Section 14 Value Added Tax Act
August 8, 2012 | 30,00 EUR | answered by Wirtschaftsprüfer André Hintz
Dear Sir or Madam,
I have two questions regarding section 14 of the Value Added Tax Act (UStG) (generally speaking: I have a business operation):
1. Do the mandatory information requirements of section 14 of the UStG also apply as prerequisites for the deduction of operating expenses?
2. If a student provides me with a service once or twice a year and issues an invoice to me (without VAT), do the mandatory information requirements of section 14 of the UStG need to be included?
And a general question:
3. Do I need to ensure that the student declares the compensation in her income tax return?
Thank you in advance for your response.
Dear questioner,
I would like to answer your question within the scope of an initial consultation and your fee commitment, in accordance with the rules of the online portal. My response is based on the facts presented by you.
Operating expenses are expenses that are incurred by the operation (§ 4 para. 4 EStG), which means that operating expenses may exist even without an invoice according to § 14 UStG. An invoice according to § 14 UStG is therefore not mandatory.
The mandatory information according to § 14 UStG must be included in every issued invoice. However, if the student is a small business owner, she must issue invoices without VAT. In this case, information about the tax rate and net amount are omitted. A note in the invoice regarding the use of the small business regulation according to § 19 UStG is helpful, but not mandatory. All other information, however, is a prerequisite for a proper invoice.
It is important that the student's tax number is included in the invoice.
You cannot know or check whether the student submits a tax return or declares the income therein, and it is not your obligation to verify that.
I hope that my explanations have been helpful to you and remain
Yours sincerely
André Hintz
Tax consultant
Steuerberatung@andrehintz.de
