Questions & Answers
Answers to common questions.
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How high was the Corona consulting subsidy and who was eligible to apply?
SMEs and freelancers affected by the Corona crisis were able to receive a subsidy covering 100% of the invoiced consulting costs, capped at EUR 4,000, with no own contribution required. The subsidy was paid directly into the consultant's account.
As of: March 2020
How is the Corona emergency aid treated for tax purposes?
The Corona emergency aid must be reported as operating income for income tax purposes in your 2020 tax return. No VAT is due, as there is no exchange of services and the subsidy is therefore not subject to VAT.
As of: May 2020
How can BEW Bocholt be contacted to apply for a reduction in advance payments?
Bocholt Energie- und Wasserversorgung can be reached by phone at 0800 9549540 or by email at info@bew-bocholt.de. Further information is available at www.bew-bocholt.de. Applications submitted after 25 March should be coordinated directly with BEW.
As of: March 2020
How can employees with tax class V or VI obtain the increased benefit rate?
They need a certificate from the Agentur für Arbeit, which can be requested informally by either the employer or the employee. For tax class V, an extract from the spouse's electronic Lohnsteuerkarte showing the child allowance must be attached; for tax class VI, an extract showing tax class I, II, III, or IV is required. If short-time work compensation is mistakenly calculated at only 60 percent, this cannot be corrected retroactively.
As of: March 2020
How can employers avoid the risk of losing reimbursement?
Employers should review their employment contracts to check whether § 616 BGB has been expressly excluded. If the provision is not excluded, contracts should be amended accordingly so that the reimbursement claim under § 56 IfSG remains intact in the event of quarantine or closure. This helps avoid the financial burden of continued wage payments without reimbursement.
As of: November 2020
How can retailers in Bocholt reduce their energy advance payments during the coronavirus crisis?
Bocholt Energie- und Wasserversorgung (BEW) allowed retailers to lower their monthly advance payments for business premises by 50% starting 1 April 2020. This required a formal application submitted to BEW. To reduce the April installment, the application had to be received by 25 March.
As of: March 2020
How can single-purpose vouchers be used to lock in the reduced VAT rate?
With a single-purpose voucher, the place of supply and the applicable VAT rate are already determined at the time of issue, so VAT becomes chargeable upon issuance. If such a voucher is issued by 31 December 2020, 16% VAT applies—even if the underlying service is rendered in 2021. For single-purpose vouchers issued before 1 July 2020 at 19%, a reversal with cash refund is recommended.
As of: July 2020
How can annual bonuses for 2020 be settled in a simplified manner under the VAT rate reduction?
For simplification, an annual rebate for 2020 may be allocated on a flat-rate basis: 50% at 19% or 7% (January to June) and 50% at 16% or 5% (July to December), irrespective of the actual time of turnover. Alternatively, the entrepreneur may apply 19% to the entire annual bonus without exception.
As of: July 2020
How long does the reduced VAT rate of 7% on restaurant meals apply?
The reduction of the VAT rate to 7% on food served in the hospitality sector is limited until 30 June 2021. From 1 July 2021, the regular tax rate will generally apply again. The time limit was deliberately chosen, as the measure is intended as a temporary stimulus following the coronavirus crisis.
As of: May 2020
How long does the reduced VAT rate of 7% on restaurant meals apply?
The reduced VAT rate of 7% on food served in the restaurant sector is limited to the period from 1 July 2020 to 30 June 2021. It is intended as start-up support for the post-crisis period, enabling restaurant businesses to quickly return to operating on their own again.
As of: May 2020
How long must records on the use of Corona emergency aid be retained?
All records substantiating the use of the emergency aid must be retained for 10 years. The proof itself is provided via an official form, which recipients will receive in good time together with completion instructions.
As of: May 2020
How does KfW's risk assessment work depending on loan size?
For loans up to EUR 3 million, KfW's risk assessment is waived entirely and handled by the financing partner. For amounts above EUR 3 million up to EUR 10 million, a simplified fast-track review is performed, limited to a rating. For loans exceeding EUR 10 million, an extended risk assessment with more detailed documentation applies.
As of: March 2020
How are employees converted into full-time equivalents for the Corona emergency aid?
The reference date is 31 December 2019. Employees working up to 20 hours count with a factor of 0.5, up to 30 hours with 0.75, over 30 hours and apprentices with 1.0, and 450-euro workers with 0.3. The entrepreneur as well as employees on parental leave or maternity protection are included; the decisive factor is an active employment contract on the reference date.
As of: March 2020
How are revenues from delivery services and takeaway sales offset against the November Aid (Novemberhilfe)?
November revenues are not offset up to 25% of the comparison revenue; beyond that, they are credited to avoid overcompensation exceeding 100%. For restaurants, reimbursement is capped at 75% of revenues subject to the full VAT rate from the 2019 comparison period, so that takeaway sales at the reduced VAT rate are excluded. In return, takeaway revenues during the closure period are not offset.
As of: November 2020
How are one-off high incoming payments treated during the funding period?
One-off high incoming payments that relate to an entire previous year may be recognized on a pro rata basis. This applies, for example, to GEMA payments to artists or VG Wort payments to journalists, which would otherwise have flowed disproportionately into the funding period.
