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Income statement for small businesses

Hello,

I took over a small online shop selling clothing to Luxembourg at the beginning of last year. The goods are produced by a service provider in Germany and then shipped to Luxembourg ("Print on Demand"). The turnover was approximately 12,000 euros last year. I have registered a business for the online shop and am taking advantage of the small business regulation, so I am exempt from VAT. The shop is operated as a side business.

Can I just do my income-statement in Germany as usual, or do I need to consult a Luxembourgian tax advisor because I have exceeded the delivery threshold?

Steuerberater Knut Christiansen

Good evening and thank you for using ask-a-professional.com!

I am happy to provide you with the following initial information in response to your question.

Basically, your business is exclusively based in Germany, since you operate it from here. This means that profits must still be declared exclusively in Germany. Therefore, you must record income and expenses as usual in the EÜR attachment.

However, in terms of VAT (!), the OSS procedure has been in effect since last year, which eliminates the requirement for registration in the respective EU country as long as you have signed up for it. If you exceed the delivery threshold of a total of 10,000 EUR, you would either be "obligated" to register for the OSS procedure with the BZSt and report and pay the VAT through it. If you choose not to exercise this option, you would be required to register in Luxembourg and report and remit the VAT there. It may be advisable to engage a tax advisor in Luxembourg to handle these reports for you.

Best regards,

Knut Christiansen
Tax Advisor

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Steuerberater Knut Christiansen

Steuerberater Knut Christiansen

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