Gross/Net invoice
November 20, 2009 | 20,00 EUR | answered by Matthias Wander
I would like to start a self-employment similar to an employee from 01.05.2010. I have already been exempted from pension insurance for the first three years. Church tax is already being paid (receiving transitional benefits from the Bundeswehr).
I am planning to purchase a company car and have calculated as follows:
- List price (gross): 50,000€ (of which 1% = 500€ private share to be taxed)
My annual income (example: 1,700€ net as a basis)
12x 2,023€ (gross) = 24,276€;
In addition to the 24,276€, there is the private use of the company car:
24,276 + (12x 500€) = 30,276€;
I am 28 years old and still single, married since 03.09.10.
My actual question relates to the following calculation that I have made.
Monthly income (gross) 2,023€
- Monthly income tax/solidarity surcharge 508.69€ (from 30,276€)
- Monthly VAT advance payment 100.00€ (assuming that this amount will be the monthly VAT tax liability after deducting input VAT)
= Monthly income (net) 1,414.31€;
Is this calculation correct?
Dear inquirer,
I would like to answer your inquiry based on your description of the situation in the context of an initial consultation as follows:
Beforehand, it should be clarified (if not already done) whether your activity is considered "genuine" self-employment or "false self-employment".
Assuming you are self-employed, you have the option to determine the profit from self-employment using a balance sheet (with an income statement) or a simple income surplus calculation. In your case, an income surplus calculation would be more appropriate as it is easier to prepare.
In general, income and expenses in an income surplus calculation are recorded at the time of inflow or outflow. An exception would be the purchase of depreciable assets (e.g. a car).
The profit is determined as follows based on the following example:
Business income:
Net revenue (12 x 1,700) = 20,400
Private car usage (12 x 500) = 6,000
VAT (on revenue and 80% of private car usage)
(6,000 x 80% = 4,800 + 20,400 = 25,200 x 19%) = 4,788
Total business income = 31,188
minus business expenses:
Net costs (e.g. car expenses, office supplies, etc.) = xxx
Deductible input VAT on costs = xxx
Paid VAT prepayments = xxx
Taxable profit = xxx
The profit is then taxed in the context of the income tax return along with other income (if any), taking into account any additional tax benefits (e.g. special expenses). From 2010 onwards, your wife's income must also be included. Whether separate or joint taxation (for spouses) is more favorable for you will need to be examined in detail.
Income tax prepayments may be levied on the potential annual tax. The prepayments are determined by a prepayment notice and are due on the 10th of March, June, September, and December of the year.
I hope this provides you with an initial overview.
Best regards,
Wander
Tax consultant
