Are tax consultant fees exempt from value-added tax?
August 29, 2023 | 50,00 EUR | answered by Eva Peters
Dear tax advisor,
My name is Claudia Evers and I am a self-employed entrepreneur. In my company, I am heavily involved in the topic of taxes and finances. Lately, I have been increasingly concerned about the costs of tax advisors and I am wondering if they are exempt from VAT.
Currently, I am receiving services from an external tax advisor who helps me with preparing my tax returns and bookkeeping. The costs of his services are relevant to me as a business owner, but I am unsure if I need to pay VAT on these costs.
My concern is that I may be incurring unnecessary costs if tax advisor fees are indeed exempt from VAT and I have been mistakenly paying it so far. On the other hand, I also do not want to encounter any legal issues and want to be on the safe side.
Therefore, my question to you as an expert is: Are tax advisor costs actually exempt from VAT? If not, what steps should I take to correctly remit VAT? Are there any specific regulations or exceptions that I should consider in my case?
I thank you in advance for your support and expertise.
Sincerely,
Claudia Evers
Dear Mrs. Evers,
Thank you for your question regarding tax advisor costs and value added tax. As a tax advisor, I can help you and clarify how it applies in your case.
In general, the services of a tax advisor are exempt from VAT, as they are considered taxable services that are exempt from VAT according to § 4 No. 8 letter a of the Value Added Tax Act (UStG). This means that as a business owner, you usually do not have to pay VAT on the costs for the services of your tax advisor.
It is important to note that this exemption only applies to the actual services of the tax advisor, not to incidental costs such as travel expenses or outlays. These incidental costs may potentially be subject to VAT. Therefore, it is advisable to carefully review the invoices from your tax advisor and differentiate which costs are VAT exempt and which are not.
If you have mistakenly paid VAT on tax advisor costs, you can correct this in your VAT return and reclaim the overpaid VAT. In this case, it is recommended to contact your tax advisor or a tax expert to discuss the correct procedure and ensure that everything is handled properly.
In summary, the services of a tax advisor are generally exempt from VAT. However, it is important to carefully review the invoices and take necessary steps to correct any errors in billing.
I hope this answer has been helpful to you and I am available for any further questions.
Best regards,
Eva Peters
