What happens if the input tax was calculated incorrectly?
August 21, 2023 | 30,00 EUR | answered by Marco Schottmann
Dear tax advisor,
I recently discovered that I made a mistake in calculating my input tax. I am self-employed and incurred various business expenses during the last quarter for which I wanted to claim input tax. Unfortunately, I made a mistake in calculating the input tax and deducted too high of an amount. Now I am worried about the consequences this could have.
The situation is as follows: I had a total of 10,000 euros in business expenses for which I wanted to claim input tax. Due to my mistake, however, I deducted 1,000 euros too much and therefore claimed an excessive input tax deduction. I am unsure if this will have consequences for my tax return and if I should expect penalties or additional payments.
I am concerned that my mistake could lead to issues with the tax office and that I may face financial consequences in the worst case scenario. Therefore, I am wondering how I can correct this mistake and if there are ways to resolve the situation before it leads to negative impacts.
Could you please explain to me what happens if the input tax was incorrectly calculated and what steps I should take now to correct my mistake and avoid potential issues with the tax office?
Thank you in advance for your assistance.
Sincerely,
Jens Schulze
Dear Mr. Schulze,
Thank you for your inquiry regarding the error in the calculation of your input tax. It is understandable that you are concerned about the consequences this may have for your tax return. I would like to explain to you what happens when input tax is calculated incorrectly and what steps you should now take to correct your mistake.
First and foremost, it is important to understand that an error in the calculation of input tax does not automatically result in penalties or additional payments. In your case, where you have claimed too high an input tax deduction, this could lead to the tax office noticing the error during the review of your tax return and alerting you to it. You will then have the opportunity to correct the error and repay the amount overclaimed.
It is important that you correct the error independently and not wait for the tax office to point it out. You should calculate the amount overclaimed and report the correct input tax in your next VAT return. This will help you avoid potential issues with the tax office and show that you have recognized and corrected the error.
If the tax office has already noticed the error and sent you a notification, you should respond promptly and repay the amount overclaimed. In such cases, penalties are generally not imposed as long as you correct the error quickly and are cooperative.
It is advisable to thoroughly review your accounting to prevent such errors in the future. If you are unsure about how to correctly calculate input tax, I am happy to assist you and help clarify your tax matters.
I hope this information is helpful and reassuring to you. If you have any further questions, please do not hesitate to contact me.
Sincerely,
Marco Schottmann
