Do I have to treat the input tax from credit notes separately?
September 25, 2023 | 40,00 EUR | answered by Phillip Buchner
Dear tax consultant,
My name is Gertrud Halbscheffel and I am a self-employed entrepreneur. In my accounting, I often receive credits from my suppliers. I am unsure whether I need to treat the input tax from these credits separately and if I can even claim them.
Currently, I do my own accounting and I already have some experience with input tax. However, I am unsure about how to handle input tax from credits and I want to ensure that I am handling it correctly for tax purposes.
My concern is that I might be doing something wrong and potentially risk tax repayments or even penalties. Therefore, it would be very helpful for me if you could explain to me how to correctly treat the input tax from credits and if there are any special regulations to consider.
Could you possibly provide me with specific recommendations on how to correctly record and claim input tax from credits? I look forward to your expert advice and thank you in advance for your support.
Sincerely,
Gertrud Halbscheffel
Dear Mrs. Halbscheffel,
Thank you for your inquiry regarding the treatment of input tax from credit notes in your accounting. It is important that you address this issue to avoid tax problems and to be able to correctly claim your input tax.
In general, you must treat the input tax from credit notes separately and book it correctly. Credit notes are refunds or reimbursements that you receive from your suppliers, for example due to complaints, returns, or discounts. You can generally claim the input tax from these credit notes to reduce your input tax burden.
When booking the input tax from credit notes, make sure that it is recorded in the correct account class. Typically, the input tax from credit notes is booked to the same account where the original input tax from the invoice was recorded. This ensures that the input tax is correctly offset and reported in your VAT return.
There are no special regulations to consider when it comes to input tax from credit notes. You should simply ensure that you document all credit notes properly and book the input tax correctly. If you are unsure whether you are treating the input tax from credit notes correctly, I recommend consulting a tax advisor who can assist you with the correct booking.
Overall, it is important that you address the issue of input tax from credit notes to avoid tax problems and to be able to correctly claim your input tax. I hope that my explanation helps you with the correct treatment of input tax from credit notes and I am available for any further questions.
Best regards,
Phillip Buchner
