- The BFH held that self-employed professionals who voluntarily keep accounting books and prepare financial statements cannot use cash-basis VAT under Section 20(1) Sentence 1 No. 3 UStG.
- Cash-basis VAT is meant to help businesses not required to keep records avoid tracking unpaid receivables for VAT.
- If a professional chooses voluntary double-entry accounting, that justification no longer applies.
- They must then use accrual-based VAT, like incorporated companies.
Source: nwb-experten-blog.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
