VAT option selected
January 21, 2010 | 40,00 EUR | answered by Matthias Wander
Hello,
during the renovation of our farmhouse, we had opted for the VAT option. Now that the 10 years are up, I would like to opt out again, i.e. to show invoices without VAT. For this, I would like to have a sample text. It concerns a workshop and office space. For the workshop it doesn't matter, but I would like to avoid having to file a VAT return. The office space is also intended to be used as living space.
Best regards,
Henning Schindler
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information you provided in an initial consultation.
Both the option and its termination are not subject to any specific deadline or form.
The option is exercised by treating your sales as taxable. This is done by invoicing sales tax and indicating this in the sales tax return.
Conversely, the option is terminated by issuing invoices without sales tax and not preparing a sales tax return. A separate declaration to the tax office is not necessary.
Failure to submit the sales tax return may lead to inquiries from the tax office. To avoid unnecessary inquiries, you can of course inform the tax office of the termination of the option. The letter could be written as follows: "I hereby inform you that the option for sales tax liability according to § 9 UStG is no longer being exercised. The rental is now exempt from sales tax."
Please note: If sales tax is invoiced despite tax-exempt rental, it is still payable according to § 14c UStG.
I hope this information is helpful to you.
Best regards,
Wander
Tax advisor
