Small business owner on Etsy income tax return?
Hello dear community!
How do you actually report profits as a small business owner on Etsy (an online platform) on your income tax return? I have many items in my Etsy shop (about 240), all of which come with free shipping. Etsy itself deducts taxes.
Can I somehow group the items into departments? How do I enter shipping costs? Do I have to enter the original price or the final price I received from Etsy?
Thank you!
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Income from commercial operations on plant G and plant EÜR
Yup, because you sell to Etsy and Etsy acts as reseller. This is why sales for you are tax-free
You need to capture each sold process individually and your accounting.
This would be operating expenditure
You specify the sales price before deduction of fees etc.
These charges then represent operating expenses.
You need his business and for this you need to submit at least a profit loss account to the tax office. You'll have to pay taxes on the profit.
Of course, you are counting on everything you had on spending and probably it is advisable for the beginning to do this once with the help of professionals (tax advisors). Whether it is worth it permanently is another question. If you don't get anything out of there, no consultant is worth it.
Of course, the amount on the invoice is the receipt. The Etsy fees (no tax) are operating expenses.
Tip: Go to the tax advisor