Decision on assignment to company assets

Soon is the 31st of May again. For the filing of the tax return, this period is no longer decisive. However, the deadline is a non-renewable period for another important VAT option!


Did you buy or produced an item in 2018 that you use both for your business as well for private purposes?If so, the following statements for the assertion of an input tax deduction are very important for you.


If an item is to be used both for business purposes and for private purposes, there are the following three variants of an allocation to company assets depending on the actual use:


1.         Allocation to company assets at 100% with at least 90% business use

2.         Allocation to private assets to 100% with at least 90% private use

3.         Allocation to company assets to the extent of actual business use for business use between 10% and 90%


The allocation of a mixed-use item (No. 3) to the company assets must be carried out actively by the entrepreneur. Otherwise, the item is classified as a private asset.


The at least proportionate allocation is the basic requirement for an at least proportionate input tax deduction! The allocation decision must be made and documented first and foremost directly at the time of receipt of the service, for example via the input tax deduction in the advance VAT return. If no advance registrations have to be created, then the allocation decision is either to be documented by input tax deduction with the annual sales tax return or informally, for example by e-mail to the tax office. This has to be done no later than 31.05. of the following year. The deadline is not renewable.


If proof of allocation is provided by mere written communication, the scope of the business allocation should also be included.


The allocation may also be meaningful for so-called small entrepreneurs within the meaning of § 19 UStG (VAT Act), if the entrepreneur later opted for standard taxation and can take possibly a remaining input tax deduction in the context of the input tax correction according to § 15a UStG.


In the case of a building that is manufactured by the taxpayer over a multi-year construction phase, it must be ensured that the allocation decision until 31.05. of the following year after the beginning of the construction phase is available to the tax office; as a precaution, it should be repeated until the completion of manufacture.


If you have any comments, questions or implementation difficulties, please contact us!

SKS Steuerberater Sonkin, Seifert and Partner mbB

Office Berlin

Phone: +49 30 308 743 74
Fax: +49 30 308 743 75
E-Mail: info@sks-stb.de
SKS Steuerberatung Berlin
Schlüterstraße 38
DE-10629 Berlin

Office Dresden

Phone: +49 351 563 94 00
Fax: +49 351 563 940 99
E-Mail:  info@sks-stb.de
SKS Steuerberatung Dresden
Glacisstraße 4
DE-01099 Dresden

Office Kiew

Fax: +38 44 2878846

E-Mail: info@sks-stb.de


SKS Steuerberatung Kiew

Sholudenko Straße 3

Business-Center “Kubik-2”

UA-04116 Kiew