Who is entitled to deduct input tax?

Who is entitled to deduct input tax

• An input tax deduction is practically only available for entrepreneurs, as this is another term for the word sales tax. As an entrepreneur, you first pay a supplier the entire invoice including sales tax, but you can do this yourself have the tax office reimbursed when calculating input tax, so that in the end you do not pay this sales tax have to.

• Every end consumer has to pay the sales tax, because he has no way of claiming it from the tax office. However, as an entrepreneur, you are responsible for paying the sales tax to the tax office, even if you only have to pay a small amount of sales tax in the end.

Special features and characteristics

• The person who sells the goods is always responsible for paying the sales tax to the tax office. The payment of the sales tax always happens in the middle of the month after next on which you received the sales tax from the end consumer. You only have to pay the difference between the sales tax owed to the tax office and the deductible input tax.
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• Put simply, you pay your supplier the sales tax, which you get back from the tax office as the person entitled to input tax deduction. The end user pays the sales tax to you, and this is the amount you have to pay to the tax office. Since these two amounts can overlap computationally, you may not use your paid Deduct sales tax from sales tax paid by the customer, giving you a financial benefit brings.

• In order for you as an entrepreneur entitled to deduct input tax to be able to collect the sales tax from the tax office again, you must The supplier will issue you an invoice that contains all the necessary characteristics that the tax office requires from you required. Invoices up to 150 euros incl. VAT the name and address of the supplier, the exact description of the goods as well as the quantity, the gross amount and the tax rate or contain a reference to a possible tax exemption from sales tax and the invoice date.


What does entitled to input tax deductible mean? - Useful information

To be entitled to input tax deduction means that you can deduct VAT, which is applicable to both ...

• In the case of invoices between 151 and 10,000 euros, the name and address of the customer, the net amount as well as the amount of sales tax, the supplier's UN number and the current invoice number are also available be. If the amount is over 10,000 euros, the customer's UN number must also be listed.

• The UN number is urgently required when it comes to sale or purchase. Sales of substances of the dangerous goods class. A UN number is also required in the invoice papers so that customs and other authorities can immediately identify what type of substance it is.