Can I get a refund of the value-added tax for purchased goods?
September 9, 2022 | 40,00 EUR | answered by Emma Wagner
Dear Tax Advisor,
My name is Peter Mattes and I run a small business that sells goods. Lately, I have made some larger purchases and I am wondering if I can get a refund on the VAT for these purchased goods.
The current situation is that as a business owner, I naturally charge VAT on my sales and remit it to the tax office. When I make purchases, I also pay VAT, which is specified in the invoices from the suppliers. I have heard that under certain circumstances it is possible to recover this input tax.
The current state is that I have not yet applied for an input tax refund, as I am not sure exactly how it works and if I am even eligible. My main concern is to reduce my costs and run my business more efficiently. Therefore, I am now looking for ways to get the VAT back on my purchases.
My worry is that I may be giving away money by not claiming the input tax. As a small business owner, every cent is valuable to me, so it is very important for me to know if and how I can get a refund on the VAT for my purchased goods.
So my specific question to you is: Can I, as a business owner, get a refund on the VAT for purchased goods and if so, how does it work? Are there certain requirements that I need to meet to recover the input tax? I would greatly appreciate your help and advice on this matter.
Thank you in advance for your support.
Sincerely,
Peter Mattes
Dear Mr. Mattes,
Thank you for your inquiry regarding the input tax refund for purchased goods as a business owner. I am pleased that you are exploring this issue and looking for ways to reduce your costs and run your business more efficiently.
As a business owner, you have the option to claim back the VAT on your purchased goods. This is called an input tax refund and it is designed to reduce the burden of VAT and improve the liquidity of your company.
To receive the input tax refund, you must meet certain requirements as a business owner. Firstly, the purchased goods and services must be used for your business and have a direct connection to your taxable turnover. This means that the input tax can only be claimed for business expenses incurred in the course of your business activities.
Furthermore, the invoices from your suppliers must be correct and properly issued. This means they must contain all the necessary information, such as your name and address, the quantity and type of goods delivered, the invoice amount, and the VAT amount. Only invoices that meet these requirements can be used to claim the input tax.
To claim the input tax refund, you must submit an input tax refund application to the tax office. This application usually needs to be filed electronically through the Elster portal. You must include all relevant invoices and receipts that support your expenses. The tax office will then review your application and refund the input tax if all requirements are met.
It is important to regularly check and claim your input tax refund entitlements to not miss out on any financial benefits. As a business owner, you can improve your liquidity and reduce your costs in this way.
I hope this information helps you and answers your question regarding the input tax refund for purchased goods. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Emma Wagner
Tax Advisor
