Which taxes do I need to consider as an online retailer?
March 21, 2022 | 50,00 EUR | answered by Ulrike Voss
Dear tax lawyer,
I am Edith Herrmann and have been running an online shop for some time, where I sell various products. So far, I have not delved deeply into the topic of taxes, as I assumed that my income is still below the tax-free threshold. However, I have now heard that as an online seller, there are specific taxes that I need to consider.
Currently, I regularly generate sales through my online shop and need to pay taxes on this income. However, I am not clear on which taxes exactly apply to me and how I can correctly pay them. I am concerned that I may be evading taxes or calculating them incorrectly, which could lead to legal consequences.
Therefore, my question to you is: What taxes do I need to consider as an online seller and what steps do I need to take to correctly pay them? Are there any specific regulations or tax-free thresholds that I can take advantage of as an online seller? I would like to ensure that I fulfill my tax obligations correctly and avoid legal problems.
Thank you in advance for your support and advice.
Sincerely,
Edith Herrmann
Dear Ms. Herrmann,
Thank you for your inquiry regarding the tax obligations as an online retailer. It is understandable that you are concerned about whether you are doing everything correctly and not making any tax mistakes. I would like to explain to you in detail which taxes you need to consider as an online retailer and what steps you should take to pay them correctly.
As an online retailer, you are generally subject to the same tax obligations as brick-and-mortar retailers. The most important taxes you need to consider as an online retailer are value-added tax, income tax, and possibly trade tax.
1. Value-added tax: If you sell goods or services as an online retailer, you generally have to calculate value-added tax on your sales and pay it to the tax office. The standard value-added tax rates of 19% and 7% apply. However, there are also special regulations for online commerce, especially concerning sales to other EU countries.
2. Income tax: Income tax is calculated on the profit from your online business. You need to compare your business income and expenses to determine your profit, which is then subject to income tax.
3. Trade tax: Under certain circumstances, you may also have to pay trade tax as an online retailer. However, this depends on your profit and the location of your business.
To fulfill your tax obligations correctly, I recommend keeping regular records and storing all relevant documents and receipts. Furthermore, you should inform yourself early on about the tax regulations and consider consulting a tax advisor to ensure that you pay all taxes correctly.
It is important that you take your tax obligations seriously and do not evade taxes to avoid legal problems. If you are unsure or have further questions, I am available for a personal consultation.
I hope that this information has been helpful to you and wish you great success with your online shop.
Sincerely,
Ulrike Voss
Tax lawyer
