What requirements must I meet in order to be able to claim input tax?
August 27, 2022 | 35,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
my name is Gerald Jensen and I run a small business in the online trading sector. In recent months, I have purchased goods for my business and paid VAT. Now I am wondering if I can claim this input tax and what requirements I need to meet for that.
My company is exempt from VAT as a small business according to § 19 UStG. However, I have read that under certain circumstances it is possible to still claim the input tax. I am unsure if my company meets the necessary requirements.
I am concerned that I may be giving away money by not claiming the input tax. The amounts involved are not insignificant and could accumulate to a considerable sum over time. Therefore, I want to make sure that I explore all possibilities to optimize my expenses.
Could you please specifically outline the requirements that my company must meet in order to claim the input tax? Are there specific criteria or conditions that I need to consider? And if my company does not meet these requirements, are there alternative ways to still deduct the input tax?
Thank you in advance for your support and clarification on this matter.
Best regards,
Gerald Jensen
Dear Mr. Jensen,
Thank you for your inquiry regarding claiming input tax in your company. As a tax consultant with many years of experience in the field of sales tax, I am pleased to be able to assist you on this topic.
First of all, it is important to know that as a small business owner, you are generally exempt from sales tax according to § 19 UStG. This means that you do not charge your customers sales tax and therefore do not have to submit a sales tax return. However, as a small business owner, you also do not have input tax deduction and therefore cannot claim the input tax you have paid when purchasing goods or services.
There are exceptions, however, under which small business owners can claim input tax. One of these exceptions is, for example, if you purchase goods or services for a taxable activity. So if you also generate taxable sales in addition to your activities as a small business owner, you can claim the input tax from these purchases.
Another important point is that input tax can only be claimed if the invoices are properly issued and meet all legal requirements. It is therefore advisable to keep all receipts carefully and be able to present them if necessary.
If your company does not meet the requirements for claiming input tax, unfortunately there is no way to still deduct the input tax. It is therefore important to check in advance whether it is worth purchasing goods or services for your company as a small business owner if you cannot claim the input tax.
I hope that this information has been helpful to you. If you have any further questions or would like individual advice, I am happy to assist you.
Best regards,
Roberta Schlattmann
