Ask a tax advisor on the topic of Income tax return

Information about small business

August 29, 2009 | 15,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello, in 2007 and 2008, I operated a small business alongside my main employment as an employee, but I never registered this business (so I also do not have a separate tax number for it). I now have to submit the income tax return for both years and do not know how to proceed. Do I need to register the business retroactively or can I also do without, since I no longer operate the business?

Dipl.BW/SB Ulrich Stiller

Dear Seeker,

Thank you for your inquiry, which I would like to answer based on your information and taking into account your minimum fee for an initial consultation as follows:

From a tax perspective, the registration of your business is not important. However, you must register your business regardless of the tax treatment so that you do not face a fine from the relevant registration authority.

From a tax perspective, you must submit an income-statement to the tax office for the years 2007 and 2008 as part of your income tax returns. In this statement, you determine the profit or loss by comparing the business income with the business expenses. You must enter the profit or loss calculated in the GSE annex (2007) or the G annex (2008). In addition, you must also declare your income from non-self-employed activities in your tax return.

If your total turnover in 2007 did not exceed 17,500 euros and did not exceed 50,000 euros in 2008, then as a small business owner according to § 19 UStG, you do not have to pay sales tax to the tax office and also do not have to submit a sales tax return to the tax office, unless you have voluntarily opted for the regular sales tax treatment, for example by separately stating sales tax on your invoices.

I hope my explanations were helpful to you.

Yours sincerely,

Urich Stiller
Tax advisor