Can tax rates be adjusted during the year?

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Manual adjustments by Merchant Backend users

Changes to tax rates can:

  • be directly valid (standard)

  • receive a validity in the future (optional)

In the standard system, the change to a tax rate takes effect immediately. The tax rate is therefore used by the system to calculate the tax when it is saved. Both existing and future subscriptions are affected. 


Adjustments by Frisbii Media

The adjustment of tax rates can also be carried out by Frisbii Media. 

In the event of major tax changes, we usually inform you of the changes a few weeks before they come into force. 


Effects on subscriptions with long accounting periods

If an accounting period falls within the validity of two different tax rates due to its length, the end of the service provision is decisive for the calculation of the tax. 

  • The tax rate applicable at the end (on the last day) of the relevant accounting period is decisive

  • It is not possible to generate two invoices with different accounting periods and tax rates for such a period

Examples

Assumption: A tax rate of 7% applies in 2022. From 01.01.2023, this tax rate will be increased to 9%.

On 01.06.2022, customer A purchases a subscription with an accounting period of 6 months. The subscription will therefore be extended for the first time on 01.12.2022

  • A tax of 7% applies for the accounting period 01.06.2022 to 30.11.2022 

  • For the accounting period 01.12.2022 to 31.05.2023 a tax of 9% applies 

On 01.08.2022, customer B purchases a subscription with   an accounting period of 6 months. The subscription is therefore extended for the first time to 01.02.2023

  • For the accounting period 01.08.2022 to 31.01.2023, a tax of already 9% applies 

  • For the accounting period 01.02.2023 to 31.07.2023, a tax of 9% still applies