Small business owners are all self-employed and commercial workers who do not exceed a certain total annual turnover.

Legal provision: Small business regulation

In order to be able to take advantage of the small business regulation, two requirements must be met. On the one hand, the turnover limit in the year in which the business was founded must not exceed 17,500 euros. On the other hand, sales of a maximum of 50,000 euros can be expected in the following calendar year. The contributions are annual amounts. If the company was not founded on January 1st, sales are extrapolated to 12 calendar months.

Voluntary sales tax liability

The small business owner has the option to decide for or against the VAT obligation. A decision in favor of sales tax means that sales tax is added to the sales achieved. The small business owner is bound by this decision for 5 years.

A summary of all regulations is listed in Section 19 of the Sales Tax Act.

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Gendernote: I have used the masculine form for ease of reading. Therefore, unless an explicit distinction is made, it always refers to women, diverse as well as men, and people of all origins and nations. Read more

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