Processing incoming invoices in a legally compliant manner - this is how it works
What you need to know and observe when dealing with incoming invoices in order to avoid tax law problems is explained in our summarised white paper. Similar to outgoing invoices, there are a number of pitfalls and tips that you as an accountant must be aware of. We provide you with helpful, practical tips for a tax-compliant implementation. This white paper is only available in German.
Eingangsrechnungen rechtssicher bearbeiten – so geht‘s
As soon as a company starts its operations, it receives and creates invoices. When managing these incoming and outgoing invoices, some regulations must be followed to avoid problems with the tax office. In addition, companies should follow best practices to make invoice management as efficient and simple as possible.
An A/P invoice refers to an invoice received by the company because it has purchased services or goods from suppliers. The document serves as proof that a liability has been incurred and provides a basis for the supplier to establish default if the company fails to pay on time.
It is in the company's interest to check incoming invoices for formal correctness. Why this needs to be done? If the incoming invoices are incorrect, the entrepreneur forfeits the right to deduct input tax.
For each incoming invoice with VAT shown, entrepreneurs, who must in principle be entitled to deduct input tax, may claim the amount of VAT shown on the invoice for themselves. In this way, they can reduce the payment burden to the tax office arising from the VAT incurred on their own services or supplies. Incoming invoices must be checked, regardless of their form: Whether the documents are available in an online portal, as a PDF or in physical form is irrelevant for the obligation to audit.
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