What must be considered in connection with invoices when claiming input tax refunds?
April 24, 2022 | 40,00 EUR | answered by Marco Schottmann
Dear tax advisor,
I have a question regarding input tax refund in relation to invoices. I run a small business and regularly purchase goods and services for which I would like to claim input tax. However, I am unsure about what exactly I need to consider in order to correctly deduct the input tax.
Currently, I collect all the invoices from my purchases and file them in a folder. I then transfer the amounts into my accounting software to claim the input tax. However, I have heard that there are certain details that must be included on the invoices in order for me to be able to deduct the input tax in the first place.
I am also unsure about whether I can claim input tax for invoices from abroad and how I should proceed in that case. Are there any specific regulations that I need to adhere to?
Furthermore, I am concerned that I may make errors in claiming input tax and potentially face tax payments or sanctions as a result. Therefore, I would like to know what specific steps I should take to ensure that my input tax refund is correct and that I do not encounter any issues with the tax authorities.
Could you please explain to me what needs to be considered when claiming input tax in relation to invoices and what possible solutions there are to avoid errors?
Thank you in advance.
Best regards,
Georg Zornitz
Dear Mr. Zornitz,
Thank you for your question regarding input tax refund in relation to invoices. It is important that you familiarize yourself with this topic to ensure that you deduct the input tax correctly and avoid possible errors.
First of all, it is correct that certain information must be included on the invoices in order for you to claim the input tax. This includes the complete name and address of the supplier, your own address, the tax number or VAT identification number of both parties, the date of issue of the invoice, a consecutive invoice number, the quantity and type of goods delivered or services rendered, the net and gross amount, and the applicable tax rate. Therefore, please always check if this information is present on the invoices before claiming the input tax.
Regarding invoices from abroad, there are indeed special regulations to consider. You can also claim the input tax for invoices from abroad, provided that they contain the above-mentioned information and the invoice is issued in Euro. Usually, you also need a VAT identification number of the foreign supplier. Make sure to separately record the input tax from abroad in your accounting to allow for possible inquiries from the tax office.
To avoid errors in input tax refund and prevent possible tax repayments or penalties, I recommend taking the following steps:
1. Regularly check if all information on the invoices is present and correctly transferred to your accounting software.
2. Conduct regular checks of your accounting to detect and correct errors early.
3. Stay informed about current changes in tax law to ensure compliance with all regulations.
4. If you are unsure, consult a tax advisor for professional advice and to avoid possible errors.
I hope this information is helpful and answers your question. If you have any further questions, I am at your disposal.
Sincerely,
Marco Schottmann
