Output VAT and input VAT from real monthly evidence

The basic model

Under §15 UStG, input VAT deduction has conditions, including an invoice that meets the applicable requirements for many domestic purchases. Business use, exempt output activity and special restrictions can limit deduction. Do not treat the presence of “VAT” on a receipt as sufficient proof.

Simple example

A business invoices a taxable service for €1,000 plus €190 VAT. In the same period it has an eligible business purchase of €200 plus €38 VAT. In the simplest case, the €190 is output VAT and the €38 is deductible input VAT, leaving €152 before other transactions and adjustments. This example assumes the stated rates, documents, timing and deduction eligibility are correct. Change any assumption and the result may change.

Three sources that create different VAT work

The third case should remain a focused exception when sources conflict or facts are missing. A previous supplier treatment, bank country or dashboard label is not enough to decide it. DeinHans prepares the evidence and review context; it does not publish private tax mappings or autonomously select the final treatment.

A document-first VAT check

1. Identify supplier, customer and their business roles.
2. Describe the actual good or service and where it was supplied.
3. Verify invoice data, amounts, currency and tax statement.
4. Establish business purpose and any mixed or private use.
5. Determine the relevant period under the applicable method.
6. Check exemptions, reverse charge, foreign VAT and correction events.
7. Escalate uncertain classifications before filing.

Common mistakes

• Deriving VAT from the bank amount without an invoice.
• Claiming input VAT from foreign tax as if it were German VAT.
• Ignoring credit notes and later refunds.
• Treating reverse charge as “no VAT” rather than a shifted liability mechanism.
• Applying one rate because a similar vendor used it previously.

Professional boundary: VAT depends on the specific supply, parties, place, documentation and period. A qualified tax adviser should review uncertain, cross-border, exempt or material cases.

Responsibility split

The owner provides complete facts and documents and explains business use. Software can extract stated values, connect transactions to evidence and surface inconsistencies; it should not invent missing tax facts. The accountant or tax adviser confirms the legal treatment, deduction eligibility, reporting fields and corrections. Approval should preserve who reviewed what and when.

Reconcile the VAT evidence

At period end, bridge recorded sales to issued invoices and credit notes, and bridge purchase VAT to the invoices actually used for deduction. Reconcile VAT control balances with the return preparation and list manual adjustments separately. A return can be arithmetically balanced while using an incomplete sales population, so include source coverage and document-count checks.

Trace a sample in both directions: from an invoice into the accounting and return, and from a return total back to invoices. Review gaps such as cancelled invoices, corrected documents, imports, reverse-charge services and purchases used partly for non-deductible activity.

When facts change later

A later refund, credit note, invoice correction or change in use can affect an earlier conclusion. Keep the original document, link the new evidence and record which reporting period or correction process the adviser approved. Do not edit the historical invoice image or replace the previous decision without a trace.

For recurring vendors, confirm that supplier entity, service and invoice tax statement remain the same. The fact that prior invoices were treated consistently is context, not proof for the current one.