Commercial enterprise and self-employed professional
July 29, 2011 | 20,00 EUR | answered by Dr. Yanqiong Bolik
Dear Sir or Madam,
I have been running a business for over 2 years (paying turnover tax), including selling advertising on my website, but now also providing freelance services to clients in the field of internet marketing (SEO, SEA). I would like to know the following:
1. Is it possible to separate business and freelance work in the above-mentioned area? (Business: selling advertising and Freelance: Internet marketing for clients)
2. If yes, then I am wondering if it is problematic that I have been invoicing the freelance work I already do through the business so far. Is this a problem? Or can I simply set a date now to separate both activities in terms of accounting and accounts?
3. Do I need to apply for separate tax numbers or turnover tax numbers for both different activities?
4. How can I best demonstrate to the tax office that both activities do not overlap?
Thank you!
Dear inquirer,
Thank you for your inquiry. Based on the information provided, I am happy to answer your question as part of an initial consultation considering your effort and the rules of this platform. The response is based on the outlined facts. Missing or incorrect information about the actual circumstances can affect the legal outcome.
1. The classification of your type of income is determined by your activity, not the activities of your clients.
2. § 18 EStG lists three types of freelance activities:
i) scientific, artistic, literary, teaching, or educational activities, the independent professional activities of doctors, dentists, veterinarians, lawyers, notaries, patent attorneys, surveying engineers, engineers, architects, commercial chemists, auditors, tax consultants, consulting economists, sworn auditors, tax representatives, naturopaths, dentists, physiotherapists, journalists, photojournalists, interpreters, translators, pilots, and similar professions,
ii) state lottery, if not income from a business,
iii) the execution of wills, asset management, and acting as a member of a supervisory board.
Similar professions are only considered if they correspond to one or more of the listed professions in typical or essential features.
3. Advertising sales are generally considered commercial. Unless the activity is artistic or similar to that of a consulting economist.
4. If you engage in both commercial and freelance activities and wish to manage them separately in two organizations, you must inform the tax office of the freelance activity within one month. A informal letter is sufficient for this purpose. In general, you must prove your professional activity and qualifications. The tax office will determine whether a separate tax number or VAT number will be assigned to you.
5. You must then keep two separate accounting records.
I hope that this initial consultation and based on your information have given you an overview of the situation and helped you.
If you have further questions, I am available for a personal consultation.
Kind regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Email: info@zdbz.de
