Tax tip: Electronic donation receipt

The Christmas period and the days off around the turn of the year are always a time for donations. There is a certificate for this, which can also be issued electronically. This offers donors numerous advantages. The details of the electronic donation receipt are governed by paragraph 50, section 2 of the Income Tax Implementation Ordinance (EStDV).

One advantage is the reduction in paperwork. Previously, donors had to collect and store all donation receipts in paper form, which often led to a large pile of documents. This effort is eliminated if the certificate is sent directly online by each donation organisation to the tax office, provided the donor authorises the organisation to do so. This is particularly advantageous for donors who donate regularly and therefore have to manage many receipts. It also speeds up the entire process.

The simple handling in the tax return is a further advantage. Electronic donation confirmations can be taken into account directly using the pre-filled tax return. Ideally, the tax office will automatically take the donations into account, as they are now directly available to the tax office. The environment also benefits from electronic donation confirmations. Less paper consumption means fewer trees are cut down and less energy is required to produce the confirmation, as well as less postage. This also means less administrative work for the donation organisations, which can benefit the purpose of the donation.

Another advantage of the electronic donation confirmation is that these receipts are not lost and therefore the donation deduction is guaranteed. A one-off confirmation of the electronic donation receipt directly to the tax office therefore ensures that your donations are recognised for tax purposes.

However, not every donor is familiar with the digital world. Older people in particular may find it difficult to manage electronic donation receipts. This is where donation organisations could provide support, promote electronic donation receipts and motivate donors to use them. It is important that these organisations provide clear guidance and assistance to make the transition to digital donation receipts as smooth as possible. Of course, tax advisors can also support donors in this process.

Despite some challenges, the positive aspects clearly outweigh the negative ones. Donors should therefore not shy away from using this modern and efficient method. However, it is important that donation organisations help their donors and ensure that all necessary security measures are taken.