PandaMunich

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About PandaMunich

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  • Location Munich
  • Nationality German
  • Gender Female
  • Year of birth 1974
  1. Join the Renters' Association (Mieterverein) and dump this problem into their lawyer's lap: https://www.mieterbund-bonn.de/mitglied-werden.html The membership costs 90€ per year, and there is a minimum membership period of 2 years.
  2.   VAT you took in (from your clients or as a VAT reimbursement from the Finanzamt) is always business income in Anlage EÜR in your income tax return, while VAT you paid (either for stuff/services you bought or what you forward every month to the Finanzamt) is always a business expense in Anlage EÜR in your income tax return.   In the most ideal of worlds, if you have kept everything up-to-date, you would have immediately forwarded the VAT you owe to the Finanzamt, so this VAT business income and the VAT business expense would cancel out, and VAT would have no effect at all on your profit/loss - you get it, you pass it on.   However, in your case, you paid part of the 2018 VAT very late, after 10. January 2019, so instead of being a business expense in 2018 where it would cancel out this same VAT you took in from your clients in 2018, you can only claim it as a business expense in 2019.   Example:   You sold products worth 11,900€ (= 10,000€ + 1,900€ VAT) in 2018.   Case 1: you forwarded the VAT on time to the Finanzamt, by 10. January 2019:   Income tax return 2018: The simple profit calculation performed in Anlage EÜR (if we neglect business expenses) would be:   10,000     line 14 "Umsatzsteuerpflichtige Betriebseinnahmen" in Anlage EÜR  1,900      line 16 "Vereinnahmte Umsatzsteuer" -1,900      line 49 "An das Finanzamt gezahlte und ggf. verrechnete Umsatzsteuer" _____________________________________________________________________ 10,000     profit for 2018     VAT return = Umsatzsteuererklärung 2018:   1,900      "Steuer" column in line 38 "Lieferungen und sonstige Leistungen ... zu 19 %" 1,900       Vorauszahlungssoll 2018, since you had already forwarded those 1,900€ in VAT _____________________________________________________________________ 0              VAT still due, in line 169 "Noch an die Finanzkasse zu entrichten"       Case 2: you forwarded the 2018 VAT too late to the Finanzamt, after 10. January 2019:   Income tax return 2018: The simple profit calculation performed in Anlage EÜR (if we neglect business expenses) would be:   10,000     line 14 "Umsatzsteuerpflichtige Betriebseinnahmen" in Anlage EÜR  1,900      line 16 "Vereinnahmte Umsatzsteuer" _____________________________________________________________________ 11,900     profit for 2018     VAT return = Umsatzsteuererklärung 2018:   1,900      "Steuer" column in line 38 "Lieferungen und sonstige Leistungen ... zu 19 %" 1,900       Vorauszahlungssoll 2018, since you had already forwarded those 1,900€ in VAT, even though only in 2019 _____________________________________________________________________ 0              VAT still due, in line 169 "Noch an die Finanzkasse zu entrichten"       Case 3: you didn't forward the 2018 VAT at all to the Finanzamt:   Income tax return 2018: The simple profit calculation performed in Anlage EÜR (if we neglect business expenses) would be:   10,000     line 14 "Umsatzsteuerpflichtige Betriebseinnahmen" in Anlage EÜR  1,900      line 16 "Vereinnahmte Umsatzsteuer" _____________________________________________________________________ 11,900     profit for 2018     VAT return = Umsatzsteuererklärung 2018:   1,900      "Steuer" column in line 38 "Lieferungen und sonstige Leistungen ... zu 19 %" 0             Vorauszahlungssoll 2018, since you hadn't forwarded any VAT at all _____________________________________________________________________ 1,900      VAT still due, in line 169 "Noch an die Finanzkasse zu entrichten"     ****************************************************************************************************************   Umsatzsteuererklärung = VAT return Let's translate the word "Vorauszahlungssoll 2018" from line 168 of the Umsatzsteuererklärung 2018, it's "Prepayment should", i.e. the pre-payements he should have made. So as long as he really did the payment before submitting this Umsatzsteuererklärung 2018, no matter whether in 2018 or 2019, it's part of line 168.   Of course, if he hadn't made the payment at all but had just announced it in his UStVA (= VAT announcement), you're not allowed to include it in line 168, and this will of course mean a higher VAT debt result in line 169, since you still owe that money.   Einkommensteuererklärung = income tax return If you're is a Gewerbetreibender whose profit is below 60,000€ a year (and your turnover is under 600,000€), this means that you are not obliged to do double-entry bookkeeping, see §141 AO.    You only report income when it enters your bank account, and only report expenses in the moment you actually paid them, this is called Einnahmen-Überschuss-Rechnung (EÜR), which translated means "revenue-surplus-calculation", i.e. the "surplus of what you took in, over what you spent", which is why you use the tax form Anlage EÜR.  The result of this EÜR is your taxable profit (or loss) that year.    This simple way of doing things means that you are NOT allowed to shift things through accruals and deferrals.    So income and expenditure are not perfectly aligned to each other, they simply fall as they may, this is what the Zufluss/Abfluss-Prinzip (= inflow/outflow principle) of §11 EStG dictates.  If a client pays an invoice for product you delivered in December 2018, only in January 2019, well, that's tough luck, you have to deduct the expenses you incurred to make that product when you actually paid them in 2018, but the money the client paid will raise your 2019 profit. Very strict, but simple.   There are only a few exceptions to this strict "deduct when paid"/"add when received"-rule: if a recurring payment/income, e.g. rent or payments resulting from your UStVA (= VAT announcement) happens within 10 days of the New Year, it is shifted to the year it really belongs to.  This exception is set down in  §11 (1) sentence 2 EStG for money you get within that 31.12 ± 10 day window, and in  §11 (2) sentence 2 EStG for money you pay within that 31.12 ± 10 day window. So, if for example, you would pay your office rent for January 2019 already on 21. December 2018, you claim it as a business expense in your 2019 EÜR.  If you already paid the rent on 20. December 2018, then tough luck, it's an expense in your 2018 EÜR. If the Finanzamt debits the VAT you calculated in your UStVA, as long as you submitted the "December 2018 UStVA" by 10. January 2019, no matter how late the Finanzamt takes the money out of your bank account, that expenditure still belongs to December 2018. So you're not punished for the fact that you set up a direct debit instead of actively transferring the due VAT into the Finanzamt's bank account every month before the 10th.  That expenditure also belongs to December 2018 in the case that you hadn't set up a debit, but had submitted the UStVA on time by 10. January 2019 and had also transferred them their VAT by 10. January 2019. If, on the other hand, it was your fault that they got that VAT too late, e.g. if you submitted your UStVA too late, say on 11. January 2019, or if you hadn't set up a debit at all but transferred the money too late into the Finanzamt's bank account, then that VAT for December 2018 is a business expense in 2019.   all items that cost more than 800€ (since 2018, before the limit was 410€) excluding VAT have to be depreciated over their lifetime.  This depreciation is called AfA = Absetzung für Abnutzung = "depreciation for wear and tear" and is claimed in line 30 of  Anlage EÜR.  The lifetime for different articles is set down in the AfA-tables. So this is an exception to the outflow principle. You paid, for example, 3,600€ net for a PC in December 2018, and a PC has a lifetime according to the AfA-table of 36 months, but you only get to "use" as a 2018 business expense 200€ of that 3,600€ expenditure.   Items that cost over 150€ net and up to 800€ net are called GWG = Geringwertige Güter = "low-cost items", and are depreciated 100% in the year they were bought, so no exception to the outflow principle here. You claim for it in the year you paid for it. A copier that cost up to 800€ net (= without VAT), even though it is office equipment, would not be claimed for under the category "office equipment" (if there were a category like that in the EÜR, there isn't, it just has a big "miscellaneous"-category called "Übrige unbeschränkt abziehbare Betriebsausgaben" line 51), but in the category "GWG" which is line 33 in Anlage EÜR.  If you bought a bicycle to get around to your business meetings for 952€ (= 800€ net), it would also be in the category "GWG", and not in the category "vehicles" (which again, does not exist in the EÜR, but I am trying to use category names that make sense). Items that cost below 150€ net are also depreciated 100% in the year they were bought (so again, no exception to the outflow principle), but they are not GWG, but are simply declared in the category they belong to, e.g. an office lamp for 119€ (= 100€ net) would be, since the Anlage EÜR is so simple that it doesn't even have a category "office equipment", be put into the  "miscellaneous" category = "Übrige unbeschränkt abziehbare Betriebsausgaben" in line 51 of  Anlage EÜR.        
  3.   No, those 300€ are just a business expense in his Anlage EÜR line 51 "Übrige unbeschränkt abziehbare Betriebsausgaben", i.e. the increase his loss: https://www.steuertipps.de/selbststaendig-freiberufler/themen/sind-steuerliche-nebenleistungen-betriebsausgaben
  4. Jules Verne Campus bilingual school in Munich

    The fee calculator is on their website:  elementary school: https://www.jules-verne-campus.de/en/elementary-school/info-registration/fees/index.html high school: https://www.jules-verne-campus.de/en/grammar-school/info-registration/fees/index.html
  5. Yes, don't worry, after Brexit TK will keep you on, albeit from then on as a paying, voluntary member. Public health insurance is not allowed to kick people out.   So just hope for a distant Brexit date, because until then you don't have to pay anything 
  6.   "and maybe offset VAT". Doesn't apply to you, that's when the Finanzamt internally shifts VAT dues and credits from one year/account to another.
  7. German Capital Gains Tax on Overseas Property

      As far as I recall (looked it up for a relative a few years ago), that magic number of 25% is only the withholding tax for non-residents, and you get some of that withheld tax back when you file the mandatory Canadian tax return:  https://mecklaicpa.ca/non-residents-selling-property/ https://www.globalpropertyguide.com/North-America/Canada/Taxes-and-Costs And doesn't Canada only tax 50% of the capital gain?: https://www.century21.ca/sanjin.cvetkovic/blog/How_to_calculate_Capital_Gains_Tax_on_sale_of_investment_property
  8. German Capital Gains Tax on Overseas Property

    No, the profit from the sale should always been treated like that, i.e. be exempt from German income tax, no matter where in the world that property, that you had owned for more than 10 years, is.   I just didn't know about that last step before, sorry. The last step in the algorithm being, that the Finanzamt will not apply Progressionsvorbehalt if an income were not subject to German income tax if it were German. So, since you do not have to pay German income tax on any profit you make selling a German house/flat that you had previously let, as long as you had owned it for at least 10 years, neither do you have Progressionsvorbehalt on such a non-German house/flat.   The reasoning is that Progressionsvorbehalt cannot generate a tax that isn't there in the first place. Progressionsvorbehalt is only meant to ensure (around the corner) taxation of worldwide income in which Germany didn't get the outright taxation rights in the double taxation agreement but only the right to Progressionsvorbehalt (usually given around article 20 of the DTA), but that would be taxable under German rules if it were German income, i.e. where an underlying German taxation rule already exists. No underlying German taxation rule --> no Progressionsvorbehalt   Formulated in tax-speak: Ein Doppelbesteuerungsabkommen (DBA) kann nicht steuerbegründend sein. = A double taxation agreement (DTA) cannot create a tax that isn't there in the first place.
  9. Taxed on UK rental income in Germany

