VAT reduction during house construction

In our contract it states:
Fixed price: xxx.xxx EUR incl. 19% VAT.

"The fixed price includes the statutory VAT valid at the time of commissioning. If this master contract was not concluded later than 4 calendar months before the entry into force of a VAT increase, <> may demand a reasonable compensation for the additional VAT burden. The same applies accordingly to the client if the VAT rate is reduced."

We will have the acceptance and final invoice in the period from 1.7.20 to 31.12.20.

So far, we have already paid 90% in partial payments with 19% VAT.

Would be a bit bitter, because we insisted on the clause.

Security costs. Those who eliminate risks also do so with opportunities.

I’m afraid a fixed price means a fixed price. But maybe you’re lucky and your BU passes on the reduction anyway – it’s possible that there is some uncertainty and they prefer to avoid trouble. I can well imagine that there are several cases with similar contracts and that some affected parties will have the whole thing reviewed in court. Possibly some contractors want to avoid such a lawsuit.

Our contractor is actually showing some leniency now. He billed the first invoice after the key date with 16% in our favor. Verbally, he assured us that he will pass on the 3% on the total amount even though he apparently doesn’t have to.

We signed the construction contract and the payment schedule on 18.03.2020. On 06.07.2020 the building permit was issued and on 10.07.2020 construction started. We have already received 2 installment payments according to this payment schedule and have already paid them.

The installment invoice then states the type as "Beginn Ergeschossmauerwerk" and on the other invoice "Baubeginn" with the service date being the same as the invoice date.

Both installment payments were shown with 16%.

I then sent these to the bank, and they immediately deducted the 3% discount per invoice and transferred the remaining amount to the general contractor.

The surveyor sent me the last two invoices with 16%. The compactor control was also invoiced at 16% by the soil expert.

We signed the construction contract and the payment schedule on 18.03.2020. The building permit arrived on 06.07.2020 and construction started on 10.07.2020. We have already received 2 advance payments according to this payment schedule and have already paid them. The type on the advance invoice says "Start of ground floor masonry" and on the other invoice "Start of construction" with the service date being the same as the invoice date. Both advance payments were shown with 16%. I then sent these to the bank, and they immediately deducted 3% discount per invoice and transferred the remaining amount to the general contractor. The surveyor sent me the last two invoices with 16%. Compaction control was also invoiced at 16% by the soil expert.

The problem is that if the project ends in 2021, you have to pay the 3% afterwards (not for the surveyor). In house construction, the decisive factor for determining VAT is the point in time when the house was completed.

Unless I do partial acceptances according to the individual construction progress, right?

And the completion of the house then only counts the trades that I left with the [GU], right?

Because I commissioned the painter and floor layers myself. If they only finish their work in 2021, it is clear to me that then I have to pay them the 19%.