Temporary VAT reduction by 3% until 31.12.2020

How does the whole thing behave when the final invoice is to be issued after acceptance of all services, but defects still exist? That means the actual service was performed before 1.7., and the rectification of the defects then accordingly later.

If acceptance (keyword handover of services) has not yet taken place, then the applicable VAT rate applies. This is the previous regulation and, in my opinion, also the current one. If acceptance has taken place and defects are subsequently complained about, the situation may be different.

Hello everyone,
Admittedly, I have not read all 35 pages here.

Nevertheless, I would like to share our experience regarding the reduction of value-added tax (VAT).

We had a turnkey single-family house built with DFH AG (Okal Haus, Massa Haus and Allkauf Haus) and had our final acceptance at the end of July.

We also recently received our final invoice and a notification concerning the VAT reduction.

DFH (in our specific case Okal Haus) only applies the 3% reduction to invoices issued/will be issued in the period from 01.07 to 31.12.
No retroactive VAT reduction is granted.

Since this is now the final invoice for us, we only get a VAT of 16% on the last 10% of the project amount. All previously paid partial payments were calculated with 19% and were not changed.

Two lawyers told us that according to the recommendation of the tax authorities, previously paid invoices should also be reduced retroactively.

A colleague of mine is currently building with Heins van Heinen. He received a letter stating that already paid partial invoices will also be reduced retroactively if the acceptance takes place before 31.12.2020.

Unfortunately, I must once again note in this case that the decision to build with Okal Haus (DFH) was a wrong decision.

Is it actually allowed to withhold the 2.5% in such a case? You withhold 5% until acceptance. It would basically be a defect of the overall invoice.

Two lawyers told us that, according to the recommendation of the tax authorities, previously paid invoices should also be retroactively reduced.

A colleague of mine is currently building with Heins van Heinen. He received a letter stating that already paid partial invoices will also be retroactively reduced if the acceptance takes place before 31.12.2020.

Unfortunately, I have to conclude once again in this case that the decision to build with Okal Haus (DFH) was a wrong decision.

As I understand it, their argument to only reduce the final invoice also does not make much sense. Not retroactively adjusting the partial payments and the VAT would only be permissible if you had made partial acceptances before. Since you presumably accepted the entire service by the end of July, only 16% VAT applies to the entire service, so you previously paid too much VAT in the partial payments. This must be adjusted.

You are entitled to a proper invoice. You have not received it. I would prepare a statement, calculate the total net amount with 16%, and deduct the previous gross discounts from this gross sum. That will be transferred and no more. Afterwards, send this statement to Okal Haus and demand a proper invoice.

I know this from architects and civil engineers. In their case, invoices for customers are checked and incorrectly calculated items, prices, tax calculations, discounts, etc. are neatly corrected by hand directly on the invoice. Depending on how the invoice looks, you could do the same.

Assumption: no partial acceptance agreed upon

I also spoke with our construction company yesterday. They are taking the easy way out and say "That is decided by the companies of the individual trades themselves" - I find that strange because we have not made a contract with the individual companies. I'm curious what kind of fuss there will be about that.