From when can invoices be issued with VAT shown?
December 21, 2009 | 20,00 EUR | answered by Matthias Wander
Hello,
I am a student and recently registered a business at the Munich Trade Office with a focus on "operation of an online shop" and "web design". Now I have a few small, probably very simple questions about it.
Previously, I registered a business in the Starnberg district, only with a focus on "web design". Is it enough to deregister this business at the relevant trade office and submit the income tax return for 2009 to the Starnberg tax office as usual? Can I then essentially forget about my previous business activity and continue in Munich in 2010?
Since I mainly have business customers, I see myself forced to be able to show VAT from now on. What do I need to do for this? Initially, just tick the box on the form I will receive from the Munich tax office soon (I assume?), stating that I am waiving the small business regulation? Or do I need to consider/apply for anything else? Can I already show VAT on invoices before I have heard anything from the Munich tax office (not sure if this will happen this year)? When can I apply for a VAT ID number?
Where and how can I reclaim the VAT that I pay on business expenses?
Will my personal tax number change due to my move (residence, as well as the "business office")?
Thank you in advance.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided in an initial consultation.
If you are no longer conducting business in Starnberg, you should deregister it. The income tax return would normally need to be submitted at your new place of residence in Munich, and the business tax returns (including the separate determination declaration) in Starnberg. However, there should be no issue if you still submit everything to the Starnberg tax office. The tax offices would then exchange information with each other.
In the tax registration form, you should indicate that you are waiving the small business regulation if the annual turnover is less than €17,500. If the annual turnover is higher, you do not need to check anything, as the obligation to pay sales tax would then automatically apply.
For a turnover up to €500,000, you can choose between the accrual or cash-based accounting. With accrual accounting, the sales tax is due when the service is provided; with cash-based accounting, it is due only when you have received the money.
You can now issue invoices with sales tax. The sales tax invoiced must be reported and paid in the sales tax pre-registration. You deduct the VAT on operating expenses (input tax) from the sales tax to be paid in the sales tax pre-registration.
You can apply for the VAT ID number by checking the corresponding field on the tax registration form. It usually takes a few weeks until the number is assigned. However, you can also apply for the number yourself at the Federal Central Tax Office in Saarlouis. For this, you need your (new) tax number or, if the tax number has not yet been assigned, proof of entrepreneurial status from the Munich tax office.
As a result of moving to Munich, you will receive a new tax number from the Munich tax office.
I hope this gives you an initial overview.
Best regards,
Wander
Tax consultant
