In some industries, it is typical or at least not unusual that services are rendered over an annual term and across periods. In particular, maintenance and service contracts, telecommunication contracts, subscriptions to magazines and newspapers, Half-Fare/GA and other transport services are often concluded for a period of one year and invoiced in advance. If a corresponding annual contract is concluded as of 1 February 2023, for example, the invoice must split the consideration between the supply period before and after 1 January 2024 and show the applicable VAT rates accordingly. Otherwise, the taxable business must account for VAT on the total supply at the higher VAT rate (para. 2.1 of the draft VAT Info 19 "VAT rate increase as of 1 January 2024" of 12 December 2022).
For other cross-period supplies (without an annual term) such as (opted) rents, construction services, ski season tickets, etc., the requirement of supplies being split by period will also arise sooner or later in 2023. If it is not clear from the invoice when and to what extent supplies were rendered and what portion of the remuneration is attributable to the respective supplies, the total consideration is subject to the higher VAT rate according to the draft of the practice adjustment of the VAT Law dated 12 December 2022.