Thanks for the tip! The only thing is that, from reading around other threads on here and elsewhere, if the UK Ltd company is effectively being operated from Germany, I believe that it would be liable to tax in Germany. If nothing is happening in the UK I can't legitimately say that it's liable to UK corporation tax. Right?
And if it's carrying on a trade from Germany, I would still have (at least) the same registration requirements as I would have as a self-employed Gewerbetreibender, ie, registering with the Finanzamt, with the local Handelskammer, and so on.
This all sounds like a bit of hassle, which I don't necessarily want to incur up-front, as this whole idea may turn out to be nothing more than a passing fad which makes very little money at all.
If I just make a small amount of money (similar to what I might make if, for example, I was giving some of the neighbours' kids a bit of tuition with their schoolwork), I can't believe I have to go through all the polava of registering as a trading entity... do I?
I guess what I am getting at though is... If I develop an iPhone app and sell a few hundred copies and make €500, and maybe just want to offset my expenses for registering in Apple's iOS Developer Program (~€100), do I really need to register myself as a business with the Finanzamt to do this? Is this what other people would do? Or would they just add this income somewhere on the tax return in some 'miscellaneous income' section?
This seems to be referring to the scenario where I go only to city X (which is where my business will be done) and I extend the trip by a day or two at one or either end for personal reasons. That is rather different from tagging on a whole additional trip to city Y, which I woukdn't expect per se to be tax deductible at all. (It can't really be the case that if I do a 9-day trip to city X and I then tag on a 1-day trip to city Y that that whole itinerary can be classed as a business trip, even though there was an extra flight to city Y which was completely unnecessary for the purpose of the business trip, can it?)
I would assume at a high-level that this trip to city Y exclusively for leisure/personal reasons isn't tax deductible at all. Simple. But then there is this annoying interaction between the travel to city X and the travel to city Y (point (2) in my second list above), which I don't seem to have been able to find a satisfactory explanation about (in either Deutsch or English).
I am currently registered with the German authorities as a freelance IT consultant, but I would like to start developing (and selling) iPhone apps as a side project.
My understanding is that the selling of iPhone apps is very clearly a gewerblich and not a freiberuflich activity and so, all other things being equal, requires registration with the Finanzamt as a gewerblich activity.
However, what I'm wondering is the following:
- Do the Finanzamt (or German tax law) have any kind of de minimis provision, whereby they officially or otherwise are not interested in app development businesses turning over only, say, €1000 a year? (I am not suggesting not declaring this income BTW - just that it would be declared as 'miscellaneous' income or whatever the tax return allows, rather than as an explicit business income.)
- When the boundary between doing this sort of thing as a hobby and doing it as a serious business venture is not abundantly clear (as is often the case), and one, for example, incurs quite a lot of expenses up-front before deciding whether or not to register oneself as a gewerblich entity with the Finanzamt, can these expenses still eventually be offset against one's gewerblich income? Or can one only deduct expenses from the date of registration onwards?
Any input on this topic will be gratefully received.
I'm registered with the authorities as a Freiberufler, and I often have travel expenses for going to visit my client(s) in other parts of Europe. I offset these from my income and all is well.
In others words, I normally do an itinerary like the following:
1) Berlin to City X
2) City X to Berlin
However, what is the situation if I do something like the following (where the purpose of visiting City Y is leisure, but the purpose of visiting City X is business)?
1) Berlin to City Y
2) City Y to City X
3) City X to Berlin
It seems to me to be abundantly clear that (1) is not a tax-deductible expense and that (3) is a tax-deductible expense. But what about (2)?
If I was an employee and my employer required me to be in a location other than my home base immediately after a holiday, I would say they could jolly well pay for my travel (within reason) directly from my holiday destination to my work destination. Assuming my employer agreed to do this, they would no doubt book it as a tax-deductible expense. However, when I'm a freelancer it somehow feels a bit different. Are there any clear rules for dealing with these situations where work and personal travel intertwine?
Thanks in advance for any insight which anyone can provide!
Does someone know which is the correct box to use on the German Umsatzsteuer-Voranmeldung for the supply of IT services (eg, software development) to a company in another EU member state? I had originally thought it was box 41, but now I have seen some suggestions that it should actually be box 45, since box 41 is only meant for the supply of physical goods. Is that right?
When completing the ZM, that would also mean that these amounts should be accounted for as "Sonstige Leistung" and not as "Innergemeinschaftliche Lieferung", right?
I have searched several threads on TT already but couldn't find anything directly on this topic...
Are there any public/state/local authority gyms in Berlin? Most councils in Scotland (and I'm guessing the rest of the UK) have such things, and one major benefit with them (at least for me) is that you can generally use them on a pay as you go basis.
Never quite understood why society settled on a view that gyms should be something one consumes on a subscription rather than a per-use basis, but that is just an off-topic aside and not so important right now!
- This will be my first year submitting a German tax return. Am I going to get a pre-populated form through the post from the Finanzamt sometime in the near future instructing me to complete and submit a tax return, or do I need to do this on my own initiative?
- What date does the return for 2010 need to be submitted by, and is the date the same if you do the submission electronically or on paper?
For both of the questions above, is there any difference in the answer as it pertains to my private tax affairs compared to that relating to my Freiberufler activities? Specifically, is it two separate returns or one (ignoring the separate Umsatzsteuer return)?
In this scenario, assuming one is a compulsory member of a statutory health insurance through one's employer, should one technically pay a bit more for one's health insurance because of the additional freelance income?
Or if you are a compulsory (ie, employed) member of a Krankenkasse are your contributions worked out only on the basis of your employment income?
If so, does that mean it is possible, in an extreme case, to get some fairly low-paying job and thus get public health insurance fairly cheaply, whilst making thousands of euro a month extra from some own business?