Total sales calculation for different business activities: Example of a self-employed web designer.

Total sales calculation for different business activities: Example of a self-employed web designer.

According to a report by trend.at, the article deals with the small business regulation. This regulation plays a role in calculating the total turnover for a financial year. If an entrepreneur carries out various business activities, the sales from them must be added together.

A concrete example is given: A self-employed web designer achieves a total turnover of €35,000 (20% VAT) in the financial year. In addition, he has income from renting out a condominium of €5,400 (10% VAT). To calculate the net sales, the gross sales of the web design (35,000 € : 1.2 = 29,166.67 €) and the gross sales of the rental (5,400 € : 1.1 = 4,909.09 €) are calculated. The net sales are then €34,075.76.

Since the relevant net sales limit of €35,000 was not exceeded, the web designer can claim the small business regulation.

However, the small business regulation does not apply to certain transactions, such as the sale of capital goods, business disposals, intra-community acquisitions, imports, income for which the tax liability is transferred to the small business owner, as well as to all legally tax-exempt transactions such as educational services at private schools or sales of real estate.

This regulation may have an impact on the market, the consumer or the industry. Companies that can claim the small business regulation have to pay less sales tax to the tax office. This allows them to make their prices more attractive and potentially gain a competitive advantage. Consumers can benefit from lower prices when they use services from small business owners. The industry as a whole could be affected by a larger number of small businesses and thus by increased competition.

Overall, small business regulation is an important issue for entrepreneurs and tax law. It offers opportunities to reduce costs and increase competitiveness.