How can I reduce my taxes as a small business owner?
February 25, 2024 | 50,00 EUR | answered by Anna Richter
Dear tax lawyer,
My name is Verena Michels and I am a small business owner who has been running my own online business for several years. In recent years, I have been able to steadily increase my revenue, which makes me very happy. However, I have noticed that my tax burden has also increased accordingly and I would like to know how I can reduce my taxes as a small business owner.
The current situation is as follows: I regularly pay my sales tax as a small business owner and have fulfilled all other tax obligations. However, I believe that there must be ways to optimize my tax burden and achieve more profit for my company.
My concern is that I may be overlooking potential tax benefits or savings opportunities and thereby unnecessarily paying money to the tax authorities. As a small business owner, it is especially important for me to operate efficiently and take advantage of every opportunity for tax savings.
Therefore, my question to you is: What specific measures or strategies are available to reduce my taxes as a small business owner? Are there any special tax regulations or depreciation options that I have not yet taken advantage of? I am grateful for any tips or advice on how to optimize my tax situation and lead my business to long-term success.
Thank you in advance for your help and support.
Sincerely,
Verena Michels
Dear Ms. Michels,
Thank you for your inquiry regarding optimizing your tax situation as a small business owner. I am pleased that you are actively engaging with this topic and looking for ways to reduce your tax burden.
As a small business owner, you have probably heard of the small business regulation according to § 19 UStG, which states that you are exempt from sales tax as long as your annual turnover is below 22,000 euros. This regulation allows you not to charge sales tax and therefore not have to submit sales tax returns. However, if your turnover exceeds this amount, you should consider whether it is worth voluntarily waiving the small business regulation and invoicing sales tax. This way, you can claim input tax and potentially reduce your tax burden.
Furthermore, you should consider claiming all possible business expenses as tax-deductible. These include costs for office supplies, telephone and internet expenses, advertising, further education, or professional literature. Depreciation on business purchases such as computers, printers, or office furniture can also reduce your tax burden. Make sure to carefully keep all receipts and invoices to be able to prove your expenses.
Another way to reduce your taxes as a small business owner is to create reserves. For example, invest a portion of your profit in a business reserve or retirement fund. This can help reduce your tax burden and at the same time provide for the future.
It is also advisable to regularly seek advice from a tax advisor or tax expert to not overlook any tax benefits or savings opportunities. A professional can analyze your individual tax situation and recommend tailored solutions and strategies to optimize your tax burden.
I hope these tips will help you improve your tax situation as a small business owner. If you have any further questions or require more detailed advice, I am at your disposal.
Sincerely,
Anna Richter
Tax Lawyer
