July 20, 2024

Paull Ank Ford

Business Think different

The Calendar years with the Taxes

Instead of the calendar quarter, the entrepreneur can choose the calendar month as the pre-registration period if there is a surplus in his favor of more than EUR 7,500 for the previous calendar year. In this case, the entrepreneur has to submit a pre-registration for the first calendar month by February 10 of the current calendar year. The entrepreneur is bound to exercise his right to vote for this calendar year.

However, an extension of the deadline is possible

The extension of the deadline is to be granted to an entrepreneur who has to submit the advance notifications on a monthly basis, provided that he pays a special advance payment on the tax for each calendar year. The special advance payment is one eleventh of the sum of the advance payments for the previous calendar year.

Entrepreneurs, where the bosses still write the invoice themselves are you fed up with the endless troubles and mistakes of “Word Copy & Paste” writing? Do you shy away from the costs and unnecessary functions of expensive billing software? ‚ÄúThen write bills.

The input tax deduction: What can companies deduct from the sales tax?

Basically, every entrepreneur can deduct input tax amounts from the sales tax owed by him under certain conditions and then only have to pay the reduced amount to the tax office. In particular, the legally owed tax for deliveries and other services that have been carried out by another entrepreneur for his company is considered input tax. However, in order to be able to deduct input tax, the entrepreneur must have a properly issued invoice.

When can I switch from the VAT obligation to the small business regulation?

As part of the initial establishment of entrepreneurship, the entrepreneur has a right to choose. Either he opts for the small business regulation because his sales in the calendar year will probably not exceed the amount of 17,500.00 euros or he waives this regulation and then has to subject all sales, except those which are tax-free, to sales tax. Easily calculate sales tax  properly in this case.

However, if you have decided against the small business regulation, you are bound by this decision for a period of 5 years. A renewed change to the small business regulation is then possible again at the earliest after this period has elapsed upon request.

Sales tax: pros and cons of small business regulation

At the beginning of their career as an independent entrepreneur, every founder is faced with a variety of tax law issues. One decision that every business start-up must make is their classification with regard to sales tax treatment. Does he want to make use of the small business regulation when writing invoices or better not? We will examine this question in more detail below.