Definicja input tax correction

German law

A method used for complying with the German Sales/Purchases Tax Law (§15a (1) UstG). If the decisive factors leading to the original input tax deduction change significantly at a later date, then the input tax must be corrected, provided that trivial amount limits set by law (§44 UstDV) were exceeded.

The input tax is corrected dependent on the change in the option rate. This means that over a time period of up to ten years, the system posts the proportional difference between the actually deducted input tax and the input tax that is really deductible based on the current option rate.