Can input tax also be claimed for one-off transactions?
March 21, 2023 | 30,00 EUR | answered by Marco Schottmann
Dear tax advisor,
My name is Andrea Breitwieser and I run a small business in the field of trading in handicrafts. In the past, I have only occasionally conducted transactions where I paid sales tax to my suppliers. Now, I am faced with a situation where I will be participating in a one-time project where I need to purchase a larger quantity of materials, for which I will also have to pay sales tax.
I have been under the impression that I can only claim input tax in regular transactions. However, since this project is an exception and I am unsure if I can also deduct the input tax in this case, I am reaching out to you. I am concerned that I may be financially disadvantaged if I am unable to claim the input tax, as it involves a significant amount.
Could you please explain to me whether input tax can also be claimed in one-time transactions? If not, are there possibly alternatives or approaches that could help me reduce the financial burden? I would greatly appreciate your professional advice and support on this matter.
Thank you in advance.
Best regards,
Andrea Breitwieser
Dear Mrs. Breitwieser,
Thank you for your inquiry regarding the claiming of input tax in one-time transactions. As a tax advisor specializing in value added tax, I am happy to assist you with this.
In principle, input tax from purchase invoices for business purposes can be claimed, regardless of whether it is regular or one-time transactions. This means that even in your one-time project, where you purchase a large quantity of materials and pay sales tax, the input tax is deductible. It is important that the purchase invoices contain all legally required information and are properly kept in order to claim the input tax.
If you are unsure whether the input tax is deductible in your specific case, I recommend presenting all relevant documents and invoices to a tax advisor. They can assess whether the input tax can be claimed and advise you in this area.
If you are unable or do not wish to claim the input tax, there may be alternative solutions to reduce the financial burden. For example, adjusting the prices of your products or services could be considered to offset the costs incurred. You could also negotiate with your suppliers to obtain better terms and thus reduce the financial burden.
It is advisable to contact a tax advisor early on to clarify all tax aspects in advance and avoid potential pitfalls. I am available for consultation and support and look forward to assisting you with your concerns.
Best regards,
Marco Schottmann, Tax Advisor
