What documentation requirements apply to value added tax (VAT)?
March 27, 2024 | 50,00 EUR | answered by Lina Sauer
Dear tax advisor,
My name is Zofia Eder and I operate a small business that offers digital services. Lately, I have been thoroughly researching the topic of value-added tax and now I am feeling somewhat uncertain about the documentation requirements that I, as a business owner, need to follow.
So far, I have been properly declaring my revenues and submitting my VAT returns on time. However, I am unsure about the specific documents I need to retain and for how long they must be kept. I also wonder if there are any specific formatting requirements for invoices and the best way to archive them.
Furthermore, I am pondering whether I am allowed to store certain data electronically or if I am obligated to archive physical documents. I want to ensure that I comply with all legal requirements and avoid making any mistakes in my documentation to prevent any issues with the tax authorities.
Could you please provide me with a detailed explanation of the documentation requirements for VAT and the specific steps I need to take as a business owner to fulfill these obligations? I would greatly appreciate it if you could suggest possible solutions so that I can ensure my documentation is compliant in the future.
Thank you in advance for your assistance.
Sincerely,
Zofia Eder
Dear Ms. Eder,
Thank you for your inquiry and your interest in the correct documentation of your VAT. It is very important that as a business owner, you fulfill the legal requirements regarding the storage of documents to avoid issues with the tax office.
In general, as a business owner, you must keep all documents relevant to taxation for at least 10 years. This includes invoices, contracts, receipts, bank statements, as well as any other documents relevant to VAT. These documents must be created properly, completely, and in a timely manner, containing all the information required by law.
Special attention should be given to invoices, as they play a central role in documenting VAT. Invoices must include specific information such as your full address, the recipient's address, a unique invoice number, the issue date, the quantity and type of services provided, the time of delivery or service, and the agreed or actual price. Ensure that invoices can be archived electronically or in paper form and are accessible to the tax office at all times.
Regarding the electronic storage of data, as a business owner, you can generally choose whether you prefer physical documents or electronic data. However, you must ensure that electronically stored data is always readable and machine-readable. It is advisable to regularly back up the data and protect it from unauthorized access.
To ensure your documentation is compliant with the law, I recommend setting up a well-structured filing system where you keep all relevant documents neatly and orderly. Create a separate folder for VAT documents and make sure to file all receipts and invoices promptly.
If you are unsure whether your documentation meets the legal requirements, I recommend seeking professional assistance from a tax advisor in a timely manner. An experienced tax expert can help you review and potentially optimize your documentation to avoid any possible errors.
I hope this information helps you understand your duties regarding VAT documentation better. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Lina Sauer
Tax Advisor
