Three mistakes in a first FOP tax return

The first tax return for a FOP rarely goes without surprises. Even tidy figures sometimes come back as a letter from the Finanzamt requesting an explanation — a Vorhalt, as it is known in practice. In nine out of ten cases, the reason is one of three, and all three can be addressed before filing.

We accompany dozens of first-time returns every year — and we see the same gaps each time. We will go through them one by one, with examples that have actually occurred.

First mistake: personal expenses among business ones

Coffee with a client, a laptop used only partly for work — the Finanzamt examines precisely the boundary between personal and business use. The rule is simple: an expense goes into Betriebsausgaben only if it is predominantly and provably connected to the activity. "Predominantly" in practice means more than 50%, and "provably" means a receipt, not a recollection.

The most common trap is home internet and mobile phone costs claimed without a calculation of the business share. Without a reasoned proportion, the Finanzamt is entitled to accept zero instead of the declared 100%.

Second mistake: missing the Kleinunternehmergrenze

The VAT exemption threshold is € 55,000 in annual turnover. The mistake is not in crossing it, but in finding out after the fact — when some invoices have already been issued without USt, even though they should have included it.

The solution is to count turnover every month, not once a year before filing. That is five minutes in a spreadsheet, which saves you from recalculating retroactively.

Third mistake: Belege that do not exist

The Finanzamt requires a source document not because it distrusts you, but because it is the only proof of an expense. A screenshot of a transfer without an invoice does not qualify as such. We recommend a simple habit: the invoice is photographed at the moment of payment, not searched for in an inbox a year later.

None of the three mistakes is a disaster — the Finanzamt first asks for an explanation rather than immediately imposing a penalty. But each one takes time and nerves, of which there are already precious few at the start of your own business.