Side business becomes main business.
February 16, 2012 | 40,00 EUR | answered by Dr. Yanqiong Bolik
Hello,
I would like clarification on the following questions:
Since 01.12.2011, I have been operating a side business and have been using the small business regulation, so I have not been charging any sales tax so far.
In the tax office questionnaire, I indicated that it is a side business and that I have a different fiscal year, starting on 01.12.2011.
Since 02.02.2012, this business is now going to be my main source of income. The business registration with the trade office has been submitted. Now to the questions:
1. Will the tax office contact me without me prompting them, like the first time?
2. Do I now have to retroactively calculate sales tax for all invoices since 01.12.2011? Or only from 02.02.2012?
3. Should I simply write completely new invoices and hand them over to my clients (they definitely have no problem with it being recalculated)? If yes, how should I date them? The old date?
4. If I recalculate sales tax - do I have to wait for my VAT ID, will I even receive one? I already have a regular tax number.
5. How does the VAT pre-registration work if I recalculate the VAT. Do I then have to immediately submit the declarations for January, December, and February?
6. When is the deadline for my annual financial statements with the different fiscal year?
Thank you in advance!
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or ambiguity in the information can change the tax result.
Based on your information, I assume that you have been operating the same business in unchanged legal form since 01.12.2011, but now as your main occupation starting from 02.02.2012. As a result, your business will not be re-registered by the tax office.
The application of the small business regulation is not dependent on whether you operate the business as a side job or as your main occupation. As long as your (projected) total turnover in 2011 did not exceed 17,500 euros and is not expected to exceed 50,000 euros in the current calendar year (2012), you can continue to apply the small business regulation. Invoices that have already been issued correctly do not need to be corrected. You do not need to retrospectively charge VAT due to the change from a side business to a main business. Therefore, there is no need to submit a VAT pre-registration.
The VAT identification number uniquely identifies a company within the EU. It may be needed for transactions involving goods and services within the EU. If you need a VAT ID, you can apply for one at the Federal Central Tax Office (BZSt).
A different fiscal year is used for profit calculation purposes. If it starts on 01.12., then it ends on 30.11. of the following calendar year.
I hope this information was helpful to you.
If you still have any questions, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Email: steuer@zdbz.de
www.steuerberatung.zdbz.de
