Do I have to specify the input tax for each purchase separately?
October 13, 2022 | 40,00 EUR | answered by Tobias Waldmüller
Dear tax consultant,
my name is Edith Völker and I run a small business in the online trading sector. Lately, I have been actively researching the topic of input tax as I want to ensure that I am doing everything correctly and not making any mistakes in my VAT return.
My question pertains to the declaration of input tax for each purchase. So far, I have always collected all receipts and indicated the total amount of input tax at the end of the quarter in my VAT return. However, I have heard that it is important to separately declare the input tax for each purchase. Is that true?
I am concerned that I may be violating current regulations if I do not accurately declare the input tax. I want to do everything right and not risk unnecessary tax payments.
Can you please explain to me if it is indeed necessary to separately declare the input tax for each purchase? If so, what steps do I need to take to implement this correctly? Is there a specific software that could assist me with this?
Thank you in advance for your help.
Kind regards,
Edith Völker
Dear Mrs. Völker,
Thank you for your question regarding input tax. It is good that you are diving deep into this topic, as correctly stating the input tax for each purchase is indeed important to avoid errors in the VAT return.
In general, it is important to state the input tax, which is the VAT you paid on your purchases, correctly and separately for each purchase. It is not sufficient to just state the total amount of input tax at the end of the quarter. Each individual receipt must be recorded separately in order to deduct the input tax correctly.
By stating the input tax for each purchase separately, you will have a better overview of your tax obligations and can identify and correct any possible errors early on. Additionally, you will avoid unnecessary tax payments and adhere to the applicable regulations.
To correctly state the input tax for each purchase, I recommend using appropriate accounting software. There are numerous programs on the market tailored to the needs of small businesses in online commerce, which can help you easily and accurately record your purchases and the corresponding input taxes.
Such accounting software allows you to automatically calculate and state the input tax for each purchase. Furthermore, you can digitally record and manage your receipts, making overall accounting easier and more efficient.
I hope that this information was helpful to you and I am available for any further questions you may have. Please do not hesitate to contact me if you need further assistance.
Best regards,
Tobias Waldmüller
