ᐅ Reduced value-added tax until the end of 2020. How to proceed with invoices?
Created on: 4 Jun 2020 10:23
A
annab377
Hello everyone,
The coalition government reduced the VAT from 19% to 16% from July 1, 2020, to December 31, 2020. This should also be interesting for homeowners.
However, I have some questions about how this works in practice. Does this only apply to invoices issued by the end of the year? Or do the payments also have to be made by then?
Is it possible to arrange with contractors to issue the invoice in December 2020, but I pay only in February after the work is completed? In that case, do I still pay the reduced VAT rate, or is the invoice amount 3% too low and I have to pay the difference in February?
What do you think?
Best regards
The coalition government reduced the VAT from 19% to 16% from July 1, 2020, to December 31, 2020. This should also be interesting for homeowners.
However, I have some questions about how this works in practice. Does this only apply to invoices issued by the end of the year? Or do the payments also have to be made by then?
Is it possible to arrange with contractors to issue the invoice in December 2020, but I pay only in February after the work is completed? In that case, do I still pay the reduced VAT rate, or is the invoice amount 3% too low and I have to pay the difference in February?
What do you think?
Best regards
OWLer schrieb:
I am supposed to pay 12% upon completion of the basement slab, 12% upon completion of the basement level, and 22% upon completion of the shell structure.
All this is supposed to happen at the specified time. It should all be clearly finalized and separable. Just my layperson’s opinion...? I don’t think it will work that way. Or did you sign a separate contract for each stage of construction progress?
I’m guessing that most contracts here are concluded according to the building code and are therefore contracts for work. In that case, I would say that payment becomes due upon final acceptance, which is the decisive point.
However, there are indeed quite extensive regulations regarding intermediate acceptance, etc. So this is just a guess.
VAT is due on delivery and/or service. The delivery must have been made, and the service provided. For example, service provided in June, invoice issued in July, 19%. Service provided or goods delivered in December, invoice in the same month 16%, invoice in January also 16%.
This will all become clear, so please be a bit patient. The ink isn’t even dry yet; the parliament/council still has to review it...
In any case, the mid-year, very short-term change of VAT rates and the reversal after 6 months is a nightmare from a technical perspective!
Accountants and tax auditors will also be dealing with this for years to come.
In any case, the mid-year, very short-term change of VAT rates and the reversal after 6 months is a nightmare from a technical perspective!
Accountants and tax auditors will also be dealing with this for years to come.
because I didn’t see the thread in the subforum "Building Plots / Contracts / Building Law Tips / Official Matters". Where is the third one?
annab377 schrieb:
because I didn’t see the thread in the subforum "Building Land / Contracts / Building Law Tips / Official". Where is the third one? Under "Construction Costs / Subsidies"...
https://www.hausbau-forum.de/threads/temporaere-MwSt-Senkung-um-3-bis-31-12-2020.35215/page-4