Can the input tax also be claimed for the private use of business assets?
July 9, 2022 | 40,00 EUR | answered by Marco Schottmann
Dear Tax Advisor,
My name is David Altmann and I run a small business in which I use assets such as my car or my phone for both business and personal purposes. Now I am wondering if I can claim input tax for the private use of my business assets.
Currently, I am unsure if I can claim input tax only for business purposes or also for personal purposes. Since I use the business assets for both business and personal use, I am concerned that I may be missing out on tax benefits if I only claim input tax for business purposes.
What are the options for claiming input tax for the private use of my business assets? Are there specific regulations or requirements that I need to consider? I would like to ensure that I maximize all tax opportunities and avoid any mistakes.
Thank you in advance for your help and advice.
Best regards,
David Altmann
Dear Mr. Altmann,
Thank you for your inquiry regarding the claiming of input tax for the private use of your business assets. It is important to understand the regulations regarding input tax and its deductibility in order to maximize tax benefits.
In principle, it is possible to claim input tax for the private use of business assets. However, there are certain conditions that need to be met. First and foremost, it is important to know that input tax can only be deducted for the business portion of the use. This means that you can claim the portion of input tax related to the business use of your assets.
Various methods can be used to determine the business portion of the use. A common method is to divide based on actual consumption. This involves tracking the actual consumption of the assets for business and private purposes and dividing accordingly. Another option is the use of a flat-rate division based on usage times or distances. It is important that the division is comprehensible and documented in order to withstand possible inquiries from the tax office.
In addition to division based on actual consumption or flat-rate methods, there is also the option of input tax lump sum. With this method, a flat input tax rate is applied to the private use of your business assets without the need for a precise division. This method may be simpler in some cases, but it also carries the risk of a potential additional payment if the actual use differs from the flat-rate estimate.
It is important to inform yourself about the options and requirements for claiming input tax for the private use of your business assets on a case-by-case basis. A tax advisor can assist you with this and help you maximize all tax options and avoid errors.
I hope this information is helpful to you and I am available for further questions.
Best regards,
Marco Schottmann
Tax Advisor
