Temporary VAT reduction by 3% until 31.12.2020

Right. I can hardly imagine it (as I have now already said about ten times) either - but it may be that (who can imagine it) is right and it will turn out that way after all. If a company does it the way thinks is correct, the question is whether one takes action against it. The only option in that case would be to go through a lawyer. Whether it is worth it probably depends on the amount.

[QUOTE] first of all... the measures have not yet been legally regulated/detailed, therefore we can only speculate!!

Regarding 1a: With regard to VAT, we assume that the point in time of service (acceptance!) will be decisive. See also a text from Haufe Verlag:

Construction services A particular problem arises with construction services. In practice, the conditions for partial services are regularly not met for construction services. Although economically separable services are often performed, there is mostly a lack of agreement on partial services and the corresponding tax-effective acceptance of such partial services. Depending on the situation, this may now result in an advantage or disadvantage for the recipients of the service.

Important: No agreements on partial services If no agreements on partial services were made in a contract, the tax authorities did not object in earlier VAT rate changes if a corresponding agreement was made up to the time the VAT rate change came into effect. At least if the VAT rate is raised back to 19% on 1.1.2021, agreements on partial services should be made for economically separable services that have not yet been fully executed by then.

If uniform construction services are performed in the period from 1.7.2020 to 31.12.2020 (in general the acceptance by the client is decisive here), the entire service is subject to the reduced VAT rate of then 16%, regardless of whether down payments already taxed at 19% were made. Accordingly, the service must be subject again to the standard VAT rate of 19% if the service is performed after 31.12.2020.

As far as services are performed for a recipient not entitled to input tax deduction, the conclusion should possibly be placed - without creating an abusive arrangement - in the period between 1.7.2020 and 31.12.2020.

Example: Concluding an agreement on the execution of partial services Client B commissioned the general contractor G in 2019 to build a turnkey single-family house on a property belonging to him for private purposes. G performs a taxable and subject to VAT work supply, the VAT arises with execution (acceptance) of the service. If the turnkey single-family house is completed in the period from 1.7.2020 to 31.12.2020, the entire service is subject to VAT of 16%. If the service is only carried out from 1.1.2021, the service is subject to the standard VAT rate of 19%. In this case, it would be advisable to conclude an agreement on the execution of partial services before 31.12.2020 and to accept the partial services completed by 31.12.2020. In this respect, the partial services would then finally only be subject to the VAT rate of 16%.

Regarding 1b: It depends! If you agreed on gross amounts, the amount remains. However, if you have an offer with net amounts plus VAT of 19%, the construction company may only invoice the net amount plus the applicable VAT (16% / 19%) in our opinion.

Regarding 2 and 3: See point 1a. Presumably, the execution of the service, here acceptance, or if contracts for individual trades exist, then the acceptance of these trades, will be decisive for the VAT. The VAT overpaid on advance payment invoices will then be corrected with the final invoice. But as said... there are no final regulations yet, we can only speculate from previous adjustments!

I hope I could help

Yes... And?
The only thing that has anything to do with the question currently being discussed is what the tax advisor wrote at 1b – with the addition "u.E." and the mention that there is no regulation on this yet. Hopefully, these regulations will come in the next few days, but it could also simply happen that these questions will have to be resolved in court. No one knows that for sure yet, neither us at the tax office nor the tax advisors nor anyone else.

What do you want to do if a company issues you an invoice as considers correct? Engage in a legal dispute?

Seriously, I don’t want to be a nuisance. Are there offers that don’t correspond to 1b? No matter what offer, each was issued in net/gross. I have to say, we are building with an architect in individual contracting. Is this where my understanding problem lies?