5 Dinge, die JEDER KLEINUNTERNEHMER wissen sollte | Steuertipps für Selbständige
There are always unclear things with the small business Kleinunternehmer regulation. There is often confusion and in this video, I will tell you 5 things that you certainly did not know about small business regulations.
Hey.
My name is Melchior from Kontist Steuerberatung and I speak to our customers regularly and notice that, especially when it comes to small business regulations, many things are still not very clear and there are always uncertainties or ignorance about certain facts.
And I thought to myself: I would just record a video and explain to you what you should know about the small business regulation that many people don’t know Fact number 1.
You don’t have to take advantage of the small business regulation.
I hear this again and again from people who are starting up a new business, maybe also part-time, and have low sales at first.
Yes, I’m still a small business owner because I have such low sales, But this justification in itself is not at all correct.
You can also prefer regular taxation from the first day and also prefer the entire VAT processing.
If you want Completely, regardless of whether you are making losses, whether you are making no sales or whether you are just making low sales, you can always decide to show VAT on your invoices and submit VAT returns.
Therefore, in some areas, it makes perfect sense that you should do that. I recorded a separate video for this, which you can find here.
If this is cheaper for you, you can be a large entrepreneur from day one as it were in terms of VAT, and you don’t even have to take advantage of the small business regulation in between Fact number 2.
The VAT return, Even as a small business owner, you still have to file a VAT return, even if you don’t have to pay VAT.
I hear from many customers that they say.
Yes, I am now a small business owner VAT is not relevant.
For me.
I don’t have to make a VAT return and they conclude that they simply have nothing to do with the whole topic of VAT, and then they always are very surprised when I tell them that we still have to file a VAT return for them.
The reason why this is so is relatively logical Because the small business regulation, which is based on certain turnover limits that must be adhered to, and how should the tax office know how much turnover you have made and whether you are or are still a small business owner, Maybe you have done so many sales and you are not anymore, So they need to be notified about this, and this notification takes place in the VAT return.
Therefore, as a small business owner, you also have to file a VAT return.
This is relatively simple and you have to enter the master data once and the turnover once and then there is a field. Please fill this out or click on and tick the box that you were a small business owner this year.
Then you won’t have to pay any VAT, but you have at least once informed the tax office about your sales.
Therefore, please remember to make this declaration, otherwise, there may be negative consequences for you Fact: number 3.
Small business regulation is not always better.
I also hear regularly and read again and again everywhere that the small business regulation is simpler for the founder he should do it because it is better for him.
I cannot confirm that because a small business owner does not have to show VAT on her.
His invoices do not have to make a VAT return and then do not have to pay VAT to the tax office So far so right, But buys this right or privilege at the price of having no input tax deduction.
On the other hand, That means all the invoices that he receives from his service providers’ suppliers, and so on these invoices.
There is also VAT and this VAT, which she he can claim, and this money she he can get back from the tax office.
To give you an example of laptop costs, for example, 1 190 gross, which is 1 000 190 VAT, A small business owner, has to put the entire 1 190 in his bookkeeping as a cost. The entrepreneur who did prefer the whole process in terms of VAT and is simply subject to normal taxation can deduct this 190 VAT from the tax office and only pays 1 000 for this laptop.
That said, this laptop is cheaper for the regular-taxed entrepreneur.
Of course, this does not only apply to only this laptop but everything else as well, and that’s why you should think about if you’re starting a new business and are self-employed, what is cheaper for you in the end, If you have High investments at the beginning have to buy a lot of things.
Then the small business regulation is often disadvantageous for you because you cannot claim input tax you should calculate exactly once whether it is worthwhile or whether the small business regulation is disadvantageous for you And the statement.
Small business regulation is fundamentally the better choice.
For start, ups are wrong.
Fact: number 4: you have to correct your invoices during the year or you suddenly have to report VAT after you have reached 50 000 in sales.
I hear this fact a lot, But that’s wrong.
That’s, not true.
The truth is the small business regulation has 2 sales limits, namely once 22 000 sales in the previous year. You must not get higher and probably below 50 000 this year, And the word probably is extremely important because it is about what sales did you expect at the beginning of the year, I e, theoretically, on January 1st, of each year, what sales you are expecting to Do this year This is the estimation and if you expect a turnover of less than 50 000 on January 1st, then you will be a small business owner for the whole year.
You don’t have to switch anything back and forth during the year, Even if your actual turnover is 500.
000.
I e a factor of 10 higher.
You are still a small business owner all year round and still write your invoices without VAT for the whole year Sure next year you will no longer be a small business owner because next year, on January 1st things will be different.
So, theoretically, on January 1st you sit down and look at what sales I made in the previous year Was it for less than 22 000 No 500 000 is well above that, then you will no longer be a small business owner for the next year, But in Summary, They change the small business regulation during the year and suddenly start reporting VAT or having to correct invoices because you have exceeded any limits.
This statement is not Fact: number 5 has to do with the reverse charge procedure or paragraph 13b in the VAT law.
This means the services from other EU countries.
I e from companies from other EU countries and other services must be taxed in Germany.
The whole thing is known as Reverse Charge. This means that you, as a recipient of services, have to pay tax in Germany on the services that others have performed for you in Germany.
The whole thing becomes a bit clearer with an example.
For example, do you want to advertise on Instagram, Go to Instagram and set up the advertising So far, so good Your business partner is Facebook?
Facebook has its European headquarters in Ireland.
This means that you now have a business relationship with an Irish company and that Irish company is doing something for you and that is to display your advertising.
For this.
You pay an amount, for example, 1 000 to Facebook in Ireland.
What many do not even know is that they have to pay 19 VAT for these 1 000 advertising costs in Germany, Self employed people and entrepreneurs who are subject to normal.
Regular taxation does not even notice this because they have to pay 190 in VAT, but at the same time can claim this 190 as input tax.
That means it’s just plus-and minus, and it has almost dissolved immediately and you don’t have to pay anything in the end. But now there is a big problem for small business owners.
Small business owners do not have this input tax deduction.
That means, that when small business owners advertise on Instagram, they have to pay this 19 VAT every entrepreneur in Germany has to, But they do not have the input tax deduction which they can claim immediately.
That means, as a small business owner, you have to pay taxes to a company for every payment to another EU country.
For another service.
You have to pay taxes again in Germany because you are taxable as the recipient of the service.
Very few know that, But I would like to recommend: please do not forget this in the future.
You pay tax for this in Germany.
I hope this video was able to help you and answer your questions, But if you still have a question, you will find a comment area under this video and you can ask us there Or the second option: let’s talk to each other.
We Kontist Steuerberatung are specialized tax consultants for freelancers and the self-employed, and we are very happy to help you With this video. You will find a link where you can secure a free informational talk.
Otherwise, to finish off, I have three tax tips for you, 1st tax tip.
You should subscribe to this channel 2nd tax tip watch this video 3rd tax tip watch that video.
