How can I reclaim the input tax from my purchases?
March 2, 2022 | 40,00 EUR | answered by Phillip Buchner
Dear tax advisor,
My name is Artur Schmid and I run a small business in the online trading sector. In the past months, I have made many purchases where I have paid input tax. Now I am wondering how I can get this input tax refunded.
I have not had any experience with input tax refunds before and I am unsure of how to proceed. I have heard that there are different ways to reclaim the input tax from my purchases, but I am not sure which one is best suited for my company.
I am concerned that I may lose money if I do not correctly reclaim the input tax. Therefore, I want to make sure that I explore all options to financially support my company.
Could you please explain to me how I can reclaim the input tax from my purchases? Are there specific requirements that I need to meet in order to get the input tax refunded? What specific steps do I need to take to apply for the input tax refund?
Thank you in advance for your help.
Kind regards,
Artur Schmid
Dear Artur Schmid,
Thank you for your inquiry regarding the VAT refund. It is understandable that you may feel uncertain if you have no previous experience with this topic. I will explain in detail how you can get the VAT refunded from your purchases.
First of all, you should know that VAT is the sales tax you pay when buying goods or services. As a business owner, you have the opportunity to deduct this VAT from the sales tax you collect from your customers. This way, you can get the VAT refunded.
To get the VAT refunded, as a business owner, you need to submit a VAT refund application to the tax office. You must provide the relevant receipts and invoices showing how much VAT you have paid. These documents must be properly kept and accessible to the tax office.
There are certain requirements you must meet to get the VAT refunded. Firstly, you must be liable for VAT yourself, meaning you offer goods or services for payment. Secondly, the purchases for which you want to reclaim the VAT must have been actually used for your business.
The specific steps to apply for VAT refund are usually as follows: Gather all relevant receipts for your purchases and calculate the total amount of VAT paid. Then fill out the appropriate form for VAT refund and submit it along with the receipts to the tax office.
It is important to comply with all deadlines and regulations to correctly reclaim the VAT. Otherwise, you risk having your application rejected and not getting the VAT refunded.
I hope this information is helpful to you. If you have any further questions or need assistance, I am happy to help.
Best regards,
Phillip Buchner
