Can I also claim input tax for private expenses?
February 5, 2024 | 30,00 EUR | answered by Felix Schönecker
Dear tax advisor,
my name is Uwe Schulze and I have a question regarding input tax deduction. I run a small sole proprietorship and regularly purchase goods and services for my business. Now I am wondering if it is possible to claim input tax for private expenses as well.
My current situation is as follows: I have so far kept my business expenses separate from my private expenses and only claimed input tax for business purposes. However, I have recently made more private expenses where VAT was also incurred. I am now wondering if I can also claim this input tax, as I use the goods and services partially for my business.
My concern is that I may have to make tax payments if I claim input tax for private expenses and this is not allowed. I want to take advantage of the tax benefits that are due to me, but at the same time avoid making mistakes and getting into tax problems.
Could you please provide me with information on whether it is possible to claim input tax for private expenses? If not, what alternatives are there to minimize the tax burden? I would greatly appreciate your help and advice.
Thank you in advance.
Best regards,
Uwe Schulze
Dear Mr. Schulze,
Thank you for your question regarding input tax deduction. As a tax advisor specializing in value-added tax, I am pleased to assist you with your concern.
It is important to know that input tax deduction is only possible for business expenses. Private expenses cannot be charged with input tax as they are not related to the business. This means that you can only claim the VAT on goods and services that are used for your business.
In your case, if you have incurred private expenses that also include VAT, you cannot claim this input tax. It is crucial to have a clear separation between business and private expenses to avoid tax issues. If you claim input tax for private expenses, you risk tax repayments and possibly penalties from the tax office.
However, there are some ways to minimize the tax burden without including private expenses in the input tax deduction. One option is to optimize your business expenses and accurately record all possible input tax amounts. This can help minimize the input tax burden on your business purchases and reduce your tax liability.
Furthermore, it is advisable to seek advice from a professional tax advisor to maximize all tax benefits and avoid errors. A tax advisor can provide you with personalized tips and recommendations to optimize your tax situation and minimize your tax burden.
I hope this information has been helpful to you. If you have any further questions or would like a personal consultation, I am happy to assist you.
Best regards,
Felix Schönecker
