Small business regulation and freelancer
January 6, 2022 | 35,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
I am a small business owner (in the field of cosmetics) and would like to also work as a professional guardian. The profession of a professional guardian is a freelance activity and is NOT subject to VAT.
With the income from being a professional guardian, I will definitely exceed the small business threshold of 22,000 EUR/year. Will my turnover in the cosmetics sector automatically become subject to VAT (even if it remains below 22,000 EUR) or are these two incomes counted separately and can I continue to be a small business owner in the cosmetics sector?
Thank you for your response!
Best regards,
Jana Hirsch
Good day and thank you for using ask-an-expert!
Regarding your question, I would like to provide you with the following information:
The small business regulation of § 19 UStG can be applied if the total turnover in accordance with § 19 Abs. 3 UStG does not exceed the amount of 22,000 EUR. The total turnover is defined as follows:
"Total turnover is the sum of taxable turnover carried out by the entrepreneur in accordance with § 1 Abs. 1 No. 1 minus the following turnovers:
1. Turnovers that are tax-exempt according to § 4 No. 8 letter i, No. 9 letter b, and numbers 11 to 29;
2. Turnovers that are tax-exempt according to § 4 No. 8 letters a to h, No. 9 letter a, and No. 10 if they are auxiliary turnovers."
Since the turnovers as a professional guardian according to § 4 No. 16k UStG are tax-exempt, they do not count towards the total turnover. Therefore, the turnover from the cosmetics sector remains relevant. If you stay below 22,000 EUR turnover per year here, you can continue to invoice without sales tax.
I hope this answers your question, otherwise feel free to ask for further clarification.
I would like to remind you that this forum cannot replace a comprehensive and personal tax consultation, but is primarily intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue may change.
Best regards!
Knut Christiansen
Tax consultant
