Sole proprietor send money to partners, tax?
Hello,
I rarely sell T-shirts and sneakers on my website.
My friend sells electronics on Amazon, and his shop is very large.
I have now listed my items with him and things are going very well. I make around €10,000 in sales with my items.
We are both sole proprietors, he has his business, I have mine.
How does the whole thing work from a tax perspective?
I always send him an invoice. For example, if he makes €10,000 in sales, I send him an invoice for €10,000.
Does this make sense in terms of taxes and such? Because he doesn't have to pay any trade tax on it, since he doesn't make any profit and instead sends the income directly back.
I would really appreciate some help. We definitely don't want to set up a GmbH or UG together. We just want to sell my stuff on his Amazon.
thank you in advance!
Greetings
(2 votes)
Loading...
Of course, your business must be transparent. If your friend buys you goods and sells them in your shop without profit, he will record his revenues and expenses as usual. The rules on turnover tax should also be taken into account.
Trade tax does not apply to each individual sale with profit, the total profit of the year is used.
Reading tip: https://gruenderplattform.de/unternehmensgruenden/gewerbesteuer