Ask a tax advisor on the topic of Input tax

What are the consequences if the input tax is incorrectly declared?

March 29, 2023 | 40,00 EUR | answered by Marco Schottmann

Dear tax advisor,

I am Maria Maier and I have a question regarding the declaration of input tax in my tax return. I run a small business and I am unsure if I have correctly stated the input tax. The current situation is that I have declared the input tax for the past fiscal year in my tax return, but I am not sure if everything is correct. I am worried that there could be consequences if the input tax was incorrectly declared.

Therefore, I would like to know from you what possible consequences there could be if the input tax was incorrectly stated. Is it possible that the tax office demands a repayment or even imposes penalties? Are there ways to correct this and how should I proceed in the future to avoid errors in declaring input tax?

I would be very grateful if you could help me and show me possible solutions. Thank you in advance for your support.

Yours sincerely,
Maria Maier

Marco Schottmann

Dear Ms. Maier,

Thank you for your inquiry regarding the declaration of input tax in your tax return. It is understandable that you are concerned if you are unsure if everything has been correctly reported. I can assure you that it is important to declare input tax correctly, as incorrect information can have consequences.

If input tax has been incorrectly declared, the tax office may indeed demand a repayment. This means that you will have to repay the amount that you wrongly claimed as input tax. Additionally, penalties can also be imposed, depending on how serious the error is. These penalties can take the form of fines or even legal proceedings against you or your company.

To avoid errors in the declaration of input tax, it is important that you comply with legal requirements and carefully retain all necessary receipts and documents. Additionally, you should regularly review your accounting and, if necessary, work with a tax advisor to ensure that everything is correct.

If you discover that input tax has been incorrectly reported, it is important that you inform the tax office immediately and make a correction. You can submit an amended tax return in which the errors are corrected. The sooner you act, the lesser the potential consequences.

I hope that this information has been helpful to you and I am available to assist you if you have any further questions. Please do not hesitate to contact me.

Best regards,
Marco Schottmann