Can I claim input tax for services from abroad?
June 9, 2023 | 30,00 EUR | answered by Phillip Buchner
Dear tax advisor,
I am facing the question of whether I can claim input tax for services from abroad. In my company, which operates in the online trading sector, there are regularly costs for services provided by foreign companies. These services are essential for the operation of my business and make up a significant portion of my expenses.
So far, I have paid the invoices for these services without considering the input tax. However, I am now wondering if it is possible to claim input tax for these expenses and thus reduce my tax burden. I am concerned that I may be missing out on money by not taking advantage of this opportunity.
I would be very grateful if you could explain to me if and under what conditions I can claim input tax for services from abroad. Are there any specific regulations or special considerations that I need to keep in mind? What specific steps would I need to take to correctly deduct the input tax?
Thank you in advance for your support and expertise in this matter.
Sincerely,
Siegfried Schmid
Dear Mr. Schmid,
Thank you for your inquiry regarding the claiming of input tax for services from abroad. As a tax advisor specializing in input tax, I can help you and provide you with all the important information on this matter.
In general, it is possible to claim input tax for services from abroad, provided that the conditions are met. There are some specific regulations and requirements that need to be considered. First and foremost, it is important that the services were actually provided for your company and have a direct connection to your business activities.
To deduct input tax for services from abroad, certain information must be included on the invoice from the foreign company. This includes the tax number or VAT identification number of the foreign company, your own name and address, the date of the service provision, and the type of service provided.
Furthermore, you need to ensure that the invoices are properly issued and comply with legal requirements. If important information is missing or if the invoices are incorrect, this may result in the input tax not being claimable.
To correctly deduct input tax for services from abroad, you should record these invoices in your accounting and declare them in your VAT return. There, you can claim the input tax as operating expenses and thus reduce your tax burden.
It is advisable to consult with a tax advisor in advance to ensure that you understand and comply with all requirements and regulations. A professional tax advisor can help you avoid possible errors and correctly claim your input tax.
I hope this information was helpful to you. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Phillip Buchner
