Ask a tax advisor on the topic of Balance sheet

Craft business balance sheet required

November 7, 2011 | 20,00 EUR | answered by Michael Herrmann

Dear Sir or Madam,

I have the following question:

I have been running a small one-man renovation business (tiles and interior decorator) for 5 years under the small business regulation, where I do the annual financial statements myself.

Now I would like to switch to input tax deduction next year or apply for it retroactively this year.

I would like to know if a profit and loss statement (EÜR) is sufficient for this purpose or if I would then automatically be required to prepare a balance sheet.

Thank you very much.

Michael Herrmann

Dear inquirer,

First of all, thank you for your request, which I would like to answer based on the information provided and in the context of your involvement in an initial consultation. The answer will be given according to the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

By waiving the small business regulation, you will not be subject to "accounting" or bookkeeping obligations. Bookkeeping obligations exist once a turnover of €500,000 OR a commercial profit of €50,000 is exceeded. Only when one of these threshold amounts is exceeded, you must prepare a balance sheet. The voluntary preparation of a balance sheet is also possible.

I hope that these details have given you a sufficient overview of the situation in the context of your involvement and this initial consultation, and remain

Yours sincerely,

Michael Herrmann
Tax consultant
Diploma in Financial Management (FH)