I don't want to be taxed until I actually have the money in the cash register. How do I go about it?

There is the so-called target and actual taxation. With ready2order, target taxation is preset, but you can change the settings at any time and use actual taxation.

In Germany and Austria, actual and estimated taxation are tied to certain sales/profit limits and must sometimes be applied for at the tax office.

What does target taxation mean?

With target taxation, the invoice date is decisive and not when the customer actually pays.

  • With target taxation, sales tax is due when the invoice is issued.

Example:

Company A repairs the computers of Company B. He begins the work in January 2015 and finishes it in February 2015. The invoice is issued in March 2015. The tax liability arises in March 2015. The turnover is to be included in the March 2015 VAT return, and the tax is due on May 15, 2015.

If the invoice were not issued until April 2015, the tax liability would still arise in March 2015.

What does actual taxation mean?

Actual taxation means that sales tax is paid when the customer actually pays and not when the invoice is issued.

  • With actual taxation, sales tax is only due when the money is received.

Example

On January 15, you send your customer an invoice for €10,000 plus €1,900 VAT. If you are a taxpayer, you must report and pay the €1,900 to the tax office when you submit your VAT return on February 10.

Unfortunately, the customer will not pay you until May, which means you have to pay the €1,900 four months in advance. If you were to use actual taxation, you would only have to pay the €1,900 when you submit your VAT return on June 10th, which can make a big difference, especially if you have a lot of outstanding invoices.

Please note that the turnover does not change even if you are the actual taxpayer, since only the sales tax is decisive here.
  • Actual taxation is generally cheaper because you do not have to pay the VAT directly, but only when the invoice is actually invoiced, and therefore the VAT on the open invoices is not paid when they are created (partial payments must also be taxed when they have been received, but only to the amount paid)

How do I switch from target to actual taxation?

To make the target and actual taxation settings, proceed as follows:

  1. Click on Preferences
  2. Click on Basic settings
  3. Under Taxation, select either Target or Actual Taxpayer
  4. Click Save
Please note that as an actual taxpayer you have to change the price basis to net . You can also do this under Preferences > Basic settings > General under Price basis.

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