Are there exceptions for input tax refund for certain industries?
June 26, 2023 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
I have a question regarding input tax refund and hope that you can assist me. I am the owner of a small business in the furniture industry and have recently noticed that I am consistently paying high amounts of input tax on my purchases. Now I am wondering if there are any exceptions for input tax refund for specific industries and if I may be eligible for a higher refund.
The current situation is as follows: Over the past few months, I have purchased a variety of furniture pieces and furnishings for my business operations in order to expand my product range. I have noticed the high amounts of input tax that have accumulated on these purchases. I am wondering if there are any ways to reduce or avoid these input tax amounts.
My concern is that the high input tax amounts are putting a strain on my financial situation and could potentially reduce my profit margin. I would like to know if there are any special regulations or exceptions that would allow me to reduce my input tax burden and improve my financial situation.
So my question to you is: Are there any exceptions for input tax refund for specific industries, such as the furniture industry? If so, what options do I have as a business owner in the furniture industry to take advantage of these exceptions and reduce my input tax burden?
Thank you in advance for your assistance and I look forward to your expert advice.
Best regards,
Gabriele Herrmann
Dear Mrs. Herrmann,
Thank you for your inquiry regarding input tax refund in the furniture industry. As a tax advisor with years of experience in this field, I am happy to assist you and provide you with some information on this topic.
First and foremost, it is important to know that generally every entrepreneur who calculates and pays sales tax to the tax authorities as part of their business activities can also claim input tax. This also applies to entrepreneurs in the furniture industry who pay input tax on their purchases. Input tax is the sales tax that you pay on your purchases and that you can reclaim from the tax authorities.
However, there are no specific exceptions or regulations for input tax refund in the furniture industry. The amount of input tax you can claim generally depends on your purchases and the associated sales. There are, however, some general tips and tricks on how to reduce your input tax burden:
1. Check if you can claim input tax on your purchases: Not all purchases are eligible for input tax deduction. Make sure that the invoices are correctly issued and the input tax is separately stated.
2. Use the small business regulation: If your turnover in the previous year was below 17,500 euros and is expected to be below 50,000 euros in the current year, you can take advantage of the small business regulation and be exempt from sales tax.
3. Consider the possibility of cash accounting: With cash accounting, the sales tax is only due from the point at which the customer has paid the invoice. This can help avoid liquidity constraints.
4. Consider the possibility of a flat rate input tax calculation: With a flat rate input tax calculation, you can claim a fixed percentage of your purchases as input tax without having to evaluate each individual invoice.
In conclusion, there are no specific exceptions for input tax refund in the furniture industry, but there are various ways in which you as an entrepreneur can reduce your input tax burden. I recommend contacting your tax advisor for personalized tips and advice tailored to your specific situation.
I hope this information has been helpful to you and I am available for any further questions.
Best regards,
Roberta Schlattmann
