Reduction of the Value Added Tax in Germany – This is What You Need to Know
Summary: For the period from July 1 to December 31, 2020, the Value-Added Tax in Germany is reduced from 19 % to 16 %. We at Boxcryptor will donate the amount saved.
On 12 June 2020, an economic stimulus package worth billions of euros was presented, with which the Federal Government intends to boost the weakened German economy. This is intended to mitigate the negative economic impact of the Corona crisis. An important component of this package is a sales tax reduction. This measure is intended to ease the burden on consumers and the retail trade.
We welcome this measure, but as a medium-sized software company we do not see ourselves as the focus. Our billing systems are not designed to account for short-term changes. For this reason, we have decided to donate the additional revenue every month.
Background information: Our pricing information on the website is designed to ensure that licenses aimed at companies are priced at net prices. The licenses we sell to private individuals are marked with gross prices. The VAT for individuals is only shown during the purchase process when it is clear in which country the software will be invoiced for the purchase.
Why does Boxcryptor not pass the savings on to customers?
For us as an internationally operating company, the reduction in VAT only affects a small proportion of our customers, i.e. private users of our encryption software resident in Germany. A price conversion for such a small group would be a disproportionate effort for us. In addition, we offer our software as a subscription, so payment per license is due either annually or every three years. Passing on savings fairly to everyone who took out a subscription is not possible with a price change that only lasts for 6 months.
Lastly, the amount of reduction we could pass on to our users is also a factor for us. Using our most popular license Boxcryptor Personal with an annual cost of 36.00 € as an example, the price reduction would be 0.78 €. We therefore take the liberty of maintaining the prices.
What does Boxcryptor do with the additional revenue?
So in the next 6 months we will pay a little less VAT to the tax office. The difference (e.g. 0.78 € for the sale of each Boxcryptor Personal license) will be calculated monthly and rounded up. The accumulated sum will be donated. We will select organizations that are involved in the management of the Corona crisis in Germany.
If you would like to suggest an organization that helps deal with the effects of the Corona crisis in Germany, please contact us by sending an e-mail to firstname.lastname@example.org.
Donation 1: Stiftung Bildung
The additional income from the month of July goes to the Stiftung Bildung. We are pleased to transfer 2000,00 € to the charitable institution.
The Stiftung Bildung supports kindergarten and school development associations throughout Germany with a Corona protective screen. The purpose of the foundation is to provide good educational opportunities for children and young people who live in challenging circumstances. Find out more about the measures supported by the foundation here.
Donation 2: Tür an Tür
The additional income from the month of July goes to “Tür an Tür”. We are pleased to transfer 2000,00 € to the charitable institution.
“Tür an Tür – miteinander wohnen und leben e.V.” campaigns for the strengthening of rights and chances of immigrants since 1992. The association, which is based in Augsburg, Bavaria, offers migration counseling, trainings, and provides networking services. Inform yourself here about the work of “Tür an Tür”.
Donate now as well
Thank you for reading this article until the end and for your interest in which organisation receives our donation. We encourage you to join us and make a donation as well. The link will take you directly to the donation page of “Tür an Tür”.