Is there a maximum limit for the input tax that I can claim?
January 2, 2022 | 40,00 EUR | answered by Phillip Buchner
Dear tax advisor,
I am Otto Strauss and I run a small business in the IT services sector. In recent years, I have made larger investments and accumulated high input tax amounts as a result. Now I am wondering if there is a limit to the input tax that I can claim.
Currently, I regularly receive invoices for materials, services, and equipment on which input tax is shown. Naturally, I want to deduct these input tax amounts to reduce my financial burden. However, I am unsure if there is a limit that I must not exceed.
My concerns are that I may have claimed too much input tax and could face tax consequences as a result. I do not want to make any mistakes and want to ensure that I comply with all relevant tax regulations.
Therefore, my question to you is: Is there a limit to the input tax that I can claim as a small business owner? If so, what is this limit and what actions can I take to ensure that I stay within this limit?
Thank you in advance for your support, and I look forward to your professional advice.
Sincerely,
Otto Strauss
Dear Mr. Strauss,
Thank you for your question regarding input tax and small businesses. As a tax advisor, I am happy to assist you and provide you with all the relevant information.
In general, for small businesses that are exempt from VAT according to § 19 UStG, there is no limit to the claiming of input tax amounts. This means that as a small business owner, you can fully claim all input tax amounts invoiced to you. There is no risk of claiming too high input tax amounts and facing tax consequences.
However, it is important to note that input tax amounts can only be claimed for business expenses. Private expenses are excluded from input tax deduction. Therefore, it is advisable to carefully check all invoices and ensure that the invoiced input tax is indeed related to business expenses.
To ensure compliance with tax regulations, I recommend that you carefully document and keep all receipts and invoices. This way, you will have an overview of your input tax amounts at all times and can provide evidence in case of a tax audit.
Furthermore, it is advisable to regularly review your tax documents with a tax advisor. A professional tax advisor can help you avoid errors and ensure that you comply with all tax regulations correctly.
I hope this information helps you and answers your question comprehensively. If you have any further questions or require individual advice, please do not hesitate to contact me.
Best regards,
Phillip Buchner
