Temporary VAT reduction by 3% until 31.12.2020

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

However, there will also be GUs who keep the gross price the same and secretly try to raise the net price. At least that’s what I expect with mine...

You have a contract as well as a payment schedule (showing net and gross deductions) agreed with the GU, don’t you?

For every installment due in the mentioned period, I would simply pay the net price plus 16% VAT. Done.

Manso can't do that either, since the advance payment could possibly also be for services, e.g., before July, and then the guy would have had to pay the full VAT if he commissioned services... then, in the end, he would be the one who gets the short end of the stick. I think you really have to clarify exactly from when you can reduce which services.

I do not understand this measure at all. Especially given the current construction boom, the state budget can still take in some money. Reducing income and increasing expenses is not sustainable in the long run.

What sounds like a relief for every citizen will ultimately only benefit companies with many products. I do not believe that it will really reach the end customer.

uh, sorry. What nonsense. Who would just quickly change our software from 19 to 16%? Forms, software, cash register systems, invoice templates, etc. What an effort. The retailer will curse if this is only a temporary measure (because, as said, they won’t make any money from it initially. Only costs...) Any possible higher sales (which is probably the goal) does not necessarily make up for all that. For smaller businesses, more effort than profit?

Where is the problem? For companies, VAT does not matter, they offset the VAT paid against the VAT received and the remainder goes to the tax office. That is why all companies calculate net prices and not gross prices.