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The small business regulation exceeds 17,500 euros.

March 1, 2010 | 15,00 EUR | answered by Michael Herrmann

Hello,

Since 2009, I have been self-employed and have been using the small business regulation.

If I exceed the 17,500€ limit in the current year 2010, do I have to pay back the sales tax or does the regular taxation only apply in the following year 2011?

Best regards

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.

The turnover limits of the small business regulation refer to expected turnover. In the first year after exceeding the turnover limit of 17,500€ (gross), turnover of up to 50,000€ (gross) is not harmful. Only when this limit is exceeded, the entire turnover is subject to sales tax.
You should estimate whether you will exceed a turnover of 42,016€ (net) this year or not. If so, sales tax should be charged.

After exceeding the limit of 17,500€ (gross) this year, the standard taxation must be applied from 2011 onwards.

I hope that I have provided you with an initial overview of the situation with this information and remain

Yours sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor