The choice between actual and target control has a significant impact on liquidity. At the Soll taxation the sales tax already arises with invoicing, regardless of receipt of payment.
The Actual control On the other hand, more flexibility offers, since sales tax is only due when receipt of payment. Entrepreneurs can choose this method if:
- the total turnover in the previous year was not more than 800,000 euros
- they are freed from the accounting obligation
- they work as a freelancer
Especially for start-ups and smaller companies, the actual taxation offers advantages in liquidity planning. The application for actual taxation can be submitted to the tax office at any time and does not require any special forms.
In addition, accounting is simplified in the actual taxation, since the sales tax advance registration can be derived directly from the money inputs in the account. This significantly reduces administrative effort.