What impact does the introduction of the digital financial report have on value-added tax?
May 10, 2023 | 40,00 EUR | answered by Friedhelm Sauer
Dear tax advisor,
I am Ammelie Born and I run a small online trading company. In recent years, I have been extensively studying the topic of value added tax to ensure that I fulfill my tax obligations correctly. Now I have learned that the introduction of the digital financial report is imminent and I am wondering what impact this will have on my value added tax.
As an online retailer, it is crucial for me to correctly pay the sales tax and be able to claim input tax. I already have a digital accounting system that helps me capture and evaluate all relevant data. However, I am unsure if the introduction of the digital financial report will result in changes that affect my company.
My concern is that I may have to fulfill additional duties or requirements in order to continue handling the value added tax correctly. I want to ensure that my accounting meets the legal requirements and that no errors occur in the payment of sales tax.
Could you please explain to me the specific implications of the introduction of the digital financial report on the value added tax? Are there new regulations or procedures that I, as an online retailer, need to consider? What measures can I take to prepare optimally for these changes and continue to have control over my tax situation?
Thank you in advance for your support and expertise.
Sincerely,
Ammelie Born
Dear Ms. Born,
Thank you for your inquiry regarding the impact of the digital financial report on value added tax in your online trading company. I understand your concerns and would like to explain in detail what you may expect.
The digital financial report, also known as E-Balance, is an electronic transmission procedure for tax data to the tax authorities. This mainly involves the transmission of balance sheet data and profit and loss statements in electronic form. For you as an online retailer, this could mean that you may have additional obligations when it comes to transmitting your tax data.
However, there are specific points to consider regarding value added tax. Firstly, the tax authorities may have more detailed insights into your turnover tax data through the digital financial report. Therefore, it is even more important that your accounting is correct and complete in order to pass any potential audits.
Furthermore, the requirements for documenting value added tax relevant data may change. It is advisable to keep your accounting software up to date and ensure that it meets the requirements of the digital financial report.
To prepare optimally for these changes, I recommend attending regular training sessions on value added tax and E-Balance. Stay informed about current legislative changes and adjust your accounting processes accordingly if necessary.
Additionally, it is advisable to consult with an experienced tax advisor to analyze your tax situation and make any necessary adjustments. A tax advisor can also help you optimize potential tax benefits and avoid errors in value added tax remittance.
In conclusion, I would like to emphasize that the introduction of the digital financial report may bring changes, but with proper preparation and support from experts such as tax advisors, it can be managed successfully.
I hope my explanations have been helpful and I am available for any further questions.
Best regards,
Friedhelm Sauer
