Module 121 min2397 wordsFree — no account
Who must withhold: recipient, construction work, rate and de minimis thresholds
The module’s worked examples, then cases to attempt before revealing their solution · 2 sections · 223 words · 3 min
Worked example
Two flats and a shop
An owner lets two flats and a shop. In spring he has both bathrooms renewed for €11,900 and in autumn the shop converted for €7,140, each including VAT. The bathrooms fall under the exception in section 48(1) sentence 2 EStG. The shop does not: €7,140 exceeds €5,000, and without an exemption certificate he withholds €1,071.
Practical case
The threshold is crossed in the autumn
A housing company lets eight flats, all exempt. In April 2026 it pays a roofer €9,520 for a repair, including VAT; no further orders to him were planned. In October it unexpectedly commissions him to redo the facade and pays €7,140 for it. No exemption certificate has been presented. What must be withheld in April, and what in October?
Hint: First determine the relevant threshold, then check at each payment what is expected to be paid over the year at that moment.
Show the solution
The company makes exclusively exempt supplies under section 4 no. 12 sentence 1 of the VAT Act, so the threshold is €15,000. The small-landlord exception does not apply because it lets more than two flats. In April only €9,520 was expected, so no withholding was due. In October the total rises to €16,660 and exceeds the threshold. The October payment is fully subject: 15 percent of €7,140 is €1,071.
Answer: nothing in April, €1,071 in October
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