Can I issue an invoice with VAT as a private individual?
November 24, 2021 | 35,00 EUR | answered by Steuerberater Knut Christiansen
My husband and I have purchased a farmhouse. The farmhouse includes a barn, which is partially rented out to a company as storage space. This company now wants a permanent invoice from us for the rent with specified VAT.
Are we allowed to issue an invoice with specified VAT as private individuals?
While the farmhouse is being renovated, we are living in 27283 Verden, and the farmhouse is located in 27327 Martfeld, both in Lower Saxony (if that is relevant).
Good morning and thank you for using frag-einen.com.
Regarding your question, I would like to provide you with the following feedback. As a landlord, you are also considered a business owner according to the Value Added Tax Act. Therefore, it would be possible for you to issue invoices or a rental contract with VAT shown. However, you would then be obligated to report the VAT to the tax office and pay it there. This means that the VAT would be a pass-through item for you. The advantage of being subject to VAT would be that you could claim VAT on costs related to renting out the barn as input tax. This amount could then be deducted from the VAT to be paid, reducing your tax liability to the tax office accordingly.
I hope this answers your question, but feel free to ask any further questions at no cost.
I would like to point out that this forum cannot replace a comprehensive and personalized tax consultation, but is mainly intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could be different.
Best regards,
Knut Christiansen
Tax Advisor
