VAT reduction during house construction

So, nobody probably expected this when buying a house: VAT will be temporarily reduced by three percentage points between July 1 and December 31.

How does this work now with ongoing payments according to construction progress? The contracts usually only contain a clause on how to proceed if the rate increases; in that case, the correspondingly higher amounts must be paid.

Conversely, would such a rule also apply if the rate decreases?

The reduction applies to the gastronomy sector and only to food! Or do you have other information?

Best regards! mini

The reduction applies to the gastronomy sector and only to food! Or do you have other information?

Many greetings! mini

OK, I correct myself. First, get informed.

Many greetings! mini

Quote Stern: A central point of the package, according to the CSU chairman Markus Söder, is a reduction of the value-added tax. From July 1 until December 31, 2020, the VAT rate is to be reduced from 19 percent to 16 percent and for the reduced rate from 7 percent to 5 percent, as stated in a resolution paper.

That sounds to me as if the reduction applies to EVERYTHING?!

Exactly, the reduction applies to everything. Of course, it is still very recent.

I assume your contracting party will - provided the invoice is issued within the specified period - show you the value-added tax as legally required. If the VAT rate is 15% at that time, you must also pay this.