What special regulations apply to input tax for small business owners?
July 21, 2022 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
I am Sebastian Weinert and I run a small business as a small business owner. I am aware that according to § 19 UStG I am exempt from sales tax and therefore do not have to show or pay sales tax. However, I am wondering if I can still claim input tax and what special considerations need to be taken into account.
My current situation is as follows: I use items for my business that are used both for business and personal purposes, such as my car, laptop, and phone. Since I use these items for both business and personal purposes, I am unsure to what extent I can claim input tax.
My goal is to utilize input tax as efficiently as possible in order to reduce my costs. However, I am unsure about the regulations and special considerations for small business owners regarding input tax. I am worried that I may make mistakes in calculating input tax and therefore risk unnecessary tax payments or fines.
Therefore, my specific question to you is: What special considerations apply to input tax for small business owners and how can I ensure that I claim input tax correctly and efficiently? Are there specific requirements or documentation obligations that I, as a small business owner, must follow in order to optimize the use of input tax?
Thank you in advance for your support and advice.
Sincerely,
Sebastian Weinert
Dear Mr. Weinert,
Thank you for your inquiry regarding input tax as a small business owner. I would like to provide you with detailed information so that you can correctly and efficiently claim your input tax.
As a small business owner according to § 19 UStG, you are exempt from sales tax, which means that you do not have to show or pay sales tax. However, you still have the option to claim input tax. Input tax is the sales tax invoiced to you for business purchases. As a small business owner, you can generally claim this input tax to reduce your costs.
The special feature for small business owners is that you do not have to differentiate between business and private use of the purchases when claiming input tax. This means that you can claim the entire input tax invoiced to you for your business purposes, regardless of whether the purchases are also used privately.
To correctly claim input tax, it is important that you carefully keep the corresponding invoices and receipts. You must be able to prove that the purchases were actually made for your business. Additionally, make sure that the invoices contain all the necessary information, such as your name, address, the quantity and type of goods delivered, the gross amount, and the applicable sales tax.
It is also important to note that you can only claim input tax if you have not opted for lump-sum taxation according to § 23 UStG as a small business owner. If you choose lump-sum taxation, you cannot claim input tax.
In summary, as a small business owner, you can claim input tax without having to differentiate between business and private use of the purchases. Be sure to carefully keep all invoices and receipts and check the necessary information. This way, you can ensure that you are correctly and efficiently using the input tax.
I hope this information is helpful to you and I am available for any further questions.
Sincerely,
Roberta Schlattmann
