Sales Tax re-adjustment valid from January 1st 2021

FAQ

• I placed my order before 01/01/2021, but it won’t arrive until after 01/01/2021. Does that mean I have to pay more because the sales tax is going up?

  • No; if you placed your order before 01/01/2021, you pay the total as stated on your order confirmation. The net price of your order is adjusted to make sure the gross price remains the same despite the VAT increase to 19%. Orders with JobRad as the payment method are an exception.

• Exception for orders with JobRad payment (and businesses/employers eligible for input tax deduction):

  • Even if you pay via JobRad (and your employer is eligible for input tax deduction), you are guaranteed the contractually agreed leasing rate. The vast majority of employers in Germany are eligible for input tax deduction (i.e., they post sales tax on their invoices) – this probably includes your employer. In that case, the sales tax amount does not affect your JobRad payments: They are based on the net price, which remains the same. Note that if you place your order in 2020 but it is delivered in 2021, the gross total will be higher. Why? As a company, we are obligated to state the applicable sales tax. But don’t worry, this does not mean you have to pay more. Only the net total, which remains unchanged, is relevant for you.

• Exception for orders with JobRad payment (and businesses/employers NOT eligible for input tax deduction):

  • Some employers in Germany are NOT eligible for input tax deduction (meaning they do not post sales tax on their invoices), which may include your employer. In this case, the sales tax rate has a small effect on your JobRad payments. How much higher will your payments be in 2021? You can find out easily using the JobRad calculator . To do so, simply switch to extended mode and answer “no” to the question “is your employer eligible for input tax deduction?”.

• Why does the website still show the same price for the bike I purchased with JobRad as before 01/01/2021, while my updated order confirmation now shows a higher total?

  • We assure you that you still only pay the net price you were originally offered. The leasing payments are based on the net price of the goods, which does not include sales tax. This means that a change in sales tax does not affect the leasing payments for companies eligible for input tax deduction. Prices including sales tax are gross prices, which are shown on our website and on the order confirmation. Since we want the actual price to be the same as contractually agreed, we increase the gross price on your order, so that the net price stays the same as before.