What do I need to consider when I want to deduct input tax from invoices in EU countries?
July 25, 2022 | 40,00 EUR | answered by Tobias Waldmüller
Dear tax advisor,
my name is Heike Werner and I run a small business in Germany. Lately, I have been receiving more and more invoices from other EU countries and I am wondering what I need to consider in order to deduct the input tax from these invoices.
So far, I have only deducted the input tax from invoices from German suppliers and I am therefore a bit unsure about how to proceed with invoices from other EU countries. My concern is that I might make mistakes and encounter issues with the tax authorities.
Could you please explain to me in detail what steps I need to take to deduct the input tax from invoices from other EU countries? Are there specific forms that I need to fill out? Do I need to present the invoices in a certain format? And are there deadlines that I need to adhere to?
I would be very grateful if you could assist me with this matter, as it is important for me as a business owner to deduct the input tax correctly and avoid any potential errors. Thank you in advance for your support.
Best regards,
Heike Werner
Dear Mrs. Werner,
Thank you for your inquiry regarding the deduction of input tax from invoices from other EU countries. I understand your uncertainty on this topic and would like to explain in detail the steps you need to follow in order to correctly deduct the input tax.
In general, as a business owner, you can deduct input tax from invoices from other EU countries just like you can from invoices from German suppliers. However, the deduction of input tax from EU invoices is not done directly through the VAT return, but rather through the so-called reverse charge procedure.
When dealing with invoices from other EU countries, you must first ensure that the supplying company is properly registered in the EU member state. You can verify this through the VAT Information Exchange System (VIES) of the Federal Central Tax Office. If a valid VAT identification number of the supplying company is provided, you can deduct the input tax.
In addition, invoices from other EU countries must comply with the legal requirements that also apply to German invoices. This includes, among other things, the indication of the VAT identification number of the supplying company, the quantity and type of goods delivered or services provided, the invoice date, and your own VAT identification number.
To deduct input tax from invoices from other EU countries, you must declare this in your VAT return. There are specific forms that you need to fill out in order to claim the input tax. It is important that you keep the invoices carefully and be able to present them to the tax office if needed.
In terms of deadlines, there are no special regulations for claiming input tax from EU invoices. However, you should ensure that you correctly declare the input tax from the corresponding reporting period in your VAT return to avoid any potential issues with the tax office.
I hope that my explanation has been helpful to you. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Tobias Waldmüller
