Holiday apartment small business turnover tax
June 5, 2012 | 25,00 EUR | answered by Oliver Burchardt
Last year, my wife and I bought a vacation rental in the fall. This property is managed through an agency. The total revenues (sum of invoices to tenants, no VAT stated) this year will be around 19,000 euros (gross), which is above the 17,500 euros set for small business owners.
Our question is:
Can we continue to be classified as small business owners?
For tax purposes, we are jointly assessed. Are both of us considered small business owners, effectively doubling the 17,500 euros, or are the revenues split 50% for each of us, as we both own the property equally?
In any case, this would keep us under that amount.
We will never reach the 50,000 euros per year as entrepreneurs, as we are both employees with no additional income from "self-employment" and the maximum rental income is around 21,000 euros per year.
Dear inquirer,
Thank you for your inquiry, which I will be happy to answer as part of an initial consultation.
Please note that the tax assessment is based on the information provided. Adding, changing, or omitting information can potentially alter the result significantly.
The tax joint assessment only applies to income tax, and does not take into account value-added tax.
Legally, you and your wife rent out the apartment as a civil law partnership (GbR) or as a community of owners. This GbR or community of owners is considered an entrepreneur for VAT purposes. Therefore, only the sales generated in this form should be considered.
If these sales exceed the threshold of § 19 UStG, unfortunately, the application of the small business regulation is no longer possible.
I am sorry that I cannot provide you with a different answer.
Kind regards,
Oliver Burchardt
Tax advisor
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