What tax regulations apply to the sale of products in online commerce?
September 14, 2023 | 40,00 EUR | answered by Karl Albrecht
Dear tax advisor,
I am planning to start my own business in the field of online commerce and sell various products through my own website. However, I am now faced with the question of which tax regulations I need to consider. I have no experience with tax issues and am therefore unsure how to correctly declare my sales.
Currently, I am still in the founding phase of my business and want to ensure that I consider all tax aspects correctly from the beginning to avoid problems later on. I am particularly concerned about issues such as VAT liability, proper bookkeeping, and tax payment. I want to avoid being confronted with unexpected tax payments at the end of the year.
Therefore, could you please explain in detail which tax regulations apply to the sale of products in online commerce? Which taxes do I need to pay and at what rate? Are there any particularities that I, as an online seller, need to consider? How can I best organize my bookkeeping to meet tax requirements?
I look forward to your response and thank you in advance for your support.
Best regards,
Albrecht Busch
Dear Mr. Busch,
Thank you for your inquiry regarding the tax regulations in the field of online commerce and self-employment. It is understandable that as a new business owner, you are unsure and want to ensure that you consider all tax aspects correctly from the beginning. I will be happy to explain in detail the tax regulations that apply to the sale of products in online commerce and address your questions.
First and foremost, it is important to know that as an online retailer, you are generally liable for value-added tax. This means that you must charge VAT on your sold products, which you then remit to the tax office. The current VAT rate in Germany is 19%, but reduced rates of 7% also apply to certain products such as food. It is important that you correctly indicate VAT on your invoices and regularly remit it to the tax office.
In addition to VAT, as a self-employed individual, you must also pay income tax on your profits. The amount of income tax depends on your profit and is calculated based on your income and expenses. It is therefore important that you maintain proper accounting to document your income and expenses in a comprehensible manner. It is advisable to use suitable accounting software to manage your finances efficiently.
As an online retailer, you must also ensure that you meet any additional tax obligations such as registering with an electronic marketplace or paying packaging taxes. Therefore, it may be beneficial to seek advice from a tax advisor early on to ensure that you meet all tax requirements.
Overall, it is important that you address the tax aspects of your self-employment early on and establish a solid accounting system to avoid any issues with the tax office later on. I am happy to assist you with any further questions and support you in implementing your business idea.
Best regards,
Karl Albrecht
