How do you do that without a VAT ID number?

How do you do that without a VAT ID number?

If you run a small business, you don’t need a VAT ID. At the end of the year, the tax office just wants a statement of income and expenses.

You can request a VAT ID even as a small business owner, but you don’t need it for the tax office! It just creates additional requirements when you fill out your tax forms.

Hi,

if you’re a small business owner and choose to “opt in” — that is, if you want to take advantage of the option to claim a refund of input tax (commonly referred to as VAT) as part of your advance VAT return (provided, of course, that the input tax you paid was higher than the VAT you collected!) — you’ll receive a VAT ID, because then you’ll also have to file a VAT advance return (presumably monthly at first, always by the 10th of the following month at the latest) and, after the fiscal year-end, submit a VAT return in addition to your EÜR (cash-basis profit calculation) and income tax return.
Opting in makes sense if you know you’ll have high acquisition costs (e.g., because you need to buy expensive sewing/embroidery machines or similar equipment). You just have to be aware that you’ll then be required to report and pay VAT for 5 years.
Within Europe, every business owner who sells something to other European countries is now required to remit VAT, but only after the end of the fiscal year.
Here at CP, you can take advantage of the option to have CP remit the VAT directly on your behalf as an author (however, they do not distinguish between German VAT and VAT in other European countries, so this is really only relevant for those who have opted in).

Best regards, Nina

Message deleted at the author's request.

Message deleted at the author's request.

Hello schnatter,

a tax advisor is the best person to help you with your questions and may also save you a lot of time and money.

Best regards
Alexander

@Annette
since Schnatter hasn't uploaded any patterns yet, she can't read the author forum; if I move the thread, that wouldn't be ideal.

Hi... As a small business owner, you need a VAT ID number if you want to sell to other EU countries and handle the tax matters yourself.

If you want to sell within the EU but find the tax paperwork too much of a hassle, you can, for example, grant CP the sales rights; CP will then withhold the VAT for you and remit it—the downside is that you’ll also have to pay tax on sales in Germany.

If you handle the taxes yourself, you’ll only have to pay tax on sales to other EU countries.