Temporary VAT reduction by 3% until 31.12.2020

Yes, a general contractor more likely. But retail will definitely not reduce the (gross) prices by 3%! However, there will also be general contractors who keep the gross price the same and quietly try to increase the net price. At least, that's what I expect with mine...

The tax is a fixed value; the entrepreneur cannot simply say I charge 19% VAT even if legally it is 16%.

If there has been an offer, then the matter is clear, the net price remains and then only 16% is added. I think in the supermarket or at the Dönerbode the matter is no longer so simple, there the gross price stays as it is and the seller earns more.

I believe that most contracts contain a clause regarding the adjustment of the offer price to the current value-added tax rate. As a rule, the tax has always been increased so far, so the construction company would otherwise have had to bear the cost.

But in my opinion, it is also important to consider how the contract is structured. Since usually no completed partial services are agreed upon, but lump-sum deductions, it is quite possible that the deductions are billed at 16%. And then, if the final invoice is perhaps not issued until 2021, 19% is due on everything.

For those who are now concluding contracts and want to start building this year, a visit to the tax advisor for contract design could be worthwhile. Then you could possibly put the shell construction and interior construction into separate contracts. If the shell construction is then completed this year, 16% is due, and 19% on the interior construction the following year.

I have just also checked my advance invoices. The currently valid 19% were shown everywhere. So all types of deductions are probably always indicated with the current VAT rate of the day. (It would be nicer for me if the VAT had only been on the final invoice in the coming months)

Why shouldn't there be 19% on that?

As a rule, the final invoice should include the total amount and then the gross amounts already paid should be deducted from the total sum.

You have always agreed on net prices with the companies; whether the VAT on the invoice is 11% or 21% is completely irrelevant to the "seller." That is only interesting for the end consumer, who actually pays the tax.

If the gross amount on the offer is, for example, €300,000, then you only pay €292,436.97 ((300,000 / 119) * 116) if the invoice is issued in the period from 01.07. - 31.12.