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
Nordlys schrieb:
VAT is due on delivery and/or service. The delivery must have taken place, and the service performed. So, if the service was performed in June and the invoice issued in July, 19%. Service performed or goods delivered in December, invoice the same month 16%, invoice in January also 16%. How does it work with larger purchases like a kitchen or a new house? If you buy a kitchen/house in July at 16% and receive it/built next year, is it still 16% or is there a price adjustment?
Icebär7 schrieb:
How does it work with major purchases like a kitchen or a new house? If you bought the kitchen/house in July with 16% VAT, but it’s delivered/built next year, is it still 16% or is there a price adjustment? What exactly do you mean by "bought the house"? Did you really buy the finished house? Then it might be 16%, provided the transaction was completed in 2020.
If you mean you signed a contract with the general contractor and the construction takes place in 2021, then it’s 19%. If parts are completed and invoiced in 2020, those parts could be taxed at 16%, as long as the tax office agrees (this special case is discussed in another thread).
Another example is the kitchen. Quote and contract signed in July 2020, delivery in May 2021. The quote will show 16%, but you will pay 19% in May 2021.
Private customers always pay the net price plus the VAT rate applicable at the time of delivery or service!
guckuck2 schrieb:
What does "house bought" mean exactly? Really buying the finished house? Then possibly 16% VAT, if completion was in 2020.
If you mean "contract signed with the general contractor" but the house construction takes place in 2021, then 19%. If parts are completed and invoiced in 2020, then 16% applies to those parts, provided the tax office agrees (this special case is discussed in another thread).
Another example, the kitchen. Offer and signature in July 2020, delivery in May 2021. The offer will state 16%, but you will have to pay 19% in May 2021.
When buying privately, you always pay the net product value plus the VAT rate valid at the time of delivery or service! So if I ordered and paid a deposit for a kitchen in May (with 19% VAT on the offer, but delivery is in October), is it possible that in the end we only have to pay 16% VAT?
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