Is input tax deductible for maintenance and repair costs?
July 5, 2022 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
my name is Eiko Mühlberg and I am currently dealing with the bookkeeping of my business. In this context, I have a question regarding input tax on maintenance and repair costs.
I have recently had some repair work done on my company's machinery and I am wondering if I can deduct the input tax from the invoices for these repairs. I am unsure whether these costs qualify as deductible input tax or if there are any specific regulations I need to consider.
My concern is that I may have incorrectly treated input tax amounts, which could result in tax disadvantages. Therefore, it is very important for me to know if I have correctly handled the input tax on maintenance and repair costs and if I need to make any corrections if necessary.
Could you please explain to me if input tax on maintenance and repair costs is deductible and if so, under what conditions? Are there any specific regulations or exceptions that I need to be aware of? I would greatly appreciate your help and advice on this matter.
Thank you in advance.
Best regards,
Eiko Mühlberg
Dear Mr. Mühlberg,
Thank you for your question regarding input tax on maintenance and repair costs. As a tax advisor specializing in this topic, I am pleased to be able to assist you.
In general, you can deduct the input tax from invoices for maintenance and repair costs, provided that these costs are incurred in the course of your business and are used to generate taxable revenue. It is important that the repair work is done on business machinery and not used for private purposes.
You can usually claim the input tax from invoices for maintenance and repair costs in your VAT return. It is important to ensure that the invoices are properly issued and meet all legal requirements. Additionally, make sure that the invoices are issued in your name or the name of your company and that the VAT is separately stated.
However, there are also special regulations and exceptions that you need to consider. For example, repair costs for privately used items cannot be claimed as input tax. There are also special rules for items used for both business and private purposes, where only a portion of the input tax is deductible.
It is important to keep all invoices and receipts carefully and check whether the input tax was treated correctly. If you are unsure whether you have correctly deducted the input tax from maintenance and repair costs, I recommend consulting a tax advisor. They can review your accounting records and make any necessary corrections.
I hope that this information has been helpful to you. If you have any further questions or require more detailed advice, I am at your disposal.
Best regards,
Roberta Schlattmann
