Can I deduct input tax from parking fees and toll costs?
October 3, 2023 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
my name is Konrad Rothammer and I run a small transportation company. In my business, I incur regular parking fees and toll costs, which I have always paid for myself. Now I am wondering if I can deduct the input tax from these expenses to reduce my tax burden.
I have not yet delved into the topic of input tax intensively and I am unsure if I can even claim the parking fees and toll costs. I want to make sure that I am not missing out on any potential tax benefits and that I am financially optimizing my business.
Could you please explain to me if and under what conditions I can deduct the input tax from parking fees and toll costs? Are there specific documentation requirements that I need to follow? And what steps do I need to take to correctly report the input tax in my tax return?
Thank you in advance for your help and guidance.
Sincerely,
Konrad Rothammer
Dear Mr. Rothammer,
Thank you for your inquiry regarding the input tax on parking fees and toll costs for your transportation company. It is good that you are addressing this issue, as correctly deducting input taxes can indeed help reduce your tax burden and optimize your company's finances.
In general, you can claim the input tax on parking fees and toll costs in your tax return if these expenses are related to your business and you have used them for taxable supplies. This means that you can only deduct the input tax if you have paid the parking fees and toll costs for business purposes.
In order to correctly deduct the input tax, it is important that you carefully keep and document the relevant invoices and receipts. The invoices must contain all necessary information, such as your name, address, date of the service, type of service, amount, and of course the VAT amount. Only with complete and proper invoices can you successfully claim the input tax.
In your tax return, you must then include the input tax on parking fees and toll costs in the appropriate attachment (e.g. VAT attachment). There, you enter the amounts and calculate them with the VAT you have paid to the tax office in the corresponding period. This way, you can correctly settle your input tax and, if applicable, receive a refund.
I hope this information has been helpful to you. If you have any further questions or need assistance, I am at your disposal. Thank you for your trust and I wish you continued success with your transportation company.
Best regards,
Roberta Schlattmann
