Which input tax can I claim?
November 19, 2023 | 40,00 EUR | answered by Oliver Götzinger
Dear tax consultant,
my name is Christiane Gerdes and I run a small online trading company. In recent months, I have been purchasing goods from various suppliers to expand my product range. I have noticed that some invoices include input tax, while others do not. I am unsure which input tax I can actually claim and which I cannot.
The current situation is that I have some invoices with input tax, but I am not sure if I can actually include them in my VAT return. This makes me concerned that I may be paying too much tax or even violating tax regulations.
My question to you as a tax consultant is: Which input tax can I actually claim and how can I ensure that I do not make any errors when declaring input tax in my VAT return? Are there specific criteria that I need to consider in order to calculate and declare input tax correctly?
I look forward to your expert advice and thank you in advance for your help.
Sincerely,
Christiane Gerdes
Dear Mrs. Gerdes,
Thank you for your question regarding the claiming of input tax in your VAT return. As a tax advisor specializing in VAT, I would be happy to assist you with your concern.
Firstly, it is important to understand what input tax actually is. Input tax refers to the VAT you pay when purchasing goods or services. You can deduct this input tax from the VAT you collect from your customers, meaning you only have to pay the difference between the VAT you collect and the input tax you have paid to the tax authorities.
In order to correctly claim input tax, certain conditions must be met. Firstly, the invoices showing the input tax must be properly issued. This means they must contain all necessary information, such as the full name and address of the supplier, the quantity and type of goods delivered or services provided, the date of the invoice, and the amount of VAT.
It is also important to determine if the input tax is actually deductible. Generally, you can only claim input tax if it has been incurred for your business and if it is used for taxable supplies. This means you can only deduct input tax for goods or services used in the course of your business activities.
Another important point is input tax correction. If it turns out later that the input tax you claimed was too high or too low, you must make a correction. This may happen, for example, if the intended use of the purchased goods or services changes.
To ensure that you do not make any mistakes when declaring input tax in your VAT return, I recommend carefully reviewing and documenting all invoices. Keep a detailed record of the input tax paid and regularly compare it with the sales you have made. This way, you can ensure that you calculate and declare input tax correctly.
I hope this information has been helpful to you. If you have any further questions or need assistance, please do not hesitate to contact me.
Best regards,
Oliver Götzinger
Tax Advisor
