Can I deduct input tax for telecommunication services used for business purposes?
August 8, 2023 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
My name is Xenia Weber and I run a small business in the IT industry. In my company, my employees and I regularly use telecommunications services such as mobile phone contracts, internet access, and landline connections for business purposes. I am wondering if I can deduct the input tax for these business-related telecommunications services.
So far, I have always paid the invoices for the telecommunications services without considering whether I can claim the input tax. Since the costs for telecommunications services in my company are not insignificant, I am concerned that I may be giving away money by not deducting the input tax.
I have already tried to inform myself about the regulations for input tax on telecommunications services, but the subject is very complex for me as a layperson. That's why I am turning to you to get clarity: Can I deduct the input tax for business-related telecommunications services, and if so, what is the best way to do this correctly?
I would greatly appreciate it if you could help me in your online consultation and show me possible solutions on how I can correctly deduct the input tax for business-related telecommunications services in my company.
Thank you in advance for your support.
Sincerely,
Xenia Weber
Dear Mrs. Weber,
Thank you for your inquiry regarding the possibility of deducting input tax for telecommunication services used for business purposes in your company. As a tax consultant specializing in input tax advisory, I am happy to assist you and show you the necessary steps.
In general, it is possible to deduct input tax for telecommunication services that are exclusively used for business purposes. This refers to the value-added tax that is incurred on the invoices for telecommunication services from your company. You can claim this input tax in your VAT return and deduct it from the VAT to be paid.
To correctly deduct input tax for telecommunication services used for business purposes, it is important that the invoices are issued in the name of your company and that the services are clearly declared as being used for business purposes. Additionally, you should ensure that the invoices comply with legal requirements and contain all necessary information.
I recommend that you carefully collect and review all invoices for telecommunication services to determine if they were used for business purposes. If you are unsure whether a service was used for business purposes, you can verify it using contracts or other documents.
For the correct deduction of input tax for telecommunication services, you can consult your tax advisor. Together, you can discuss the necessary steps and ensure that the input tax is correctly claimed.
I hope that this information has been helpful to you. If you have any further questions or need assistance, please do not hesitate to contact me.
Best regards,
Roberta Schlattmann
