Is there a cap on the input tax I can claim?
January 16, 2024 | 40,00 EUR | answered by Lorenzo Zimmermann
Dear tax advisor,
My name is Laura Klinger and I run a small sole proprietorship in the online retail sector. In recent months, I have made increased investments for which I would like to claim input tax. However, I am wondering if there is a maximum limit for input tax that I can declare in my VAT return.
Currently, I have an overview of my expenses and the corresponding input tax. My main focus is on correctly declaring all input tax amounts to minimize my tax burden. However, I am unsure if there is a limit beyond which I can no longer claim additional input tax amounts.
My concern is that I may declare too many input tax amounts and consequently encounter tax issues. Therefore, it would be helpful for me to know if there is a maximum limit for input tax and how I can determine this if necessary.
Can you please provide me with information on whether there is a maximum amount for input tax that I can declare in my VAT return? If so, how can I determine this limit and what steps can I take to ensure that I correctly declare my input tax amounts?
Thank you in advance for your support and advice.
Sincerely,
Laura Klinger
Dear Mrs. Klinger,
Thank you for your question regarding input tax and a possible limit for claiming it in your VAT return. As a tax advisor specializing in online commerce, I am happy to assist you with this.
In principle, there is no set limit for the input tax that you can declare in your VAT return. You can generally claim all input tax amounts that have actually been incurred and comply with legal requirements. This means that you can declare all input tax amounts related to your business expenses in your VAT return.
However, it is important to ensure that you meet the conditions for claiming input tax. This includes, among other things, that the expenses are related to your business and that you can provide proper invoices with VAT shown. Therefore, you should make sure that all your expenses meet the legal requirements to avoid issues with the tax authorities.
To ensure that you declare your input tax amounts correctly, I recommend keeping accurate records and retaining all relevant receipts and invoices. This way, you will have a clear overview of your expenses and can ensure that you correctly account for all input tax amounts.
If you are unsure whether certain expenses are deductible for input tax or how to correctly declare them in your VAT return, I am available for a personal consultation. Together, we can clarify your tax-related questions and ensure that you are doing everything correctly.
I hope this information has been helpful to you. If you have any further questions or would like individual advice, please do not hesitate to contact me.
Sincerely,
Lorenzo Zimmermann, Tax Advisor
