Small business owners - Invoices from abroad!?
February 9, 2011 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Hello,
I am planning to start a small business (VAT exempt §19) soon. I want to earn some extra income through eBay or an online shop (graduated in 2011). I plan to trade CD codes (activation codes) that I order from Russia (official codes). As far as I understand, as a small business owner, I only need to present an annual profit and loss statement to the tax office. I must keep all invoices (expenses and income) carefully.
FIRST QUESTION:
In which language can I receive an invoice from Russia? Can it be in Russian? Or should I translate it into English? Do I absolutely need these invoices? If so, what information must be included on this invoice?
SECOND QUESTION:
Do I need a business account (e.g. Postbank)? Or can I trade with my personal account as long as I keep track of everything?
THIRD QUESTION:
Are there any additional costs that may arise if I do not have to pay VAT? (hidden costs)
FOURTH QUESTION:
When do I need to report my profit and loss statement to the tax office? Will I be prompted to do so? Or should I go there automatically? Can I create a simple Excel spreadsheet? (monthly - income and expenses)
I hope you can help me further!
Thank you in advance!
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment in a first consultation as follows:
GENERAL
You must register your business at the trade office of your municipality. One copy of this registration will be sent to the tax office responsible for you, which will then send you a form for the registration of your commercial activity. This form must be filled out truthfully, including applying for the small business regulation according to § 19 UStG.
First question:
Invoices must be issued in a living language, the tax office may require a translation into German.
Second question:
I would recommend a separate account for your commercial activity.
Third question:
You may have to pay contributions to the professional association and the Chamber of Commerce (IHK). Your health insurance obligation must also be clarified with the health insurance company. This question can only be fully answered after a detailed examination of your business concept.
Fourth question:
You are obliged to submit an income tax and sales tax return with an informal income-expenditure account by 31 May of the following year. If your annual turnover does not exceed 17,500 euros, you do NOT have to submit the official form EÜR. This deadline extends until 31 December of the following year if you are legally advised. You will only receive a request to submit under threat of a penalty if the declarations are not submitted on time.
I hope I have been able to assist you.
Best regards
Ulrich Stiller
Tax advisor/Diploma in Business Administration
