Received offer from heating installer with incorrect VAT

Hello everyone,

I have received an offer from a heating installer for a heat pump (brine/water), controlled residential ventilation with heat recovery, sanitary installation, and descaling system.
Only 16% VAT was applied to the net amount on part of the services.

Thus, firstly, the company chose the wrong percentage and also only taxed a partial amount.
One thing I want to make clear in advance – I will point out these errors to the company!

But what if... so if I sign the offer as is. Could anything happen to me as a private builder? What happens to the company?

Thank you very much for your answers!

He will adjust it accordingly. VAT is a pass-through item for every self-employed person. Net is his "earnings".

So that means, even if he calculates the VAT incorrectly in the offer, he could still charge me for it afterwards, right?

Furthermore, I noticed another mistake - he did not tax the entire net contract but only about 2/3 of it. Why is that - is there a distinction made between personnel and material costs here?

I currently believe that his IT system is calculating completely incorrectly...

There is probably something wrong with his calculation program. However, he is obligated to charge you the VAT correctly and in full, it will be noticed at the latest during his (!) tax audit and then it will be rectified.

Best regards
Dirk Grafe

I would simply address the craftsman about it. The wrong tax rate is definitely just an oversight and he will surely honor the mentioned gross price as a gesture of goodwill. "A man, a word." By the way, in the case of a tax audit, the correction would be made at the expense of the entrepreneur, because contrary to widespread belief, the tax is deducted from the payment.

Hello everyone,

thank you very much for your responses. After I pointed out the error to the company, they were completely taken by surprise. Apparently, they had a software update in the program used shortly before.

That's where the error crept in. So as a small thank you, I received at least a 2% discount on top of the already existing 2% cash discount after a short inquiry.

That's what happens when you rely blindly on the calculation software...!