As of: August 2020
How are deferred rent, lease or leasing payments accounted for in the proof of use?
Deferred payments such as rent, lease or leasing instalments that would have been due within the funding period can now also be taken into account. This ensures that companies which proactively negotiated deferrals are not disadvantaged compared to others.
As of: August 2020
How is the maximum financing volume of the KfW Corona aid determined?
The eligible funding or financing volume is based on the highest of the following three criteria: a maximum of 25% of 2019 annual turnover, twice the 2019 payroll costs, or the current financing requirement for the next 18 months at most. The highest of these figures forms the upper limit of the loan.
As of: March 2020
How is the November aid calculated and what special rule applies to restaurants?
The November aid provides 75% of the average weekly turnover from November 2019 per week of closure, capped at EUR 1 million (higher amounts require EU approval). For restaurants, reimbursement is limited to turnover at the full VAT rate (dine-in); in return, take-away sales are not counted against the subsidy. Other state benefits such as Überbrückungshilfe (bridging aid) or Kurzarbeitergeld (short-time work allowance) are offset against the aid.
As of: November 2020
How was short-time work allowance (Kurzarbeitergeld) increased in stages from 22 April 2020?
If working hours are reduced by at least 50 percent, the short-time work allowance for employees without children rises to 70 percent of the lost net wage from the 4th month of receipt and to 80 percent from the 7th month. For employees with children, the benefit increases to 77 percent from the 4th month and 87 percent from the 7th month. These increases applied until 31 December 2020 at the latest.
As of: March 2020
How was the tax loss carryback expanded in the economic stimulus package?
The tax loss carryback is statutorily expanded for 2020 and 2021 to a maximum of EUR 5 million, or EUR 10 million for joint assessment. In addition, a flat-rate loss carryback from 2020 to 2019 is permitted: 15% of the balance of the relevant business income or income from rental and leasing that formed the basis for the 2019 advance tax payments, capped at EUR 1 million (or EUR 2 million for joint assessment).
As of: June 2020
Is the BAFA Corona consulting cost subsidy still being granted?
No, the special Corona consulting cost subsidy was suspended as of 15 May 2020. BAFA has instructed the DIHK coordination office to stop issuing the preliminary approval statements required for engagement and billing. The reasons were the unexpectedly high volume of applications and increased susceptibility to fraud.
As of: March 2020
Is the BAFA consulting subsidy for businesses affected by Corona still available?
No, the special Corona consulting subsidy from BAFA was discontinued early. The funding pool was fully exhausted after less than two months of program runtime, and no further funds will be made available for this module.
As of: June 2020
Is the obligation to file for insolvency suspended due to the coronavirus crisis?
Yes, the Federal Ministry of Justice and Consumer Protection is preparing legislation to suspend the obligation to file for insolvency until 30 September 2020. The aim is to protect companies that have run into financial difficulties as a result of the coronavirus pandemic.
As of: March 2020
Where can Bocholt-based companies find consolidated information on Corona-related economic aid?
The Wirtschaftsförderung Borken (WFG) provides detailed information on support measures and programs for businesses during the Corona crisis. In addition, the City of Bocholt offers a dedicated section on its website covering business topics during the Corona crisis.
As of: March 2020
Where must the application for NRW emergency aid be submitted to avoid fraud?
Applications may only be submitted via the official website of the NRW state government at soforthilfe-corona.nrw.de. Fraudulent websites with replicated application forms had been used to harvest data for criminal purposes, which is why payouts were temporarily suspended. Applicants should review search results critically and use only the official URL.
As of: March 2020
What may the Corona emergency aid be used for?
The Corona emergency aid may only be used to cover operating costs and liabilities, such as bank loans, leasing instalments, business rent or supplier claims. It is intended to bridge liquidity shortfalls that have arisen since 1 March 2020 in connection with the COVID-19 pandemic. Economic difficulties that already existed before this cut-off date are not covered.
As of: May 2020
What should you watch out for regarding phishing emails related to Corona aid?
In connection with applying for and repaying Corona aid, digital fraud attempts are on the rise. Official emails concerning NRW emergency aid are sent exclusively from noreply@soforthilfe-corona.nrw.de. Recipients should always verify the sender address and, when in doubt, consult their Steuerberater (German Certified Tax Advisor) before clicking links or submitting data.
As of: November 2020
How do partial services and advance payments differ for VAT purposes?
Partial services only exist for economically separable services with a corresponding agreement, separate acceptance, and separate invoicing. In this case, the VAT rate applicable at the time of acceptance of the individual partial service applies. For advance payments, by contrast, the VAT rate at the time of acceptance of the entire completed work is decisive.
As of: July 2020
What was the purpose of the original reporting procedure for Corona emergency aid in NRW?
The reporting procedure was intended to determine the company's actual liquidity shortfall during the funding period. Based on this, any repayment amount for the Corona emergency aid received would have been calculated. The self-declaration was submitted via a digital form.
As of: July 2020
Has the feedback procedure for the NRW Corona emergency aid been suspended?
Yes, the state of North Rhine-Westphalia suspended the feedback procedure for the Corona emergency aid as of 14 July 2020. The reason is that some accounting requirements have proven problematic. The procedure will be paused until a nationwide clarification is reached.
As of: July 2020