Operating costs settlement commercial property
May 11, 2011 | 50,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello,
I am renting out a commercial production hall and unfortunately I am currently having some trouble with my tenant regarding the utility bill.
This is how I create the bill: I list the net amount, the 19% VAT, and the gross amount. I add the advance payments plus VAT and calculate the gross amounts. This is quite simple for the heating costs.
However, for the operating costs, there are insurances, property tax, and sewerage, which do not include VAT! How do I list the net amount? It seems that this does not match the "actual" net amount of all operating costs, such as insurance etc.
And are the 7% tax rate on water also VAT? Do I need to consider and list this in the VAT to be shown?
Thank you very much for a prompt response!
Dear client,
Thank you for your inquiry, which I would like to answer based on the information you provided and in the context of your commitment within the framework of initial consultation as follows:
You have opted for regular taxation by renting out the production hall to a commercial tenant, meaning your tenant pays VAT on the rent, which he can deduct as input tax. In most cases, the rental agreement constitutes an invoice according to § 14 UStG, entitling to input tax deduction.
However, heating and ancillary cost statements are initially not invoices within the meaning of § 14 UStG entitling to input tax deduction, so the statement for the tenant must comply with the requirements of § 14 UStG in order for him to claim input tax deduction from the tax authorities. The following features must be fulfilled:
You as the landlord and the tenant as the service recipient must be named with complete name and address.
You must provide your tax number or VAT identification number.
The issue date must be indicated on the ancillary cost statement.
The ancillary cost statement must be numbered consecutively.
You must list the basic and consumption cost shares as well as the distribution key, with the billing period considered as the delivery time.
You must break down the consideration by tax rates and tax exemptions.
The tax rate from the main service, rent currently at 19%, is then to be applied.
In your case, you must deduct VAT from all ancillary costs that include VAT. Other taxes, such as insurance tax, should not be deducted. You then add 19% VAT to the remaining net amount, as ancillary costs follow the fate of the main service as ancillary service and therefore are subject to 19% VAT, including water, insurance, property tax, sewage fees, etc.
I hope this information is helpful.
Sincerely,
Ulrich Stiller
Tax consultant/Diploma in Business Administration
