Three mistakes in a first FOP tax return
The most common reasons why Finanzamt sends an inquiry letter — and how to address them before filing.
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.
First-time returns of sole traders keep tripping over the same gaps. 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.
A letter from the Finanzamt is not an accusation. It is a question — one that is far easier to answer in advance than under stress.
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.
We explain the tax obligations of FOP and small companies — from a first EAR to Basispauschalierung. This rubric breaks down what the Finanzamt checks most often.