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Petition against the new sales tax law for small businesses


Did you even read the petition?

I have just read it, but it seems to me that there are just numerous theses being put forward there. They are not supported there. Since I am not an entrepreneur myself, I have not yet dealt with the topic, so some questions remain open for me to understand. Maybe you can help me out?

The legislature has thought along with it, and so every country has to offer a one-stop-shop - a central point of contact for companies. I give them all the data and they take care of everything. The problem: if you make use of the small business rule (<€ 17500 turnover), you cannot use the service.

If I understand UStG §19.1 correctly, small businesses (i.e. those who earn less than € 17,5000 a year) do not need to pay sales tax in Germany. Based on the assumption that there is not such a rule in all EU countries, it initially follows that a so-called "small business owner" in this country is now liable to tax. Maybe not in Germany, but in other countries where he performed his service and earned money from it. Do I see it correctly so far?
In the EU guidelines it says:
1) Who can register for the small one-stop shop?
Any taxpayer who provides telecommunications, radio and television services or electronic services for non-taxable persons in a Member State in which the registered office of his economic activity is not located and in which he is neither registered for VAT nor required to register otherwise can apply for the register small one stop shop.

It is only a guideline and not a law, but it sounds like entrepreneurs with less than € 17,500 income could also use the KEA. Of course, you cannot generally assert the status of VAT-exempt small business owner in other countries if you offer your services across the EU. It doesn't really matter whether you want to use the KEA or not. Did I get it that correctly?

In order to be able to determine in which country I have to pay sales tax, I have to find out the country of the customer. For this it is legally required to consult several sources: including the billing address, location of the bank, and ... the IP address (LOL). Now you don't get the location of the bank for every payment method. And if two sources contradict each other, I have to consult a third. I also have to save all this data for 10 years so that everything can be proven in case of doubt.

Well, that doesn't exactly sound like a problem to me. Billing address and IP address are recorded anyway and you can also find out the seat of a bank. Sure, that may take time if you want to do it by hand, but there will certainly be automated solutions for that. Or am I wrong about it? Can you somehow describe your actual extra effort? And can't you put it on your prices?

After all, you have to show the final prices including VAT BEFORE paying (otherwise there is a risk of deception and I cannot show net prices). So if I want to set the prices differently depending on the country (x net + y% VAT), I have to find out the country before paying, which doesn't make it any easier.

If you adhere to the guidelines for determining the home country of a customer (or just ask them) - are you liable if the customer tries to deceive you? If, for example, he uses any proxies in China? I mean, if you can't find out where the customer is, how does the tax office plan to do it? (does the NSA make their data available ?!) And what consequences would that have for you?

Because the law comes into force in 2 weeks and anyone who has not adjusted their infrastructure by then is breaking the law. Apart from the considerable costs of the changeover.

Although this change in tax legislation did not appear “out of nowhere”, did it? According to the IT law blog (as a source you just googled) you could register for this KEA thingy since October. Can one deduce from this that there were quite specific plans for this change in the law over three months ago? At the IHK you can even read:
Already decided in 2008, the VAT package for telecommunications, broadcasting and electronic services will be implemented in Germany at the beginning of 2015. From this point on, sales tax depends on where the shopping customer lives - and not on where the company is based. The services are therefore no longer taxed uniformly in the state where the entrepreneur providing the service is based, but at the place of consumption.
As I know myself, I (as a private person) would not deal with something like that until "five to 12" - but as a (hopefully serious) entrepreneur ...?

[QUOTE = darekkay; 108107]
[li] External services are used to sell the goods / services (AppStores, FastSpring, etc.). These then of course collect a commission.
[/ li] [/ quota]
Whereby (ideally) they also offer consideration, e.g .:

  • they take care of the taxes ... (scnr)
  • they promote and market the product
  • they help with translations into other languages ​​and porting to other platforms
  • they take over the support for the end customer
  • they take care of the payment processes
    Is there really no provider who charges a reasonable commission? With an app, for example, I wouldn't find 10% so bad if I as a developer no longer had to work with it from now on.

Wordpress developers are currently discussing stopping sales to EU citizens.

And with that we may meet the key question: Why? So far it seems to me that the future effort / the costs that will be incurred should be presented to me as "outside of what is humanly possible". So far, however, I cannot share this view. Sure, the vendors will have additional effort and costs, at least initially - but will the extent really be so gigantic that small business owners will be giving up their small businesses in a row have to? Can or want Small business owners fail to make the effort or pay taxes? It's not at all clear to me yet.

No offense, but even if the petition expressly calls for the law for “micro businesses and sole traders” to be halted, however this is defined, I still think at the moment: every fairly serious entrepreneur must be able to generate his income to be taxed. Even if it may be complex. Anyone who is unable to do so cannot become an “entrepreneur”.

PS: The prophecy that the EU will be excluded from the small business world market and even from the inner-European small business market from January does not, to be honest, knock me off my feet. What is so bad about the law, apart from the fact that some so-called small business owners may be able to make a little less mosquitos? Sure, this is annoying for the individual concerned, but it probably applies to every law.