Can I also deduct input tax as a small business owner?
November 20, 2022 | 30,00 EUR | answered by Phillip Buchner
Dear tax consultant,
I am Oliver Hacker and have been operating an online trading company as a small business owner for some time now. In the past, I have been studying the issue of input tax intensively and now I am wondering if I, as a small business owner, can also deduct input tax.
Currently, I am in a situation where I am making many investments to expand and optimize my business. Naturally, this also includes a variety of input tax amounts that I would like to claim. However, I am unsure if I am even entitled to do so as a small business owner.
My concern is that I may be giving away money by not taking advantage of the opportunity to deduct input tax. On the other hand, I do not want to get into legal trouble by doing so unjustly.
Therefore, my question to you is: Can I deduct input tax as a small business owner, and if so, under what conditions is this possible? Are there specific limits or restrictions that I need to consider? And how can I best proceed to ensure that I make no mistakes?
I look forward to your response and thank you in advance for your assistance.
Sincerely,
Oliver Hacker
Dear Mr. Hacker,
Thank you for your question regarding input tax as a small business owner. I understand that you are wondering how to deduct input tax in order to optimize your investments. I am happy to provide you with detailed information on this matter.
As a small business owner according to § 19 UStG, it is possible to claim input tax. However, there are certain conditions to consider. As a small business owner, you are not allowed to charge VAT in the course of your business activities and are therefore exempt from VAT. This does not mean, however, that you cannot deduct input tax.
If you make investments as a small business owner and incur input tax amounts, you can generally claim these within the framework of input tax deduction. The prerequisite is that the investments are related to your business activities and that you can provide the corresponding invoices or receipts. It is important that the expenses are clearly traceable as operational costs.
There are no specific limits or restrictions on input tax deduction as a small business owner. In general, you can claim all input tax amounts related to your business activities. However, it is important that you meet the requirements for input tax deduction and keep the relevant documents properly.
To ensure that you do not make any mistakes and correctly carry out input tax deduction, I recommend consulting a tax advisor. A tax advisor can provide you with individual advice and assist you with the processing of input tax deduction. Additionally, they can help you avoid potential legal issues and ensure that you comply with all tax regulations.
I hope that this information has been helpful to you and I am available for any further questions you may have.
Best regards,
Phillip Buchner
