Temporary VAT reduction by 3% until 31.12.2020

Hello everyone,

good news for all those who are still building this year:

„[...]Among other things, the Union and SDP agreed on a reduction of the value-added tax. From July 1 to December 31, 2020, the VAT rate is to be reduced from 19 percent to 16 percent and the reduced rate from 7 percent to 5 percent, as stated in a resolution paper available to the German Press Agency.“

Source: Handelsblatt

And 300€ per child

I wonder how VAT is handled with a gu when you have previously received a fixed-price offer... whether it then really reduces the VAT accordingly

Of course he does, VAT is a pass-through item for him. Only the end customer actually pays it.

Yes, a general contractor is more likely. But retail will definitely not lower the (gross) prices by 3%!

However, there will also be general contractors who keep the gross price the same and secretly try to increase the net price. At least, that's what I expect with mine...

But I also can’t imagine that craft businesses would pass it on... you can’t really trace it properly either...