What special features are there when it comes to input tax refund for non-profit organizations?
September 17, 2023 | 40,00 EUR | answered by Phillip Buchner
Dear tax consultant,
I am the managing director of a non-profit organization and am currently dealing with the topic of input tax refund. In the past, we have regularly submitted VAT returns, but we have not yet delved deeply into the topic of input tax refund.
Our organization uses input tax to reclaim the purchasing tax on goods and services that are used for our non-profit purposes. We have heard that there are some specific considerations that non-profit organizations must be aware of when it comes to input tax refund, and we are unsure to what extent these apply to us.
Our concern is that we may not have fully utilized all opportunities for input tax refund so far, potentially missing out on financial benefits. We want to ensure that we meet all requirements and handle all relevant matters related to input tax refund correctly.
Could you please provide us with more information on the specific considerations for input tax refund for non-profit organizations and the steps we need to take to optimize our input tax refund? Are there any specific requirements we need to consider in order to make our claims?
Thank you in advance for your support and advice.
Sincerely,
Emil Heuser
Dear Emil Heuser,
Thank you for your inquiry regarding the input tax refund for non-profit organizations. As the managing director of a non-profit association, it is important to familiarize yourself with this topic to ensure that you can utilize all financial opportunities optimally.
In general, non-profit organizations have the possibility to reclaim the input tax on goods and services that are used for their tax-exempt purposes. This can represent an important financial support for your organization.
However, there are some specific considerations that non-profit organizations must take into account when it comes to input tax refunds. Firstly, it is important that the expenses for which you want to claim the input tax refund are actually used for the tax-exempt purposes of your organization. There must be a direct connection between the expenses and the non-profit activities.
Furthermore, non-profit organizations must ensure that they meet the requirements of § 15 UStG. This includes, among other things, that the organization is recognized as non-profit and has opted for VAT. If your organization generates taxable sales, it is important that you regularly submit VAT returns in order to claim your input tax refund.
To optimize your input tax refund, I recommend that you carefully document all expenses and revenues of your organization. Keep accurate accounting records and retain all receipts. This way, you can ensure that you can correctly and completely claim all input tax refund entitlements.
If you are unsure whether your organization meets all the requirements for input tax refund, I recommend that you consult with an experienced tax advisor. A tax advisor can help you clarify all relevant matters related to input tax refund and ensure that you can optimize all financial benefits.
I hope this information is helpful to you and I am available for any further questions.
Sincerely,
Phillip Buchner
