VAT reduction during house construction

  • Erstellt am 2020-06-04 06:45:09

saralina87

2020-06-04 14:33:21
  • #1
How do you come to that conclusion?
 

Musketier

2020-06-04 14:37:29
  • #2
Because the performance is only considered completed with the final acceptance, the 19% VAT is calculated on the total amount in the final invoice. (§13 USTG). According to §14(5) USTG, all interim invoices including VAT must be deducted from the final amount.
 

face26

2020-06-04 14:42:03
  • #3


According to the theory, it would be the other way around, but then already made interim payments currently invoiced at 19% would have to be "recalculated" or newly billed at 16% in a final payment in the 2nd half of the year if the work is only completed in the 2nd half of the year!?
 

saralina87

2020-06-04 14:45:01
  • #4
Nananana, the VAT Act also recognizes partial services and not just advance invoices. One has to differentiate a bit.
 

Musketier

2020-06-04 14:46:13
  • #5


In principle, yes. Of course, it depends on the contract design, as to who bears the 3%. In the private sector, gross prices are usually agreed upon. However, most contracts for work and services likely state that changes in VAT can be passed on to the customer.
 

Musketier

2020-06-04 14:48:50
  • #6
Correct. But then individual services would have to be agreed upon and interim inspections between the client and the general contractor would have to take place. Then there would probably also be different limitation periods for the warranties.
 
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