Which tax returns do I need to file as a small business owner?
March 23, 2023 | 50,00 EUR | answered by Ulrike Voss
Dear Sir or Madam,
I have been operating a small photography studio as a small business owner for three years and have never filed a tax return before. As my business is slowly growing, I am now thinking about my tax obligations and wondering which tax returns I need to file as a small business owner.
So far, I have only submitted quarterly VAT returns to the tax office, as I fall under the small business regulation according to § 19 UStG and therefore do not charge VAT. But what other tax returns are required? Do I need to file an income tax return, even though I have only minimal earnings as a small business owner?
I am worried that I may be violating tax regulations because I am not sure which returns I need to file. Additionally, I fear that in the event of an audit by the tax office, I may have to pay fines or back taxes if I do not fulfill my tax obligations properly.
Can you please explain to me which tax returns I need to file as a small business owner and how I can best prepare for them? Are there any specific deadlines I need to meet? What consequences could I face if I do not fulfill my tax obligations correctly?
Thank you in advance for your assistance.
Sincerely,
Uwe Hofstetter
Dear Mr. Hofstetter,
Thank you for your inquiry regarding your tax obligations as a small business owner. It is understandable that you are thinking about which tax returns you need to file and how best to prepare for them. I am happy to explain the key points to you.
As a small business owner according to § 19 UStG, you are exempt from value-added tax and therefore do not have to show VAT on your invoices. This means that you must submit quarterly VAT returns to the tax office to report your sales. These returns are used by the tax office to keep track of your sales and related tax obligations.
In addition, small business owners are generally also required to file an income tax return, even if they do not show VAT. In the income tax return, you must declare all your income and expenses to determine your earnings from the photography studio. It is important to keep and organize all relevant documents such as profit and loss statements, cash books, invoices, and receipts carefully.
There are specific deadlines that you must adhere to when filing tax returns. VAT returns must be submitted quarterly, usually by the 10th of the following month. The income tax return is typically due by July 31st of the following year, unless you hire a tax advisor, in which case the deadline is extended to February 28th of the following year.
If you do not fulfill your tax obligations properly, you may face penalties or additional payments from the tax office. It is therefore important to maintain all necessary documents carefully and comply with the deadlines to avoid any potential consequences.
I recommend you to consult with a tax advisor or a specialized tax lawyer early on to receive individual advice and ensure that you fulfill your tax obligations correctly.
I hope this information was helpful to you. Please feel free to reach out to me if you have any further questions.
Best regards,
Ulrike Voss
Tax Law Attorney
