If the Etsy shop operator carries out a commercial activity, his profits are also subject to trade tax

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As a sole proprietor, however, he benefits from the trade tax allowance. This is currently €24,500. If the seller has determined a lower amount with his Etsy shop, he will not be assessed for trade tax. He is, however, obliged to submit a trade tax return to the tax office.

Anyone registered on Etsy as an artist or freelancer does not have to file a trade tax return or pay trade tax to the tax office.

sales tax
Ultimately, operating an Etsy shop also incurs sales tax. Depending on what is being sold, the Etsy shop seller must add the standard tax rate (19%) or the reduced tax rate (7%) to the net value of their products.

At the end of the year, the online shop operator pakistan gambling data submits a sales tax return to the tax office. During the year, he submits a sales tax advance return to the tax office - monthly or quarterly . In this, he enters the sales tax collected and his input tax amounts.

If the Etsy shop operator meets the requirements of a small business, he can apply for this at his tax office. The condition for applying the small business regulation is that the total turnover of the online shop in the previous calendar year was less than €22,000 and is not expected to exceed the limit of €50,000 in the current calendar year.

As a small business owner, an Etsy shop owner is not allowed to show sales tax on their invoices or deduct input tax from their incoming invoices. They are obliged to submit a sales tax return.