Ask a tax advisor on the topic of Other questions to tax advisors

Commerciality of advisory work

October 18, 2010 | 35,00 EUR | answered by Steuerbera Georg Stahn

I was self-employed as a lecturer from 1.1.2010 to 26.7.2010, in VAT-exempt orders for educational institutions. I registered with the tax office as a self-employed, non-commercial lecturer and consultant. From 26.7. - 29.19.2010, I worked as an employee full-time, and lectured part-time. Starting from 1.11.2010, I am supposed to provide consulting services for various industrial companies as a self-employed individual. I am still present in the market, have a website, and am not considered a falsely self-employed worker.

The problem is: I am a sole proprietor and will remain so indefinitely; am I still considered self-employed? I also provide commercial advisory services, similar to an IT consultant, which are not educational in nature, or are they? Meaning, I have to charge VAT and pay input tax. Do I need to register a trade with the tax office now? How do I handle becoming liable for VAT with my first invoice in December? My annual turnover in 2011 is around €50,000, this year it would be a maximum of €8,000 plus VAT. As the tax office has denied me a deferral once before, leading to a near collapse, I want to prevent that from happening again! (see also: www.schwarz-dialogisch.de)

In conclusion: I no longer teach, but advise companies that are not VAT exempt, as it is a completely normal commercial activity. What do I need to report to the tax office, Chamber of Commerce (IHK?), and elsewhere from 1.11.2010 onwards?

Thank you very much!

Steuerbera Georg Stahn

Good day

two surplus determinations should be made here, if it is possible to separate the expenses:
1) No sales tax/no input tax deduction
2) Subject to sales tax/input tax deduction

The business must be registered with the city tax office.
For the calendar year 2010, you can waive the sales tax calculation (§ 19 UStG., small business regulation) as the turnover is less than €17,500.00.
However, please note that you will not receive a refund for the input tax paid.
Starting from the calendar year 2012, you are subject to sales tax due to the turnover in 2011 (€50,000.00).

I hope I have answered your questions so far and I am of course available for any further questions at the following contact details:
Phone number 02161/67673
Fax number 02161/672360
Mobile number 0172/2914429
Email address georgstahn@t-online.de

Kind regards

Georg Stahn