Lost the receipt: can you still deduct the cost?
Written by Ilias Aarrass6 min read · Last reviewed on 
Written by Ilias Aarrass6 min read · Last reviewed on It happens to every entrepreneur: you incurred business costs, but the receipt is gone. Thrown away, faded in a coat pocket or never received. Does that end the deduction? Not necessarily. For income tax, free rules of evidence apply and you can often substantiate costs another way. For VAT it is stricter: without an invoice meeting the requirements, the input VAT is almost always lost. This article shows what you can still salvage per situation.
Why proof matters so much
As an entrepreneur you have a record-keeping and seven-year retention obligation. If you deduct costs, you must be able to substantiate on request that they were actually incurred and business-related. The burden of proof is on you, not on the tax authority. Without any substantiation the inspector may simply strike the deduction.
Income tax: substantiating is allowed
For determining profit, free rules of evidence apply: any reasonable form of proof counts. Lost a receipt? Work through these steps:
- Request a duplicate. Web shops, wholesalers and telecom providers have invoices ready digitally; a physical shop can often reprint a receipt too.
- Get the bank statement. A card payment to a hardware store on a weekday morning, linked to a job in your calendar, already makes the expense far more plausible.
- Collect context: the quotation or invoice of the job you bought it for, an email confirmation, a photo of the purchased material in use.
- Record a note yourself immediately: date, supplier, amount, what and for which purpose. The fresher the record, the more credible.
VAT: virtually no deduction without an invoice
For VAT deduction, an invoice in your name meeting the invoice requirements is in principle mandatory. A bank statement is no substitute for VAT purposes: it shows no VAT amount and no supplier VAT number. Only small amounts have leeway: up to € 100 including VAT a simplified invoice suffices, an ordinary till receipt showing the supplier's name, the date, a description and the VAT amount or rate.
What you can still salvage per situation
Cash expenses without any trace are the hardest. If you handle a lot of cash, keep a watertight cash administration; that prevents one lost receipt from becoming a pattern of gaps.
| Situation | Cost deduction (income tax) | VAT deduction |
|---|---|---|
| Duplicate invoice obtained | Full | Full |
| Only card payment on bank statement | Usually substantiable | No |
| Till receipt up to € 100 incl. VAT | Full | Yes, simplified invoice |
| Paid cash, nothing on paper | Weak; only with strong context | No |
Prevention: photograph every receipt immediately
The real solution is a habit: photograph every receipt right at the till or in the car, and forward emailed invoices to your bookkeeping environment. A digital copy is legally valid as evidence, as long as it is legible and complete. Thermal paper fades within months; the photo then beats the original.
Frequently asked questions
Is a card slip enough proof?
For income tax it certainly helps, especially combined with context such as a calendar entry or project invoice. For VAT deduction a card slip is insufficient: it lacks the VAT amount and the supplier's details.
May I estimate costs when receipts are missing?
Structural estimating is asking for trouble: the inspector may strike unsubstantiated items. For a single small, demonstrably usual expense with bank proof it rarely becomes an issue in practice. Do not make it a habit.
Does a digital photo of the receipt count as original?
Yes. You may keep your records digitally, provided the copy is legible, complete and accessible throughout the retention period. So scan or photograph receipts freely and discard the thermal original.
What happens in an audit with missing receipts?
One gap is rarely a disaster; the inspector looks at the overall picture of your records. If documents are structurally missing, they can refuse deductions, correct the VAT and in the extreme case reject your records and estimate the profit themselves. Also read the article on the tax audit.
The shop no longer exists. Now what?
Then no duplicate can be obtained and you build the proof from what you do have: the payment on your bank statement, photos, correspondence and the logical link to an assignment. For income tax that is often enough; you let the VAT deduction go in that case.
Does this also apply to small amounts like parking?
Yes, but practically: parking apps and public transport statements are already fine proof in themselves, showing payment, time and location. Link them to your mileage log and you are set.
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
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