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
kati1337 schrieb:
So if I order and pay a kitchen deposit in May (with 19% VAT on the quote, but it will be delivered in October), is it possible that in the end we only have to pay 16% VAT?yesH
HilfeHilfe5 Jun 2020 12:10annab377 schrieb:
That will be the case. However, I, who ordered the kitchen between July and December 2020 and will have it installed only in 2021, will have to pay the 19%.
According to what has been said here in the forum, this was apparently also the case during the last similar tax reduction.And what if an advance invoice is requested??Y
yellow_ms5 Jun 2020 12:46An advance invoice would be at most a deposit and does not solve the problem. No invoice without service delivery.
S
saralina875 Jun 2020 12:52yellow_ms schrieb:
A preliminary invoice would be at most a deposit, and that does not solve the problem. No invoice without service provision.That is not correct. Value added tax arises upon receipt of a deposit, but there is no obligation to issue an invoice at that point.
Y
yellow_ms5 Jun 2020 13:15Well, with the final invoice in 2021 for services rendered in 2021, a 19% tax applies to the total amount. If a 100% advance payment was made at 16%, the tax difference must be paid afterwards. Or am I mistaken? In summary: there is no legal way to benefit from the 16% tax rate if the service is provided in 2021.
S
saralina875 Jun 2020 13:26yellow_ms schrieb:
Well, with the final invoice in 2021 and the service completion date in 2021, 19% VAT applies to the total amount. If a 100% deposit was paid at 16%, the tax difference must be paid afterwards. Or am I mistaken? In summary: there is no legal way to benefit from the 16% rate if the service is completed only in 2021. Yes, that is correct.
The tricky part is distinguishing partial services from deposits; in the case of partial services, VAT would not have to be reclaimed.
Unless the Ministry of Finance agrees and issues a complete simplification and transitional regulation.