Which expenses can be claimed as input tax?
February 14, 2022 | 35,00 EUR | answered by Marco Schottmann
Dear tax advisor,
My name is Günther Ley and I run a small business in the field of IT services. Lately, I have been focusing intensively on the topic of input tax, as I have realized that I may not have correctly claimed some expenses as input tax.
So far, I have mainly deducted expenses for office supplies, rent for my office, telephone and internet costs, as well as professional literature as input tax. However, I am now wondering if there are other expenses that I should consider.
My biggest concern is that I may be giving away money by not claiming expenses as input tax, even though they would actually be deductible. I want to make sure that I take full advantage of all opportunities for tax savings and avoid making any mistakes.
Could you please explain to me which expenses can still be claimed as input tax? Are there specific categories of expenses that I may not have thought of? I would be very grateful for specific advice and tips on how to calculate and use my input tax correctly.
Thank you in advance for your support.
Best regards,
Günther Ley
Dear Mr. Ley,
Thank you for your question and your interest in the topic of input tax. As a tax advisor specializing in input tax, I am happy to assist you with any questions you may have.
Firstly, it is important to understand what input tax is. Input tax is the sales tax that you, as a business owner, pay for your business expenses. You can claim back this sales tax from the tax office by deducting it as input tax. By doing so, you can deduct the input tax as business expenses from the sales tax you collect from your customers, thereby reducing your tax burden.
You have already mentioned some typical expenses that are deductible as input tax, such as office supplies, rent, telephone and internet costs, as well as professional literature. However, there are other expenses that you can claim as input tax. These include expenses for business trips and overnight stays, training costs, insurance premiums, advertising expenses, fees for permits and licenses, as well as the costs for using services such as cleaning and maintenance services.
It is important to keep all receipts for your business expenses carefully and to check whether the VAT shown on them is deductible as input tax. Even for items used for both business and personal purposes, such as a privately used telephone line, you can only claim the input tax proportionately.
To calculate and utilize your input tax correctly, I recommend keeping accurate bookkeeping records and regularly reviewing your business expenses. It may also be helpful to seek advice from a tax advisor to ensure that you are maximizing all opportunities for tax savings and avoiding any mistakes.
I hope this information is helpful to you and I am available for any further questions you may have. Thank you for your trust and attention.
Best regards,
Marco Schottmann
Tax Advisor
