Ask a tax advisor on the topic of Trade tax

As a small business owner, sales tax has been invoiced.

January 24, 2012 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello,
I am a DJ and have been a small business owner for about 8 months. I have already written invoices myself, but I have billed the sales tax to the organizer on about 20 of them.
However, now that I have read, I am not allowed to do that. What should I do now?

See you later
Lukas G.

Dipl.BW/SB Ulrich Stiller

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment in a first consultation as follows:

As a small business owner (with a turnover limit of 17,500 euros in the year of establishment), you are generally not allowed to show VAT. However, if you have done so, you owe the VAT to the tax office and must pay it to the tax office monthly (as you are a start-up) in the first year.

Small business owners, however, have the option to waive the application of the small business regulation and opt for regular taxation. However, you are bound to this option for 5 years. The advantage of this regulation is that you have input tax deduction, meaning the VAT you have shown is reduced by the input tax you have paid.

If you reach the turnover limit of 17,500 euros, you can still be treated as a small business owner. In this case, you must pay the VAT shown in the 20 invoices, which you owe according to § 14 (3) UStG, to the tax office without input tax deduction and are not allowed to show VAT in the future.

You should seek detailed tax advice on this matter. Only after reviewing your documents can a legally secure answer be provided in the end.

I hope I could be of assistance.

Sincerely,

Ulrich Stiller
Tax consultant / Graduate in Business Administration