{"id":1009,"date":"2020-09-11T11:57:04","date_gmt":"2020-09-11T09:57:04","guid":{"rendered":"http:\/\/interstellar.accountable.de\/?p=1009"},"modified":"2023-04-27T11:16:43","modified_gmt":"2023-04-27T09:16:43","slug":"what-should-be-included-on-all-incoming-invoices","status":"publish","type":"post","link":"https:\/\/interstellar.accountable.de\/en\/blog\/what-should-be-included-on-all-incoming-invoices\/","title":{"rendered":"What should be included on all incoming invoices?"},"content":{"rendered":"

Managing incoming invoices is part of everyday life for many self-employed people and is an important part of their own accounting. However, it is essential that all invoices received are complete and contain all the necessary components in order to be officially logged as incoming invoices because only right invoices can be used for tax deductions in Germany.<\/span><\/p>\n

In this article you will learn what should be included on any incoming invoice, how long you should keep your receipts and how you can reclaim the VAT you have paid.\u00a0<\/span><\/p>\n

What is an incoming invoice?<\/span><\/h2>\n

An incoming invoice is any invoice that is issued to you. This can be the receipt for a restaurant visit with a client or the invoice for a new business expense, like a computer or phone.\u00a0<\/span><\/p>\n

On the other side are your outgoing invoices, which you issue to your customers for the goods or services you deliver.<\/span><\/p>\n

Incoming invoices and VAT<\/span><\/h2>\n

If an incoming invoice includes VAT (value-added tax), you can reclaim this cost on your VAT return. However, this is only possible if you pay VAT yourself and have not registered as a small business.<\/span><\/p>\n

\ud83d\udd16\u00a0 The small business classification exempts some self-employed people from paying and reporting VAT, as long as their annual income does not exceed 22,000 EUR in their first year of self-employment and 50,000 EUR in their second year.\u00a0<\/span><\/p>\n

If this does not apply to you, you must show VAT on your outgoing invoices and pay it to the tax office monthly or quarterly, depending on what your local tax office decides is best for your circumstances.\u00a0<\/span><\/p>\n

The good thing about this is that you can also reclaim the VAT you have paid on any business expenses.<\/strong> You simply enter the total amount VAT you have paid in the advance VAT return. <\/span>Of course, you can’t just claim to have incurred an expenditure \u2013 you must be able to prove it with an invoice.<\/span><\/p>\n

Incoming invoices must be stored for 10 years<\/span><\/h2>\n

You are legally obliged to keep your receipts for a period of 10 years<\/strong>. This way, you can easily prove to the tax authorities the VAT you have paid and reclaimed, even in the event of any queries at a later date.<\/span><\/p>\n

Missing invoices can have consequences for you and your business. And incorrect incoming invoices where, for example, some mandatory information has not been included, can lead to additional payments to the <\/span>Finanzamt<\/span><\/i> (tax office).\u00a0<\/span><\/p>\n

Therefore, you should always check both your own invoices, as well as all incoming invoices, to ensure they are complete and compliant.<\/span><\/p>\n

\ud83d\udca1 Tip from Accountable<\/b>: In our app you can simply take a photo of your incoming invoices and register a payment. This way, you will have all your receipts in one place, even years later.<\/span><\/p>\n

What must be included on an incoming invoice to deduct it<\/span><\/h2>\n

In order for an invoice to be official and be able to offer you any advantages come VAT time, it must contain certain mandatory information.<\/span><\/p>\n

These elements include:<\/span><\/p>\n