Can I deduct value added tax on invoices from abroad?
December 21, 2023 | 50,00 EUR | answered by Oliver Götzinger
Dear tax advisor,
I am Lukas Maier and I run a small business that sells products online. Lately, I have been receiving invoices from abroad with VAT shown on them. However, I am unsure whether I can actually deduct this VAT and how I should proceed.
So far, I have always been able to deduct the VAT on invoices from within the country without any issues, as I include them in my VAT return and claim the input tax accordingly. But with invoices from abroad, I am not sure if I can do the same or if there are differences here.
My concern is that I may be evading taxes or incorrectly billing if I simply deduct the VAT from abroad as I do with the VAT from within the country. I want to make sure that I comply with all tax regulations correctly and avoid any problems with the tax office.
Could you please explain to me if and how I can deduct the VAT on invoices from abroad? Are there any special forms that I need to fill out, or other steps that I should take into account? I would be very grateful for your help and advice on this matter.
Thank you in advance for your support.
Best regards,
Lukas Maier
Dear Mr. Maier,
Thank you for your inquiry regarding the VAT on invoices from abroad. It is understandable that you are unsure about how to proceed correctly in this case to avoid tax issues. I would like to explain in detail how the deduction of VAT on invoices from abroad works and what steps you should take.
In general, as a business owner, you should treat the VAT on invoices from abroad the same way as the VAT from domestic transactions. You can also claim input tax, provided that the invoices meet the legal requirements. These include, among others, the indication of the foreign company's VAT identification number, the correct calculation of VAT, and compliance with formalities.
If you receive invoices from abroad that include VAT, you can declare them in your VAT return and claim the input tax accordingly. It is important that you carefully review the invoices and ensure that all necessary information is present. If you are unsure whether the invoice meets the requirements, you can also contact the foreign company and request a corrected invoice.
Regarding special forms that you may need to fill out, there may be different requirements depending on the country of origin of the invoice. However, in general, you do not need to fill out additional forms, but simply declare the VAT in your VAT return. It is advisable to keep accurate records of the VAT on invoices from abroad to be able to prove, in the event of an audit by the tax office, that you have correctly claimed the input tax.
In summary, you can deduct the VAT on invoices from abroad in the same way as the VAT from domestic transactions, provided that the invoices contain all the necessary information. If you are unsure about how to proceed, I recommend seeking advice from a tax advisor who can help you with the correct handling.
I hope this information is helpful to you and I am available for any further questions. Thank you for your trust and inquiry.
Sincerely,
Oliver Götzinger, Tax Advisor
