subsequent business registration
February 17, 2010 | 25,00 EUR | answered by Matthias Wander
At the beginning of this year, I wanted to become self-employed by purchasing a company by 01.03.10. Shortly before signing the contract, there were complications and the takeover of the company fell through. However, by that time I had already made a down payment of 12000 euros for machines, received a bill for a logo and website, and paid for the business start-up advisor. So, all together, it was approximately 17,000 euros gross.
Question 1:
Can I still register a business for a side job in order to at least get the tax back on the invoices I paid?
Question 2:
If question 1 is possible, when can I deregister the business without getting into trouble with the tax authorities?
Thank you in advance.
Dear inquirer,
Thank you for your request, which I would like to answer based on the information provided and in the context of your business activities as part of an initial consultation.
The expenses you incurred are considered futile operating expenses.
Since you became a business owner for tax purposes with the first outwardly recognizable activity directed towards entrepreneurial activities, you can reclaim the VAT invoiced to you as input tax from the tax office. The status of being a business owner does not disappear retroactively, even if there is no income later on, as long as the seriousness is proven or made plausible through objective characteristics.
Furthermore, the loss incurred from futile operating expenses in the course of business can be taken into account in your income tax return if there is a recognizable connection to your income. If you do not receive the down payment for the machines back, it is considered a bad debt loss, which can also be tax-deductible.
A business registration is not required, as you never actually engaged in commercial activities.
I hope this provides you with an initial overview.
Yours sincerely,
Wander
Tax advisor
