Temporary VAT reduction by 3% until 31.12.2020

I just wanted to clarify the "Zivilrechtliche Fragen" a bit. At first glance, it sounds as if whether the consumer benefits from the lower VAT depends solely on the deadline.

Regarding whether it’s worthwhile. That depends somewhat on the question of how many trades are affected. A kitchen worth 20,000 EUR amounts to 500 EUR difference, so one probably wouldn’t start a legal dispute over that. For windows, sanitary, heating, electricity, and plastering worth maybe 200,000 EUR (?), it’s then about 5,000 EUR. That might be more worthwhile. Of course, it can go both ways.

Hello!

Briefly our data:
Notarization appointment: end of 2019
Invoicing: 100% divided into several invoices until June 2020
Acceptance: July 2020
Handover: after July 2020

It is a developer contract; the land and the house on it belong to the developer and are considered together.

The contract states:
##
The purchase price amounts to € xxx,000 (in words: Euro xxx).

If the seller’s burden increases due to a change in the value-added tax, the seller can add the actual increase applicable to the purchase object to the last installment, provided that the increase is not included in installment payments due within 4 months from today.
##

The contract does not address a VAT rate or a cost reduction.

The invoices do not show any tax statement, only the line:
"The sale of land and rights equivalent to land is exempt from VAT."

Is there a possibility here to benefit from the reduction to 16%, or are we out of luck since no taxation is applied according to the invoices?
Somebody must be pocketing the 3% then, which I would find unfair...

Thank you very much for your assessments.

Hello! Briefly our data: Appointment for notarization: End of 2019 Invoicing: 100% divided into several invoices until June 2020 Acceptance: July 2020 Handover: after July 2020 It is a developer contract, the land and house on it belong to the developer and are considered together. The contract states: ## The purchase price is € xxx,000,-- (in words: Euro xxx). Should the seller’s burden increase as a result of a change in VAT, the seller may add the actual increase applicable to the purchase object to the last installment, provided that the increase is not included in purchase price installments due within 4 months from today. ## The contract does not address a VAT rate or reduction of costs. The invoices contain no tax statement, only the line: "The sale of land and land-like rights is exempt from VAT." Is there a possibility here to benefit from the reduction to 16% or are we out of luck since no taxation is applied according to the invoices? Someone must be pocketing the 3%, which I find unfair... Many thanks for your assessments.

Your purchase is not subject to VAT overall. So you do not pay VAT anyway and therefore cannot benefit from the 3%.

Clear answer - unfortunate.

One more question:
We have ordered various chargeable special requests from the developer, e.g.
- partial tile laying
- painting work
- garage
- electrical
- different doors, etc.

This is not part of the notary contract. The invoice for these items also contains the note of exemption from VAT and therefore no tax is shown.
Practically speaking, the developer commissions a local company to carry out these works, which will be done in July. This company invoices the developer, and the developer charges us with a surcharge.

Is this really the area of "land-related rights," so that no application of the lower VAT rate is possible here either?

Clear answer - a pity.

One more question: We ordered various paid special requests from the developer, e.g. - partial tiling - painting work - garage - electrical - other doors, etc.

This is not part of the notary contract. The invoice for these items also contains the note of exemption from VAT and therefore no tax is shown. Practically speaking, the developer commissions a local company to carry out these works, which will be done in July. This company bills the developer and the developer bills us with a surcharge.

Is this really the area of "rights equivalent to land ownership," so that no reduction of the VAT is possible here either?

No, it has nothing to do with rights equivalent to land ownership. However, it is still exempt from VAT (it has to do with the uniformity of the service) and therefore, as with the rest, no possibility. Less than zero is simply not possible.

Also, a question from me regarding the VAT reduction. New windows, lift-and-slide system, and front door were ordered at the beginning of 2019, contract agreed that 20% down payment after measurement, 50% after delivery, and 20% after installation or construction progress. Windows were installed in March, down payments made in February & March, but side cover strips are still missing, which will be installed tomorrow (i.e. 1.7), as well as blinds in front of the lift-and-slide system and the front door. In total, we still have to pay an amount of nearly €8,000 (about 30% of the total amount) after completion. How does the invoice look that will probably come sometime in July, does it include 16% on the remaining payment or will possibly the entire amount be invoiced at 16% since not everything was finished and the acceptance in that sense only takes place in July? Or are these partial invoices for the progress that will continue to be taxed at 19% and only the remaining payment at 16%? Does anyone know? Thanks