Small business
November 20, 2009 | 25,00 EUR | answered by Michael Herrmann
I buy large quantities of animal food privately and therefore get very good conditions. Now I intend to sell small amounts of this food, but I do not expect to make much revenue from it. If it reaches one thousand euros a year, that would be a lot. The only purpose is to reduce storage costs through sales.
My questions:
1) How often do I have to submit a tax return for this (input tax, sales tax, etc.) and are advance payments to be made?
2) Do I need a bank account for billing, or can I handle cash and keep a cash book, as the supplier also wants to be paid in cash upon delivery?
3) Do I need to have the goods I want to sell invoiced separately from the supplier, or can I simply take out and sell from the quantity I purchased privately?
4) Is it problematic if the location of the business and the residence, where I pay taxes on my other income from non-self-employment, are in different states?
Thank you very much!
Dear inquirer,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Given the small scale of your commercial activity, as a small business owner you do not need to state sales tax until you reach a total turnover of €17,500. Therefore, neither advance VAT returns nor an annual tax return need to be submitted in this regard.
Furthermore, you are not required to keep proper books. However, you should keep documentary evidence of your income and expenses. A business bank account is not necessary. A cash book is also not mandatory. It is advisable, however, to keep a record of income and expenses when storing receipts.
The goods sold do not need to be invoiced separately. However, the purchase price of the goods sold must be traceable based on the purchase receipts.
If the location of the business and the place of residence are different, different tax offices are responsible for determining commercial income and income tax. Consequently, two tax returns would need to be submitted. An income tax return at the place of residence and a statement for the separate determination of profits from business operations at the business tax office.
I hope that this information has provided you with an initial overview of the situation and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
