How do I report tax-exempt sales in my advance VAT return?
March 12, 2022 | 40,00 EUR | answered by Oliver Götzinger
Dear tax consultant,
My name is Gerd Gehrmann and I operate a business that generates tax-free revenue. I am currently facing the challenge of correctly reporting these tax-free revenues in my VAT return. So far, I have always done this somewhat unsurely and am not sure if I have done everything correctly.
My company generates revenue in the area of property rental, which is exempt from VAT according to § 4 No. 12 UStG. I regularly submit VAT returns to fulfill my tax obligations. However, I am unsure about how to correctly report the tax-free revenues.
I am concerned about avoiding tax errors and not receiving unpleasant consequences due to incorrect information in my VAT return. Therefore, I want to ensure that I report the tax-free revenues correctly and transparently.
Could you please explain to me how to correctly and properly report tax-free revenues in my VAT return? Are there specific fields or markings that I need to use? Are there any special considerations to keep in mind when it comes to tax-free revenues?
Thank you in advance for your help and support in this matter.
Sincerely,
Gerd Gehrmann
Dear Mr. Gehrmann,
Thank you for your inquiry regarding the correct reporting of tax-exempt sales in your VAT return. It is important to record these sales accurately to avoid tax errors and potential consequences.
As a company generating tax-exempt sales according to § 4 No. 12 UStG, you must report these sales in your VAT return. There are specific fields in the VAT return where tax-exempt sales can be recorded. These fields are usually labeled as "tax-exempt sales" or similar.
To correctly report tax-exempt sales, you must enter the total amount of these sales in the appropriate field. It is important to separate the amount of tax-exempt sales from taxable sales to ensure a clear distinction.
There are also specific considerations to keep in mind when it comes to tax-exempt sales. For example, you must ensure that the tax-exempt sales actually meet the conditions for tax exemption according to § 4 No. 12 UStG. It is important to stay informed about all relevant regulations to avoid any errors.
I recommend consulting an experienced tax advisor when recording tax-exempt sales in your VAT return to ensure that everything is correctly and properly reported. A professional tax advisor can help you avoid potential errors and ensure that your VAT return is accurate.
I hope this information is helpful to you and supports you in correctly reporting tax-exempt sales. If you have any further questions or need assistance, I am at your disposal.
Best regards,
Oliver Götzinger
Tax Advisor