      It is, but the only ones Germany isn't allowed to discriminate against, for fear of a ruling of the European Court of Justice (ECJ), are other EU/EEA member state citizens  Which is exactly what happened, so we basically have to thank the ECJ for the exemption from Progressionsvorbehalt for EU/EEA rental income.   Before 2008, the situation for EU/EEA rental income was the same as it is now for third countries like the USA or Canada: Germany was more than happy to have any rental profits raise the German tax rate on your other income through positive Progressionsvorbehalt, but if you had happened to make a rental loss, they didn't want to lower your German tax rate because of negative Progressionsvorbehalt. They want to participate in your gain, but not in your loss: https://www.haufe.de/personal/haufe-personal-office-platin/frotschergeurts-estg-32b-progressionsvorbehalt-56-ausschluss-des-progressionsvorbehalts-bei-nach-dba-steuerfreien-einkuenften-aus-eu-und-ewr-staaten_idesk_PI42323_HI2276618.html   Because of the ECJ ruling, the German state would have had to also allow negative Progressionsvorbehalt in the case of EU/EEA rental losses, which they didn't want to, so they simply scrapped both positive and negative Progressionsvorbehalt for EU/EEA rental income in 2008, by inserting sentence 2 in §32b (1) EStG: 2Satz 1 Nummer 3 gilt nicht für Einkünfte 1. aus einer anderen als in einem Drittstaat belegenen land- und forstwirtschaftlichen Betriebsstätte, 2. aus einer anderen als in einem Drittstaat belegenen gewerblichen Betriebsstätte, die nicht die Voraussetzungen des § 2a Absatz 2 Satz 1 erfüllt, 3. aus der Vermietung oder der Verpachtung von unbeweglichem Vermögen oder von Sachinbegriffen, wenn diese in einem anderen Staat als in einem Drittstaat belegen sind, oder 4. aus der entgeltlichen Überlassung von Schiffen, sofern diese ausschließlich oder fast ausschließlich in einem anderen als einem Drittstaat eingesetzt worden sind, es sei denn, es handelt sich um Handelsschiffe, die a.) von einem Vercharterer ausgerüstet überlassen oder b.) an in einem anderen als in einem Drittstaat ansässige Ausrüster, die die Voraussetzungen des § 510 Absatz 1 des Handelsgesetzbuchs erfüllen, überlassen oder c.) insgesamt nur vorübergehend an in einem Drittstaat ansässige Ausrüster, die die Voraussetzungen des § 510 Absatz 1 des Handelsgesetzbuchs erfüllen, überlassen worden sind, oder 5. aus dem Ansatz des niedrigeren Teilwerts oder der Übertragung eines zu einem Betriebsvermögen gehörenden Wirtschaftsguts im Sinne der Nummern 3 und 4.
  10. Taxed on UK rental income in Germany

    Your accountant was wrong, do the Einspruch!   You can find the Germany/UK DTA here: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Grossbritannien/2010-11-23-Grossbritannien-Abkommen-DBA-Gesetz.pdf;jsessionid=019559F89716FE451F7D9F8DFFB4056E?__blob=publicationFile&v=3
  11. Taxed on UK rental income in Germany

      I do. As long as the UK is in the EU, that income doesn't fall under Progressionsvorbehalt.   Please ask your Steuerberater to do an Einspruch immediately, citing the legal reasoning chain in here: https://www.toytowngermany.com/forum/topic/335156-german-capital-gains-tax-on-overseas-property/?page=3#comment-3755041 and https://www.toytowngermany.com/forum/topic/160157-british-rental-property-income-taxation-rules/?do=findComment&comment=2959098
  12. German Capital Gains Tax on Overseas Property

    I have an update with some good news on that:   If you held the property for at least 10 years, the Finanzamt won't even apply Progressionsvorbehalt in the case of a progression clause (= Freistellungsklausel) in that double taxation agreement (DTA), see here: and the very end of this post:   In the other case, if the DTA had a tax credit clause (= Anrechnungsklausel), the profit would anyway be tax-free straight away because of §23 (1) Nr.1 S. 1 EStG, since you had held it for at least 10 years.