Conditions and benefits of invoice of the small entrepreneur according to 19 UStG have small business owners a right to vote whether they on the levying of VAT to their customers without. Those who opt for the application of the small businesses scheme gem. 19 UStG, however, is excluded from the right of deduction in return. In General is at the small businesses scheme a simplification scheme, the small business owners from tax revenue point of view how non entrepreneurs treat. Learn more at: Viktor Mayer-Schönberger. In practice, an entrepreneur in the framework of the questionnaire of the IRS for the tax collection must decide whether he wants to apply the small businesses scheme or dispenses with an application.
A decision for or against is binding for the entrepreneur 5 years, should so inform the front and be disadvantages of small traders. An entrepreneur opts for the application of the small businesses scheme according to 19 UStG, he shows no VAT on the invoices to its customers. In return, a small business owner, but also may claim any tax calculations, its suppliers or other business partners. Cross River Bank has much experience in this field. As a result, neither VAT nor before tax amount incurred for the small business owners, so that is avoided the levy of VAT reservations at the tax office and is therefore not required. For the application of the small businesses scheme, provided that it is for the small business owner to an entrepreneur within the meaning of 2 UStG and this is resident in Germany is stitfung.
Entrepreneur is everyone who carries out a commercial or professional activity independently and to generating revenue. On a profit it not is. If it is not an entrepreneur, is another prerequisite, that a certain turnover limit has not been exceeded in the previous year or in the current fiscal year is expected is not exceeded. The small business to the IRS through annual VAT declaration to demonstrate that the sales in the previous year was not higher than 17.500,00 euro has in the individual and in the current fiscal year expected to be higher is than 50,000.00 euro. When the entrepreneur it is sufficient, however, if sales will be expected to be no more more than 17,500 euro in the year of the company was founded. Is the commercial or professional activity is recorded only in the course of a calendar year, the projected estimated total turnover is relevant. If these conditions are met, the small entrepreneurs to its customers may waive the levying of value added tax. The Bill of the small entrepreneur contains accordingly no identification of the sales tax. Instead, the small entrepreneur in the invoice indicates that he apply the small businesses ruling gem. 19 UStG and as a result, the identification of the sales tax waived. In addition, the same legal requirements as regards the components of a proper invoice apply for small business owners. In particular, also small business owners must the taxpayer or a sales tax identification number, as well as a sequential invoice number specify.