What are the consequences if I incorrectly claim input tax?
December 28, 2023 | 40,00 EUR | answered by Phillip Buchner
Dear tax advisor,
My name is Xenia Meyer and I run a small online business for which I regularly claim input tax. Lately, I have heard that there can be consequences if the input tax is declared incorrectly. This concerns me and I would like to learn more about it in order to avoid possible problems in advance.
So far, I have always made sure to carefully check all receipts and invoices and to correctly declare the input tax in my advance VAT return. However, I am unsure if I may have made mistakes and what the consequences could be.
Therefore, I would like to know from you what consequences I could face if I have incorrectly claimed the input tax. Are there financial penalties or other sanctions that could be imposed on me? And how can I ensure that I do not make any mistakes in the future when claiming input tax?
I would be very grateful if you could help me with this question, as the legal aspects surrounding input tax are not fully clear to me. Thank you in advance for your support.
Sincerely,
Xenia Meyer
Dear Mrs. Meyer,
Thank you for your inquiry regarding input tax. It is understandable that you are concerned about whether you may have made errors in claiming input tax and what consequences this could have. I would like to assist you further and provide you with more information on this topic.
First and foremost, it is important to understand that correctly claiming input tax is a crucial part of the VAT return. Input tax is the VAT that is invoiced to you as a business owner by your suppliers. By declaring this input tax in your VAT return, you reduce the VAT payable to the tax office.
If you incorrectly declare input tax, this can have consequences. Primarily, you may face a VAT repayment if the tax office finds during an audit that you have claimed too much input tax. This repayment may come with financial penalties or interest, depending on the severity of the error.
Therefore, it is crucial that you carefully review all receipts and invoices and ensure that you only claim the actual input tax incurred. Make sure that the invoices are correctly issued and contain all the necessary information. Also, double-check whether you have correctly transferred all input tax amounts in your VAT return.
To avoid making errors in claiming input tax in the future, I recommend regularly staying informed about the current tax regulations. It may also be helpful to seek advice from a tax advisor who can assist you in correctly accounting for and claiming input tax.
I hope that this information has been helpful to you. If you have any further questions, please do not hesitate to contact me.
Best regards,
Phillip Buchner
