very good question. I really had no idea about the legal stuff when I registered my business 😅 In Germany when your annual income is under a certain threshold, you just have to tell the tax office what you gained and paid for in your annual tax return (Einnahmenüberschussrechnung). So that was easy and worked for me the first years. When I got more and better paying clients I exceeded the threshold and was unsure what to do now. So I went to a tax consultant who taught me all the basics i needed to know how to make a sales tax return (I don't know if that's the correct English term - in German it's Umsatzsteuererklärung).
So it's not that hard, but a little bit annoying for people like me who just want to do their work and getting properly paid for it...
As a good developer I coded a tool for my business, where I can easily manage all my sales, taxes, yearly income etc 😇
Hi Marc,
very good question. I really had no idea about the legal stuff when I registered my business 😅 In Germany when your annual income is under a certain threshold, you just have to tell the tax office what you gained and paid for in your annual tax return (Einnahmenüberschussrechnung). So that was easy and worked for me the first years. When I got more and better paying clients I exceeded the threshold and was unsure what to do now. So I went to a tax consultant who taught me all the basics i needed to know how to make a sales tax return (I don't know if that's the correct English term - in German it's Umsatzsteuererklärung).
So it's not that hard, but a little bit annoying for people like me who just want to do their work and getting properly paid for it...
As a good developer I coded a tool for my business, where I can easily manage all my sales, taxes, yearly income etc 😇
That's a great reply, thank you!