Taxation of self-employed income at a later date
May 10, 2016 | 25,00 EUR | answered by Grit Weidauer
Hello,
since 2011, I have been developing an Android app as a hobby on the side. With this app, I have made the following income through sales and advertising:
2011 52.60 €
2012 246.45 €
2013 305.04 €
2014 755.10 €
2015 1,068.14 €
I have not yet declared this income for taxes. I have inquired with the tax office whether I need to register a business for this. I have received the response that I only need to submit the business opening form and declare the income as self-employment income.
What options do I have to properly declare and pay taxes on the income from the last few years?
Kind regards
Dear questioner,
Employees are required to submit an income tax return if their income exceeds €410.00.
According to income tax guidelines: "IT consultants regularly perform an engineering-like activity in the field of system software. In the area of developing user software, the activity of the IT consultant is only to be classified as self-employment if they operate the development of user software through a classic engineering approach (planning, construction, monitoring) and have an education comparable to that of an engineer (→ Federal Fiscal Court dated 4 May 2004 – Federal Tax Gazette II p. 989)." Therefore, under the aforementioned circumstances, self-employment may exist and not a commercial enterprise. In that case, no business registration is required.
It is also important to consider the VAT assessment. Even if the small business regulation applies to sales, it must be examined to whom the sale of the software is made and whether services are received in accordance with § 13b of the Value Added Tax Act.
For a comprehensive assessment, it is advisable to consult a tax advisor directly with the documents.
Best regards,
Grit Weidauer
Tax advisor in Munich
