Today our blog is about a lot of money. Three-digit millions, that makes your heart beat faster. And the best thing about it: it’s your money! You have one thing – you could have the other. You understand only railway station? Then we’ll quickly put you on the right track. And I can tell you one thing. The old saying applies: Small cattle also make crap.

300 million Euro – smartsteuer customers get their money’s worth
The cat is out of the proverbial sack. In the last tax season, smartsteuer customers received an unbelievable 300 million euros back from the state through their tax returns. That’s something to be proud of!
And that’s where we wanted to know: What do people do with the money? We asked almost 4,000 customers exactly this question. And what turns out? We are still a thrifty people. Nearly 28 percent of the respondents said that they would simply save the tax refund.

In second place – and that’s not so surprising either – is the holiday. Around one in five (20 percent) used the money to improve their holiday budget. 14 percent want to “treat themselves to something.

500 million euros – the money is waiting for you

So you see, it can be really worth it to do the tax. But let us now move on to the next figure – and it is 200 million euros higher: according to estimates, 500 million euros remain in the treasury because many still do not make their tax returns. And this sum remains in the state coffers every year. Money that taxpayers are entitled to, however. All they have to do is get it.
Why can this happen at all? Well, many Germans don’t have to file a tax return. In the lower part of this blog post it is well explained who has to – and who doesn’t. But there you can also see why everyone should do one anyway. In short: from those who don’t have to do a tax return, the state often can’t get anything. But you as a taxpayer can get something – your money.

Advantages for voluntary taxpayers

First of all, other deadlines apply to them for submission. They have a full four years after the end of a tax year. When you get a taste for it: With our online solution smartsteuer you can do the tax for the last four years. Simply select the appropriate year on this page – and off you go.

But there is another advantage. If you have submitted your tax return and the tax office suddenly wants an additional payment from you, you can simply lodge an objection – and withdraw the entire tax return. Then it’s as if you never had to file it.

But that rarely happens: First of all, in most cases voluntary submitters give money back. In addition, with smartsteuer you can see before the tax is paid whether you can expect a tax refund. If this is not the case, do not send the declaration at all. You will not have paid anything, because with smartsteuer you only pay when you send the data to the tax office.

What does this mean for me?

We would like to repeat ourselves at this point: Everyone should make a tax return. Because those who don’t have to, very often get money back from the state.

The input tax: How the input tax deduction works

Especially in the areas of accounting and tax, it is difficult for many entrepreneurs to keep track of things. As a general rule, every company is subject to sales tax. As an entrepreneur, you are therefore obliged to pay the so-called turnover tax to the tax office. At the same time, there is the right to deduct input tax. This means that the value added tax paid on supplier invoices (input tax) – in the form of the well-known value added tax – may be deducted from a company’s total value added tax liability.

The terms input tax, value added tax and value added tax often cause confusion, as they are often used side by side or even synonymously. But what exactly is meant by these terms? How can the input tax be calculated and what should you urgently consider when filing for input tax? We will explain to you exactly how the input tax and VAT process works.

Input Tax, Value Added Tax and Value Added Tax

The terms input tax, turnover tax and value added tax refer in principle to the same tax regime. The use of the different terms is due to the fact that the designated tax can be viewed from several points of view.

VAT is a colloquial term in Germany, even though it can be found on many receipts. The official term in German legislation is sales tax. Input tax, on the other hand, is the term used to describe the value added tax that entrepreneurs have to pay themselves when purchasing goods or services. If a company is entitled to deduct input tax, it can reduce its own VAT liability with the input tax paid in accordance with ยง 15 of the Value Added Tax Act (EStG) or the input tax is refunded by the tax office (so-called input tax deduction).

The RSM tax service in thailand explains why this is so and how exactly the input tax deduction works.

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