Which documentation do I need to keep for sales tax purposes?
July 24, 2024 | 40,00 EUR | answered by Emma Wagner
Dear tax advisor,
I am Jürgen Brandes and I operate a small business in the field of IT services. Lately, I have been intensively studying the topic of value added tax, as I have realized that my previous documentation in this area is not sufficient.
So far, I have only prepared my VAT return based on my invoices and receipts, without keeping a detailed documentation of my taxable sales. Now I am concerned that my previous approach does not comply with legal requirements and could lead to problems with the tax office.
Therefore, I would like to know from you what specific documentation obligations I have regarding VAT and how I can best implement them. What documents do I need to create and how long do I need to keep them? Are there any special formal requirements that I need to consider?
I would greatly appreciate it if you could provide me with specific recommendations on how to improve my documentation in the area of VAT and avoid potential issues with the tax office.
Thank you in advance for your assistance.
Kind regards,
Jürgen Brandes
Dear Mr. Brandes,
Thank you for your inquiry and your interest in the topic of value added tax. It is good that you are dealing intensively with your VAT issues to avoid potential problems with the tax office. Accurate and proper documentation of your taxable sales is indeed of great importance to comply with legal requirements.
As a business owner, you have certain documentation obligations in the area of VAT. These include recording all taxable sales, capturing the corresponding VAT amounts, issuing correct invoices, and keeping the relevant documents.
To improve your documentation and avoid potential issues with the tax office, I recommend following these steps:
1. Systematically record all your taxable sales: Keep an accurate list of all your income subject to VAT. This includes invoices to customers as well as other income in this area.
2. Issue correct invoices: Ensure that your invoices contain all legally required information, such as your tax number, the customer's tax number, the period of performance, the tax rate, and the VAT amounts.
3. Keep all relevant documents: This includes not only your invoices but also all other receipts, such as contracts, bank statements, payment records, etc.
4. Observe the retention periods: Documents related to VAT must usually be kept for 10 years.
There are no specific formal requirements for documentation in the VAT area, as long as all legally required information is included. You can keep your documentation in both paper and electronic form, as long as it is proper and readily available.
I hope these guidelines help you improve your VAT documentation and avoid potential issues with the tax office. If you have any further questions, please feel free to contact me.
Best regards,
Emma Wagner
Tax Advisor
