Temporary VAT reduction by 3% until 31.12.2020

Here is an attachment from my tax advisor on this

Now I am completely confused. Do I understand correctly that advance payments do not matter as long as the acceptance will be after 07/01?

So far, we have paid almost 10 advance payments with 19% VAT – the acceptance and handover of the house is expected to be in September. What happens to the 19% invoices that we have already paid?

According to prevailing forum opinion, invoicing takes place. That means 16% VAT is applied to the total amount. It is disputed whether the contractor has to compensate you for the 3% on the net amount or not. If he has a corresponding clause in the contract that protects him against an increase in VAT (gross price increases), it would be assumed that the reverse situation benefits the consumer. Some contracts even contain the clause neutrally (mine, for example) and only speak of changes. If a corresponding clause is missing, it is a civil law question. I am of the opinion here that it would then be purely a gesture of goodwill on the part of the contractor to pass the difference to the old VAT rate in the gross price on to the consumer. Warning: all layman opinion and not binding advice!

I'm in the same situation, it will probably be credited on the final invoice.

But the law is still in draft and not passed yet.

Just spoke with our site manager and he brought up the topic on his own. He says that the tax advisors and tax offices are currently waiting for information on whether all houses accepted in the second half of the year must be charged at 16% – or not. This is up in the air but not yet confirmed. If that were the case, it wouldn’t matter at all what the contract says because it is legally regulated. He said that he (and all other involved companies as well) would logically have to correct the installment payments already received and we would get back the 3% difference.

I just spoke with our site manager and he brought up the topic himself. He says that the tax advisors and tax offices are currently waiting for information that all houses accepted in the second half of the year must be charged at 16% - or not. This is being discussed but has not yet been confirmed. If that were the case, it would be completely irrelevant what is stated in the contract because it is regulated by law. He said that he (and all other involved companies as well) would logically have to correct the installment payments already received and we would get the 3% difference back.

Sorry, but I find that extremely, extremely, extremely unlikely. If it did happen, cool, but to me it sounds more like an amateur translation of what the tax advisor hopefully explained differently (correctly, but much more complicated).

Sorry, but I find that extremely, extremely, extremely unlikely. If it were to happen that way, cool, but to me it sounds more like an amateur translation of what the tax consultant hopefully explained differently (correctly, but much more complicated).

Why? That exactly reflects what was previously sent here as well: Namely that the VAT is due upon final provision of the service. And in the case of the house, that is the acceptance.