Micro Business Definition and Meaning Part II
As a small business owner, what do you have to consider when billing?
If you as a small business apply for the small business regulation , you will of course also benefit from some simplifications with regard to bookkeeping and taxes. This is also important for you when it comes to invoices. However, you must always state on the invoice that you, as a small business owner, work with the small business regulation. Your advantage is that you don’t have to claim sales tax and you don’t have to pass it on to the tax office. For your private customers, it matters whether you receive a micro-entrepreneur invoice without them having to pay VAT . A small business invoice from you to a business customer, on the other hand, is something different. This carries sales tax from, but cannot draw any input tax from your invoice . For this reason, your micro-entrepreneur or small business invoice must always show that you work in accordance with § 19 UStG .
According to SPORTINGOLOGY, entrepreneurs who fall under the small business regulation are not allowed to show sales tax on their invoices. So your advantage is that you don’t have to pass sales tax on to the tax office . To get an overview of invoices, take a look at our invoice templates for Word and Excel .
Register micro business
As you now know, a distinction is made between micro, small and medium-sized companies based on criteria such as the number of employees and the amount of turnover . However, there are no major differences for you when registering as a small business. You register just like the small business owner, for example. Of course, you will also be taxed as a small business owner and therefore the questionnaire on tax registration is decisive for you when you register . Important taxes are either income tax or, as a trader, trade tax. In this questionnaire when registering as a small business, you also have to make the decision whether you want to take advantage of the small business regulation . You have to check carefully in advance whether this option is suitable for you or whether it makes sense.
How to deregister your business as a small business owner
The cancellation , for example as micro-entrepreneurs in a business, is quite simple. You simply have to do this at your local trade office . You do not have to make an additional deregistration at the tax office. The tax office will be informed by the trade office about the de-registration of your small business.
GDPR: what applies to micro businesses?
There are quite a few who are of the opinion that the new GDPR does not apply to small businesses . This is a big mistake that can cost you dearly under certain circumstances. The GDPR applies to all companies and to all freelancers and therefore also to you as a small business owner . This means that you have to deal with this topic very well and that you have to observe the applicable regulations.
Small businesses in basic services
Again and again you can hear that rural areas in Germany are increasingly taking a back seat. Emigration not only of the population, but also of trade and handicrafts is the order of the day. The federal states and municipalities have recognized this problem and are therefore placing increasing emphasis on ensuring the basic supply of rural areas. Small businesses providing basic services such as bakers, butchers and craftsmen receive special support and funding . If you are interested, just ask your local authority what types of funding are available for you and how much.
Around 99% of all companies in Germany are referred to as SMEs . These Small and Medium Enterprises are divided into three different company sizes. Starting with the smallest company with no more than 10 employees, through the small company with a maximum of 50 employees to the medium-sized company with a maximum of 250 employees. Turnover also plays an important role in the division between micro-enterprises and the two other types of business .