How can I claim input tax for business events?
May 10, 2023 | 30,00 EUR | answered by Tobias Waldmüller
Dear tax advisor,
my name is Lucas Raab and I run a medium-sized company in the events industry. Lately, I have been organizing more and more corporate events to strengthen the team and motivate the employees. However, this has also resulted in high costs that I would like to deduct for tax purposes.
Currently, I am unsure about how to correctly account for input tax on corporate events. I have read that input tax is generally deductible if it is used for business purposes. However, I am not sure if and how I can claim input tax on expenses for the events.
My concern is that I may have to pay tax back if I calculate the input tax incorrectly or do not declare it correctly. Therefore, it is very important for me to understand the specific steps I need to take to correctly claim input tax on corporate events.
Could you please explain to me how to correctly calculate and deduct input tax on expenses for corporate events? Are there specific requirements or evidence that I need to provide in order to claim input tax for tax purposes? I would be very grateful if you could provide me with specific tips and advice to optimize my tax situation regarding input tax on corporate events.
Thank you in advance for your assistance.
Best regards,
Lucas Raab
Dear Mr. Raab,
Thank you for your inquiry regarding input tax deduction for business events in your medium-sized company in the events industry. It is important to calculate and deduct input tax correctly to avoid possible tax repayments.
In general, input tax is deductible when used for business purposes. This means that input tax incurred on expenses for business events can usually be claimed for tax purposes. This includes costs for the venue, catering, technical equipment, decorations, and similar expenses.
To correctly deduct input tax for business events, you need to follow these steps:
1. Collect receipts: Keep all receipts and invoices documenting expenses for business events. These receipts are necessary to correctly deduct input tax.
2. Allocation of input tax: Verify if input tax can be clearly allocated to the business events. You must be able to prove that the expenses were actually incurred for business purposes.
3. Calculate input tax: Calculate the amount of input tax attributable to expenses for business events. This is done by applying the input tax rate (currently 19%) to the net costs of the event.
4. Claim input tax: Enter the input tax in your VAT return and deduct it from the VAT you have received from your customers. This will reduce your VAT liability.
It is important that you carefully review and document the requirements and evidence for claiming input tax for business events. Ensure that expenses can be clearly and unambiguously allocated to business events and that you can provide all necessary documents.
I hope this information helps you and supports you in optimizing your tax situation regarding input tax for business events. If you have any further questions or need assistance, I am happy to help.
Best regards,
Tobias Waldmüller
