Input tax deduction - invoice recipient GbR
March 9, 2012 | 30,00 EUR | answered by Michael Herrmann
Hello,
my husband and I operate a GbR. We are aware that incoming invoices must be issued in the name of the GbR, instead of just one partner, to ensure the deduction of VAT.
Question: Which name exactly should it be?
Situation:
- Registration at the trade office is (for example):
Hans Müller Heidi Müller GbR
- In business transactions, the name is (for example):
Schulz Müller GbR Hans Müller Heidi Müller
Which name should be on the invoice (address is always the same)?
Is it problematic if a supplier is "creative" and uses, for example, H. Müller H. Müller GbR instead of spelling out the first names?
Are there also regulations for invoices under EUR 150? Because technically no name should be mentioned here.
Are there also problems with invoices for which input tax for the home office can be claimed (e.g. electricity) or for professional phone calls on the private phone bill? These invoices obviously do not bear the name of the GbR.
Thank you and best regards.
Dear inquirer,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Any designation of the recipient of services is sufficient to enable a clear and easily verifiable determination of their name and address (see BFH judgment of April 2, 1997 - BStBl II p. 443). Inaccuracies do not lead to a denial of input tax deduction under the other conditions, if for example, despite spelling errors in the name or address of the supplier or recipient of services or in the description of the services, a clear and unambiguous identification of the parties involved in the service exchange, the service, and the time of the service is possible, and the inaccuracies are not distortion of meaning.
Therefore, you should ensure that the GbR is clearly identified as the invoice recipient as necessary. As long as the Hans Müller Heidi Müller GbR is clearly identified, there will be no problems in the context of an audit, even if there are slight deviations.
However, the company cannot claim input tax deduction from invoices that are issued only to a partner if the invoice does not indicate the company as the recipient of services (see BFH judgment of October 5, 1995 - BStBl 199611 p. 111).
For invoices under 150 euros, it is not necessary to provide the recipient's information. However, if a recipient not identical to the GbR is stated on the invoice, the input tax deduction is still not possible.
These regulations apply only to VAT law and input tax deduction. If the business connection is proven, the gross amount can be claimed as a business expense. Only the input tax remains non-deductible.
I hope that these explanations have given you a sufficient overview of the situation in the context of your inquiry and this initial consultation, and I remain
Yours sincerely,
Michael Herrmann
Tax Advisor
Diploma in Business Administration (FH)
