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Allocation of Input Tax Based on Sales Ratio and Application of Overall Turnover Key

  • The text discusses the allocation of input tax based on the ratio of turnover according to § 15 Absatz 4 Satz 3 Umsatzsteuergesetz (UStG).
  • It mentions the use of the overall turnover key for this allocation.
  • Changes to the Umsatzsteuer-Anwendungserlass are discussed.
  • An application regulation is provided.
  • The text also mentions the use of other allocation keys if they provide a more precise result.
  • The selection of the allocation method is the responsibility of the entrepreneur, but it can be reviewed by the tax office.

Source: bundesfinanzministerium.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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