Is value added tax refund income when building a house?
November 10, 2013 | 35,00 EUR | answered by Steuerberater Peter Jansen
We received a refund of 30,000 euros in VAT during the construction of a house (holiday home, intended for rent) in 2012. Do I have to enter this amount (only VAT on construction costs) in line 18 of attachment V and will this amount then become an income that increases my earnings in this year accordingly (even though I can of course deduct 2% depreciation and ongoing costs for the house as well as furnishing costs)?
Dear questioner,
Within the scope of an initial consultation and your fee contribution in accordance with the rules of this forum, I would like to answer your question.
By renting out the holiday home, you generate income from renting and leasing. You have obviously opted for VAT taxation. For income tax purposes, VAT is considered income at the time of receipt, and paid input VAT is considered advertising expenses at the time of payment.
The VAT refunded by the tax office in 2012 belongs, as you correctly state, in line 18 of attachment V.
Please also note line 17 of attachment V regarding VAT on current income. For advertising expenses, lines 48 and 51 should be considered for paid VAT and paid input VAT.
I hope that I could assist you with this information within the scope of your contribution and this initial consultation.
Best regards,
Peter Jansen
Tax consultant
Böblinger Str. 87, 70199 Stuttgart
Tel.: 0711 / 16036573
E-mail: mail@steuerberater-jansen.com
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