Input Tax Revision

The input tax revision includes the period of the construction phase of an asset under construction (AuC) up to when the asset is first used.

Input tax revision
If a concluded provisional agreement exists for a rental unit, you can deduct input tax from the acquisition/production costs.

The actual input tax deduction amount, however, can only be definitely determined when the object is used for the first time. For this reason, it is necessary in the construction phase to revise the original input tax distribution up to the end of the construction phase when the option rate changes.

Input tax distribution and account determination
The input tax amount entered or calculated with the posting is redistributed in a deductible and a non-deductible amount by means of the steps Option rate determination and Input tax distribution and making use of the currently valid option rate of the correction items.

Input Tax Distribution

Account Determination

In this phase, the option rate valid in the month of the posting date is used.

An input tax revision posting is created for the difference between the old and new input tax distribution.

The non-deductible input tax is posted to the acquisition/production costs, in other words the asset value increases or is reduced.