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Value added tax retroactively for the previous year? Partial invoices

December 27, 2019 | 30,00 EUR | answered by Steuerberater Knut Christiansen

Hello,

I am a self-employed photographer and in 2020, for the first time, I am no longer a small business owner and am now subject to VAT.

Many of my jobs are booked in advance, with either a deposit or full payment made the previous year. This includes jobs for 2020.

Up until now, I have issued invoices with a 30% deposit due immediately upon booking, and the remainder to be paid no later than the day of service.

What does this mean for 2020? Do I need to issue a new invoice with VAT for the remaining balance upon service delivery, and what about jobs that have already been paid for? I have read that retroactive VAT may be due for those jobs, even though at the time it was not foreseeable that I would become subject to VAT.

Thank you for your help.

Steuerberater Knut Christiansen

Hello,

The key factor for the emergence of value-added tax is the date of service provision. So if you provide the service in the year 2020, the complete invoice would need to be issued with value-added tax. Therefore, you would also have to pay value-added tax on the down payment. In this case, it does not matter when you received the money or the down payment.

I hope this answers your question, otherwise feel free to ask for further clarification at no cost.

Best regards,

Knut Christiansen
Tax advisor