Are there specific expenses for which I cannot claim input tax?
June 13, 2023 | 40,00 EUR | answered by Phillip Buchner
Dear tax advisor,
My name is Elvira Büchner and I run a small business in the food industry. In recent years, I have been actively involved in the topic of input tax and have tried to claim as many expenses as possible. However, I am not sure if there are certain expenses for which I cannot claim input tax.
I have already made many investments, such as the purchase of new kitchen equipment, the renovation of my premises, and the purchase of workwear for my employees. I have claimed input tax on all of these expenses and hope that I have done everything correctly.
However, I have heard that there are certain expenses for which input tax is not deductible. I am worried that I may have made mistakes and now have to face consequences. Therefore, I would like to know from you if there are indeed expenses for which I cannot claim input tax, and how I can ensure that I do not make any mistakes in the future.
I would greatly appreciate your help and advice on this matter, as it is very important for me as a business owner to correctly consider all tax aspects. Thank you in advance for your support.
Sincerely,
Elvira Büchner
Dear Mrs. Büchner,
Thank you for your inquiry regarding input tax and possible errors in claiming expenses in your small gastronomy business. It is understandable that you are concerned about the correct handling of input tax and want to ensure that you have not made any mistakes.
First and foremost, I would like to assure you that there are indeed certain expenses for which input tax is not deductible. In general, you can only claim input tax on expenses that are related to your business and serve to generate taxable turnover. This means that expenses that are used exclusively for private purposes or for tax-exempt turnover are usually not deductible for input tax.
Examples of non-deductible expenses include private purchases, such as the private use of a company vehicle, or expenses for tax-exempt turnover, such as income from renting out property.
Regarding the investments you mentioned, such as the purchase of new kitchen equipment, the renovation of your premises, and the purchase of work clothing for your employees, it is important to verify whether these expenses are indeed business-related and serve to generate taxable turnover. If this is the case, you can usually claim input tax on them.
To ensure that you do not make any mistakes in claiming input tax in the future, I recommend carefully reviewing and documenting all expenses. Keep a detailed list of all business expenses and check whether they are deductible for input tax. If you are unsure whether certain expenses are deductible for input tax, I recommend seeking advice from a tax advisor. A tax advisor can provide comprehensive information on the tax aspects of your expenses and assist you in correctly handling your tax matters.
I hope that my explanations are helpful to you, and I am available for any further questions you may have. Thank you for your trust, and I wish you continued success with your gastronomy business.
Best regards,
Phillip Buchner
