Small business turnover tax threshold
January 24, 2012 | 20,00 EUR | answered by Dr. Yanqiong Bolik
I work as a small business owner on the side and mainly sell used books online. My question is: How much income am I allowed to have in order to still fall below this threshold?
I am aware of the turnover limits of €17,500 and €50,000 in the following year. Would I have to deduct the hypothetical sales tax from this €17,500, so that my real income should only be reduced by the 7% or 19% amount in order to not become liable for sales tax?
Or is this hypothetical sales tax, which I just don't have to pay, already included in the €17,500?
Regards
Dear Mrs. Opitz,
Thank you for your inquiry, which I am happy to answer taking into account your efforts and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
According to § 19 para. 1 UStG, the tax that a small business owner owes for their taxable sales is not to be levied under certain conditions. The threshold of 17500 EUR is to be calculated based on (net) consideration, without VAT. Please note that if you have only carried out your commercial activity in part of the calendar year, the actual total turnover should be converted into an annual total turnover.
I hope I was able to assist you.
If there is still uncertainty, please feel free to use the inquiry function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 9332 2657
Email: info@zdbz.de
www.steuerberatung.zdbz.de
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