An invoice arrives as a PDF attachment, the employee prints it out and files it. This is what happens countless times every day in German companies. However, from a tax point of view at least, this is a waste of effort. Because the printout of a PDF file is not a valid purchase invoice, and this means that no input tax deduction in accordance with § 15 Para. 1 of the German Turnover Tax law is permitted. In fact, the company must rather be prepared to have to pay back the inadmissibly deducted input tax after the next audit. In accordance with §14 Para. 3 of the Turnover Tax Law, special provisions apply to electronic invoices - and these also include PDF invoices. Anyone who does not observe these regulations is risking his right of reimbursement, and there are no exceptions even for small amounts.
Printing out PDF invoices is a waste of paper
"Whether an invoice is electronic or in paper form, most companies simply file everything that arrives and that is that - well, in theory anyway. From a tax point of view, however, it does not make any difference whether the bookkeeper prints out the PDF invoice and files it or makes a paper aeroplane out of it. The legal situation is clear, a self-printed PDF purchase invoice is not a valid invoice in accordance with turnover tax law," explains Retarus Managing Director Martin Hager. "Our experience in project business shows that only every fifth company has currently implemented a workflow for electronic invoices. The rest have to hope that the tax auditor later turns a blind eye so that there are no high demands for input tax repayment," continues Martin Hager.
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The right way to deal with PDF invoices
Every invoice that is sent electronically must be provided with a qualified electronic signature by the sender. Before claiming the turnover tax, the recipient must validate this signature, document the validation check and archive the PDF electronically together with the signature and validation report. As far as the tax office is concerned, only the PDF file with signature is a relevant invoice document. On request, the invoice recipient must make this available to the tax office, provide proof of the successful signature validation, and be able to perform this again if necessary.
About Retarus
As a provider of professional messaging solutions, the Retarus Group offers services for electronic corporate communication and business processes. The products and services are aimed at both large and medium-sized companies. They are designed to optimise business process communication and combine maximum security with top-level performance. Retarus implements its solutions either directly on the user's premises or hosts them as a managed service. Retarus solutions are used every day by over 3,000 international customers, including Allianz, Bayer, Deutsche Bahn, Honda, O2, Puma, Linde and Sony. Around 170 employees at the headquarters in Munich and in the subsidiaries in Lyon, Milan and Zurich are dedicated to ensuring the highest levels of customer satisfaction.
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