Is a sales tax return also required in case of losses?
September 24, 2023 | 50,00 EUR | answered by Lina Sauer
Dear tax advisor,
my name is Fred Huber and I run a small online trading company. Unfortunately, in the past few months I have had to record some losses as my sales did not go as planned. Now I am wondering if I still have to submit a sales tax return, even though my company is experiencing losses.
I am worried that I may get into trouble with the tax office if I do not submit the sales tax return. At the same time, I am questioning whether it makes sense to submit a return if I am experiencing losses.
Could you please explain to me if as a business owner I still have to submit a sales tax return even if I am experiencing losses? Are there any exceptions or special regulations that apply in my case? And if I do indeed have to submit a return, what information should I take into consideration?
Thank you in advance for your help and support.
Best regards,
Fred Huber
Dear Mr. Huber,
Thank you for your inquiry regarding the sales tax return for your online trading company, despite the losses you have experienced in the last few months. It is understandable that you are concerned about whether you are required to submit a sales tax return despite the difficult situation and whether it is even worthwhile to do so.
In general, as a business owner, you are obligated to submit a sales tax return regardless of whether you made a profit or a loss, as long as you have made taxable sales. Even if your company is experiencing losses, you may still be required to pay sales tax or even claim input tax. Therefore, it is important to submit the sales tax return to avoid problems with the tax office.
However, there are some exceptions and special regulations that may be relevant in your case. For example, you may be able to use the small business regulation if your annual turnover is below the legal threshold. In this case, you are exempt from sales tax and do not need to submit a sales tax return.
If you cannot use the small business regulation, you should ensure that all relevant information is considered when preparing your sales tax return. This includes sales figures, input tax amounts, sales tax rates, potential tax exemptions and reductions, as well as any receipts and documents supporting your statements.
It is advisable to seek assistance from an experienced tax advisor to ensure that your sales tax return is correct and complete. A tax advisor can also help you take advantage of potential tax benefits or relief measures and avoid unnecessary problems with the tax office.
I hope this information has been helpful to you. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Lina Sauer
Tax Advisor
