Small entrepreneursA small enterprise does not have to pay any turnover tax to the tax office, if
its turnover in the previous calendar year did not exceed 17,500 euros and- turnover in the current year is not expected to exceed 50,000 euros.
However, anyone not paying turnover tax cannot claim input tax either. You pay input tax, e.g. when you pay your suppliers’ invoices. Turnover tax and input tax can be offset against each other, as you receive the input tax back from the tax office. Thus, if you as an entrepreneur have high outgoings for investments and/or goods deliveries, you should waive the tax exemption.
Simple accounting records
Every entrepreneur has to record his business transactions in writing, with the aid of his/her accounting records. There is a simple and a complex method of accomplishing this. Commercial entrepreneurs may keep so-called simple accounting records, if they are considered as businesspersons and do not need to be entered in the commercial register and the following thresholds for turnover and profits are not exceeded:
- Turnover: 500,000 euros
- profit from commercial operation or agriculture/forestry: 50,000 euros
Cash receipts and disbursement statement
Every entrepreneur has to calculate his/her profit at the end of every fiscal year. Small enterprises with turnover, profits and so-called economic values below the above-cited levels need only calculate their profit via a simple cash receipts and disbursement statement on a pre-printed official form.