How do I make corporate taxes

How do freelancers handle taxes correctly?

The value added tax, also known as VAT, is levied on any goods or services traded. This usually means that the self-employed pay this tax on the one hand when purchasing goods themselves numbers (Input tax) and they on the other hand on their goods sold by the customer to raise (Sales tax) must. The input tax paid is deducted from the sales tax levied - the remaining amount goes to the tax office.

All self-employed pay the sales tax, unless they are from the so-called Small business regulation Make use. But just like the income tax return, the self-employed must also do so VAT return Submit annually in any case - regardless of whether you actually have to pay sales tax or not.

If you are subject to sales tax, you not only have to submit an annual sales tax return, but also the regular sales tax return, if applicable. Business start-ups often submit these initially quarterly and later, depending on the sales trend, monthly to the tax office. However, there is one possible exception here as well: If the taxes paid in the previous year do not exceed a certain limit (in 2017 this was 1,000 euros), you can opt out of the Sales tax pre-registration let free. Then the effort is limited to the annual sales tax return.

For tradespeople there is also theBusiness tax return at. If a company has employees, it must also have an annual, monthly or quarterly schedule Income tax return Submit it to the tax office and pay the wage tax. But at the latest when a company has employees, a tax advisor should be consulted anyway.