ᐅ Reduced value-added tax until the end of 2020. How to proceed with invoices?

saralina87 schrieb:

When a deposit is received, VAT becomes due upon receipt, but there is no obligation to issue an invoice.

However, this only concerns the entrepreneur’s obligation to pay the tax to the tax authorities. It does not affect the customer. The same applies to "incorrect" invoices, for example, when 19% VAT is incorrectly stated instead of the reduced rate (or 19% instead of 16% in July); in such cases, the entrepreneur is still obligated to pay the collected (excess) tax.

Wait, the contractor is only required to make an advance payment of the total taxes based on the prepayments, which is then reconciled with the actual amount at the end of the project. Please correct me if I am wrong.

Fuchur schrieb:

This only concerns the contractor’s obligation to remit the tax to the tax authorities. It has nothing to do with the customer. The same applies to “incorrect” invoices, for example, those showing 19% instead of the reduced rate (or 19% instead of 16% in July); in these cases, the contractor still has to remit the collected (excess) tax.

Yes... But what does that have to do with the quote I wrote? Except for those entitled to claim input tax, the customer is never involved in remitting the sales tax (and even then, they don’t have to remit anything themselves).

You used "accrual of the tax" in a way that could be understood to mean the amount of tax is finally fixed at the time of payment.

Tassimat schrieb:

Wait, the contractor is only required to make an advance payment of the full tax based on advance payments received, which is then reconciled with the actual amount at the end of the project. Please correct me if I’m wrong.

The contractor is always subject to a certain advance reporting period. Basically, it is quarterly, but for larger contractors it is usually monthly (starting from tax of 7,500 in the previous year).

Fuchur schrieb:

You used "accrual of tax" in a way that could be understood as if the tax amount is definitively fixed at the time of payment.

“Accrual of tax” — that’s simply the legal term — only refers to the point in time when the contractor must pay (or report) the tax to the tax office. In the case of advance payments, this must be done by the end of the respective reporting period in which the advance payment was received.
Paragraph 14c and related rules then apply within their own reporting periods.

But I understand what you mean — no, the final tax amount is not fixed by this (of course), but the tax office does not wait until the project is completed to collect the sales tax on advance payments already received.

Exactly, that’s why I pointed it out, because the topic of this thread is actually about what the customer has to pay in the end.