non-deductible input tax

the non-deductible input tax denotes the part of the input taxthat a company from his VAT liability may deduct. This occurs when certain expenses or expenditures not tax deductible are. In SAP Business One the non-deductible input tax can be specifically recognised, posted and evaluated in order to Correct tax treatment ensure.

E-invoicing in Germany: How to implement the obligation with SAP Business One

1. definition

Non-deductible input tax arises when a company Input tax paid on expenseswhich are not recognised as Operating expenses recognised or for which the Input tax deduction excluded by law is.

2. reasons for non-deductible input tax

Hospitality costs: Part of the hospitality costs are not tax-deductible and the input tax on them cannot be deducted either (e.g. in Germany 30 % of the hospitality expenses).
Non-operating expenses: Private or non-business-related expenses do not entitle you to deduct input tax.
Certain goods and services: For some goods and services, input tax deduction is excluded by law (e.g. luxury goods or certain vehicle costs).

3. posting in SAP Business One

SAP Business One offers functions for the automated recording and posting of non-deductible input tax:

account assignment template: Enable the automatic posting of a defined percentage as non-deductible input tax.
G/L accounts: Separate accounts can be created for non-deductible expenses and the corresponding input tax.
Tax code:
- For each tax code, a non-deductible account and a Non-deductible percentage be deposited.
- When posting, the non-deductible input tax is posted to the defined account.

4. effect on value added tax

the non-deductible input tax increases the VAT liability of the company, as it cannot be offset against the VAT collected.
Companies can only use the Deductible input tax offset against the sales tax collected in order to minimise their Payment burden to determine.

5. input tax code and DATEV

Input tax code: The correct selection of the tax code in SAP Business One is crucial in order to treat input tax correctly.
DATEV automatic accounts:
- For automatic accounts No tax key must be specified.
- For non-automatic accounts, a BU key (booking key) be used.

6. reports and analysis

In SAP Business One The non-deductible input tax can be deducted in various Financial reports be identified and analysed in order to Tax transparency and to increase the Correct demarcation ensure.