In which year is turnover tax liable?
October 23, 2021 | 50,00 EUR | answered by Steuerberater Knut Christiansen
Hello, I hope you can help me.
I have had an online shop since 2017 and I am eligible for the small business regulation.
I exceeded the revenue limit in 2019 and the income was very high in 2020 due to the Corona measures. I would like to know in which year I am/was liable for sales tax and approximately how much I can expect to pay back.
Here are my revenues:
2017 - €16,347
2018 - €17,128
2019 - €18,373
2020 - €26,245
2021 - €17,100
The tax office has not commented on this. I have stopped sales for 2021 to avoid exceeding the revenue limit. Do I have to expect a penalty (the income statements have all been submitted correctly)? I was under the impression that the tax office would inform me if I become liable for sales tax in the coming year. Thank you for your help.
Hello,
fortunately, the turnover threshold was retroactively increased from 17,500 EUR to 22,000 EUR starting from 2020. This means that in your case, you could still be considered a small business owner in 2020 because your turnover in the previous year was below 22,000 EUR and your turnover in 2020 also did not exceed 50,000 EUR. Therefore, the obligation to pay sales tax will only apply starting from the year 2021, because your turnover in 2020 exceeded 22,000 EUR. You would have to pay sales tax on the turnover of 17,100 EUR (= approximately 2,730 EUR). If you have already paid sales tax yourself (e.g. for purchased goods), you can deduct this as input tax from the amount owed. The tax liability would have to be paid by the deadline for filing the sales tax return in 2021 (so in 2022). If your turnover in 2021 does not exceed 22,000 EUR, you could be considered a small business owner again in 2022, as long as your expected turnover does not exceed 50,000 EUR.
Please feel free to contact me if you have any further questions.
Kind regards,
Knut Christiansen
Tax consultant
