Invoicing
August 7, 2012 | 25,00 EUR | answered by Wirtschaftsprüfer André Hintz
Question: Is the billing by the tax office objectionable?
Situation: Mr. Y runs a commercial business.
(Tiling, drywall, landscaping)
Mr. Y and Mrs. X (partnership) are owners of 2 holiday homes with 4 holiday apartments. (rented out to guests all year round)
Mrs. X commissions Mr. Y's company to carry out tiling and landscaping work on the mentioned holiday homes.
Mr. Y invoices Mrs. X (partnership) for the work carried out.
Best regards Please do not post on the internet!!
Dear questioner,
I would like to answer your question within the framework of an initial consultation and based on your fee commitment, in accordance with the rules of the online portal. My response is based on the facts you have presented.
In principle, the process is correctly described. Both the commercial operation and the GbR are separate taxpayers. This means that the commercial operation must issue a proper invoice to the GbR. It is always important to have an agreement, contract, or order confirmation as if dealing with third parties.
However, it should be noted that Mr. Y operates the commercial business and is involved in the GbR. If the commercial operation is conducted in the legal form of a sole proprietorship or partnership, it should be noted that one cannot issue an invoice to oneself.
Therefore, at the end of the year, the GbR calculates its profit, which is then distributed to Mr. Y and Mrs. X. Mr. Y must then add his share of the invoice back to his share of the profit. When determining the profit of the commercial operation, his share of the invoice must be deducted.
I hope my explanations have been helpful and remain
Yours sincerely,
André Hintz
Tax consultant
