Temporary VAT reduction by 3% until 31.12.2020

Yes, who would carry out such a measure that involves so much effort, for only 6 months. Minimum 1 year. Rather 7 years, which is a standard economic cycle. I am still in favor of helicopter money.

No, that will not work. VAT is a balance sheet item and a pass-through item of the entrepreneur. The item is shown in the balance sheet when the service has been provided and the full purchase price payment/final acceptance has taken place. In other words, if the acceptance of the service occurs within the specified period up to 31.12.2020, the tax rate will also be applied to this period.

Maybe the reduction will be extended a bit.

well, let's hope so

I believe the extension was on

well, let's hope for that

I would at least check the contract very carefully regarding the topic of VAT. The agreement in the B2C area is gross and not net. Only if it is explicitly pointed out that a change in VAT (not an increase) also leads to a change in the price, a correction should be possible.

I have a clause like this:

For the agreed services, a lump sum fixed price of xxx including the statutory value-added tax (VAT), currently 19%, is agreed. The client receives a fixed price guarantee for 12 months. If the tax rate changes, the price changes accordingly.

So if the VAT decreases, the fixed price would also decrease.

Unfortunately, I don't believe the work will be completed by 12/31 (completely up to interior plaster). The building application has just been submitted.

I would need to talk to the general contractor to see if we can change the contract from lump sum to individual services, since I might potentially remove windows anyway, that might be the more sensible way. But then there is a risk that it will become more expensive.

Well, first we have to wait for the building permit.

The cool thing is, the demolition will probably fall exactly into that phase, which is already a few hundred euros.
Small amounts also add up.

Unfortunately, our acceptance falls exactly within this period. The contract unfortunately says nothing about the reduction of value-added tax, but only the following wording:
“The agreed house price includes the statutory value-added tax of 19%.
In the event of a later increase in value-added tax, the house price changes by the respective percentage.”
Who had already expected a reduction in value-added tax at the time of contract conclusion.