Gesall TVA

Gesall adapts to changes in VAT rates

Author: Yann Roll - The Dots
05/12/2022
ICT solutions
Following the signing of a tripartite agreement on September 28, VAT rates will be reduced by 1% from January 1, 2023, until December 31, 2023. This measure, part of the government’s strategy to combat inflation and strengthen household purchasing power, will require a certain degree of flexibility from businesses. The two simplified accounting software solutions, Gesall and Gesall.NET, will enable companies to easily adapt to these changes in VAT rates.

 

The new VAT rates

This reduction will apply to the current standard, intermediate, and reduced rates. Only the super-reduced rate of 3% will remain unaffected by the government directive.

  • The standard rate, applicable to most everyday goods and services, will decrease from 17% to 16%.
  • The intermediate rate, applied to products such as cleaning supplies and laundry items, will drop from 14% to 13%.
  • The reduced rate, applicable to gas and electricity, will fall from 8% to 7%.

Both households and businesses will benefit from this measure, which aims to ease expenses while maintaining economic activity.

 

How Gesall will handle these changes

Starting January 1, Gesall and Gesall.NET will be fully updated and ready for use. The software easily adapts to Luxembourgish and European legal and regulatory changes, as well as to the latest technological updates. As a result, the programs will automatically integrate the new VAT rates, so users will not need to take any action. Previous rates will be retained, while the new ones will be added automatically. Users won’t have to change their habits, and historical data will be preserved. All tax declarations—monthly, quarterly, or annual—will reflect the new rates.

Gesall.NET supports an unlimited number of VAT codes, unlike the original Gesall software, which has a limited number of codes. Companies will therefore need to choose the software that best fits their needs.

"The program ensures easy execution thanks to automated VAT, but the impact on your tax declarations can be significant. We therefore recommend not overlooking the need for knowledge and expertise on the subject," explains Benjamin Dempt, Accounting Advisor & Customer Care at Proximus NXT.

Throughout this change, clients will have access to all necessary documentation for updating the program. If difficulties arise, support is available to resolve issues and answer questions.