What happens if I incorrectly declare the input tax?
July 17, 2022 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
I recently submitted my advance tax return for the last quarter and realized that I incorrectly reported the input tax. I accidentally recorded some invoices incorrectly and may have claimed too much or too little input tax as a result.
The situation is that as a business owner, I am required to regularly submit advance tax returns and can deduct input tax to determine my actual tax liability. However, the current situation is that my information may not be correct and I may have to make tax payments or receive refunds.
My concerns are that I do not know what consequences incorrectly reporting input tax can have and how I can correct the situation without fearing legal consequences. I want to ensure that I am doing everything correctly in terms of taxes and have not made any errors that could cause problems with the tax office.
Can you please explain to me what happens if I incorrectly reported the input tax? Are there ways to correct my information and rectify any errors? What steps should I take now to avoid potential consequences?
Thank you in advance for your assistance.
Kind regards,
Alice Reimann
Dear Mrs. Reimann,
I understand your concern regarding the incorrect declaration of input tax in your VAT return and would like to assist you in resolving this matter. Incorrect input tax declaration can indeed have various implications, depending on whether you have claimed too much or too little input tax.
If you have deducted too much input tax, the tax office may request a tax repayment from you. In this case, you would need to repay the excess amount and potentially also pay interest. On the other hand, if you have claimed too little input tax, you may have to make a tax repayment as your actual tax liability is higher than originally stated. It is important to correct these errors as soon as possible to avoid further consequences.
To rectify the incorrect information and correct any mistakes, I recommend that you first make a correction to your VAT return. This can be done via the Elster portal or directly with the tax office. There, you can correct the incorrect information and enter the correct data. It is important to have the correct figures and receipts for your input tax declarations ready to be able to answer any inquiries from the tax office.
It may also be advisable to consult a trusted tax advisor to ensure that the correction of your information is done correctly and completely. A professional tax advisor can also help you avoid potential legal consequences and ensure that you are doing everything correctly from a tax perspective.
Overall, it is important to act quickly and correct the incorrect information to avoid any potential issues with the tax office. I hope that this information is helpful to you and I am available to answer any further questions you may have.
Kind regards,
Roberta Schlattmann
