Calculation input tax key
NPOs can also "reclaim" the input tax they have paid. In contrast to commercial enterprises, however, the scope of associations or foundations is often divided into four spheres (non-material sphere, asset management, special-purpose operation, commercial business operation). For services that are acquired exclusively for the non-material sphere or are exclusively related to tax-exempt sales, an input tax deduction is excluded.
In practice, however, a proper allocation of input tax into deductible and non-deductible portions is very complex.
This is how we help you
We help you to correctly allocate input tax amounts to the individual spheres (e.g. by setting up cost center accounting) and support you in the question of a suitable allocation key for input tax if tax-exempt sales are carried out in addition to taxable sales.