Exceeding the small business threshold with one-time special revenues.
May 18, 2018 | 25,00 EUR | answered by Steuerberater Bernd Thomas
Hello,
Let's assume that as a small business owner, I am lucky enough to sell a piece from my collection for several thousand euros as a one-time occurrence. This will inevitably mean that I will exceed the threshold for small business owners of 17,500 euros. However, it is clear at that point that this was a one-time sale and I will never exceed the 17,500 euro threshold again. Only this year.
Is there a special rule for such cases, or will I simply become automatically liable for VAT, even though in fact I remain a small business owner, as this is a one-time exception and the threshold will not be exceeded permanently?
Can I claim the sale for tax purposes in a way that the sale is considered private and not classified as part of the business? Strictly speaking, the piece sold from the collection should be seen as more private than commercial and does not belong to the business. However, I do not know if and how I am allowed to sell something privately or if it always automatically falls into the business or is counted as turnover. Where would such special income be reported in the income tax return?
Dear inquirer,
I am happy to respond to your inquiry based on the information provided in an initial consultation on frag-einen.com. The response is based on the information you have provided. Missing or incorrect information can affect the legal outcome.
If the sale is made within your business, the sale is generally subject to VAT. It should be examined whether a tax exemption applies, if not, the turnover should be considered to see if you can still claim the small business regulation according to § 19 UStG. If the item is a fixed asset, it should not be included in the small business regulation.
If the sale is from a private collection that is not related to the business sector, the sale is made without VAT and does not affect the small business regulation.
From an income tax perspective, it should be assessed whether a taxable private sale transaction occurs in a private sale, this could be the case if less than one year has passed between acquisition and sale.
Sincerely,
Bernd Thomas
Tax consultant
Dipl.-Kaufmann (FH) Bernd Thomas, Tax Consultant, Neustadtswall 85, 28199 Bremen, Email bernd.thomas@yahoo.de, Phone and Fax 0421 70905588, Mobile 0163 9632333, VAT ID no. DE316948369, Member of the Hanseatic Chamber of Tax Advisors Bremen, Registration number 111705, Professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, Insurance sum: €250,000 for each individual claim; annual maximum benefit: €1,000,000 (for all damages within one insurance year)
