

19%

Gross

116 EUR

116 EUR

119 EUR

119 EUR

Tip: To pass on the price reduction to the shopper, you can create a discount.

Partial Delivery

You do have the following options to send transactions purchased in 2020 and shipped both in 2020 and 2021.

Important: Gross price in 2020 must match gross price in 2021 in order to process the transaction.

Example

Purchase in 2020

  • item 1 = Net = 200 EUR, VAT = 16%, Gross = 232 EUR → Shipping in 2020

  • item 2 = Net = 100 EUR, VAT = 16%, Gross = 116 EUR → Shipping in 2021

a) Same gross price - with updated VAT and Net price in 2021

Purchase in 2020

Ship item 1

in 2020

Payment Change

Change Order

Ship item 2

in 2021

Item 1 Net

200 EUR

200 EUR

Item 1 VAT

16%

16%

Item 1 Gross

232 EUR

232 EUR

Item 2 Net

100 EUR

97,48 EUR

97,48 EUR

Item 2 VAT

16%

19%

19%

Item 2 Gross

116 EUR

116 EUR

116 EUR

  • Shipping item 1 in 2020: Net price = 200 EUR, VAT = 16%, Gross price = 232 EUR → nothing changes

  • Shipping item 2 in 2021: Net price = 97,48 EUR, VAT = 19%, Gross price = 116 EUR → both net price and VAT changes. Gross price stays the same.

b) Increased gross price - with discount afterwards in January

Purchase

in 2020

Ship item 1 in 2020

Payment Change

Change Order

Ship item 2

in 2021

Item 1

Net

200 EUR

200 EUR

Item 1

VAT

16%

16%

Item 1

Gross

232 EUR

232 EUR

Item 2

Net

100 EUR

100 EUR

100 EUR

Item 2

VAT

16%

19%

19%

Item 2

Gross

116 EUR

119 EUR

119 EUR

  • Shipping item 1 in 2020: Net price = 200 EUR, VAT = 16%, Gross price = 232 EUR→ nothing changes

  • Shipping item 2 in 2021: Net price = 100 EUR, VAT = 19%, Gross price: 119 EUR→ both gross price and VAT changes. Net price stays the same.

Tip: To pass on the price reduction to the shopper, you can send a Payment Change - Credit to Ratepay.