Twitch Affiliate Small Business?

I recently started with Twitch and have now even become an afilliate and now have a few questions because I couldn't find anything specific on the internet

So I'm currently receiving unemployment benefit 1 and have an allowance of 165 euro per month

my Twitch earnings (donations + subs) never exceed this

I still wanted to be on the safe side and ask some questions. Maybe someone knows their way around better

Do I have to do something if I'm under 165 euro

register a small business?

tax anything?

and let's assume that at some point I get over these 165 euro, do I have to register a small business or how exactly does it work?

I would be very happy to hear from you

There's unfortunately no small business in Germany, but only a "small business regulation":

Tradespeople and freelance workers are entrepreneurs - no matter how small and possibly part-time self-employment.

The terms "small business" or "secondary business", which are often used, do not even exist in the reality of laws and regulations. Both are entrepreneurs.

The term "VAT" also comes from colloquial language rather than from corresponding laws. The term "sales tax" is therefore mainly used on this page.

For traders and freelancers, however, there are two procedures with regard to sales tax:

Control

The entrepreneur shows VAT / sales tax in his invoices and pays them to the tax office. Sales tax that he himself paid for deliveries or services to his company is reimbursed by the tax office.

Small business regulation according to http://www.gesetze-im-internet.de/.../__19.html

The entrepreneur does not show any value added tax / sales tax in his invoices. However, he can't get any sales tax reimbursed from the tax office.

At
Turnover below 22,000 euro per year (until 2019: 17,500 euro per year) (often at the beginning of self-employment) you can choose between these types of taxation. You can find arguments for or against the two types of taxation on my page
https://www.klicktipps.de/gewerbe-faq.php#kleinunternehmer_sinnvoll.

You have to register a business with your city or municipality as soon as you have an "intention to make a profit": "For reasons of simplification, additional income up to an annual profit of 410 euro is exempt from income tax. If your additional income is between 410 euro and 820 euro, so these are partially tax-free. This regulation is independent of the total income (http://www.gesetze-im-internet.de/estg/__46.html or http://www.gesetze-im-internet.de/...__70.html) ".

You can find more details or information, hints and many, many tips on your independent sideline in klicktipps.de under "Starting your own business" or here in the links: https://www.klicktipps.de/gewerbe.php#abgr

https://www.klicktipps.de/gewerbe-wechsel-unternehmer-kleinunternehmer.php

Is there an intention to make a profit even if all expenses that one has exclusively for the hobby (e.g. Purchased music licenses) exceed all income and one hopes that it will stay that way?

No profit intended?

Does the income remain below the expenditure (no profit), and should it stay that way in the future? Then you have
no "profit intent", and the whole thing is
From a tax point of view only a hobby. A registration as a business or freelance is not necessary.

Again read in klicktipps.de or here in the link under point 6: https://www.klicktipps.de/gewerbe.php#abgr

Happy to know Many people say something different.

This regulation can namely also be abused as follows: A married couple likes to drive their motorhome through the area and wants the tax office to participate in this "luxury" and register a business for motorhome rental.

When you submit your income tax return, this motorhome is of course tax deductible; However, the couple rents their motorhome a maximum of only once a year and therefore has no intention to make a profit - ergo, the entire tax advantage is reversed due to a lack of profit-making

Yes, that is logical. So you would say, should you ever want to make a profit, you can tell the tax office / municipality that you have been an affiliate for a long time, but only now do you want to start making profits?

Yes - it depends on the intention… As soon as sales - business expenses generate a profit?!

What if you are an affiliate and are unexpectedly and suddenly surprised by very high income - can you somehow maintain the "non-profit intention, e.g. By donating the appropriate amount?

Or can you then say, but now I want to make a profit and only register the trade after making a profit?

Unfortunately, I'm overwhelmed - a tax advisor knows more about that…

Thank you for everything. Do you perhaps know how you can legally secure yourself about your statements? Possibly even without a tax advisor?

The tax advisors are solely responsible for this; we're not allowed to give tax advice here, but only pass on information

I realize that this is not legal advice. Okay thanks.

Maybe I can bring some air into the dark there.
Also for you a little explanation of your question.

The statement "profit = output = equal to 0" that it is then only a "hobby" is correct so far. However, already 1 euro profit can be a profit intention since we then don't have a = 0 but a profit. It does not matter whether it is 1 cent or 1 euro. Profit is profit, strictly speaking.

Whether a Hahn writes afterwards is a different matter.
If you want to be on the safe side and I always recommend that, you should pick up 30 euro, walk to the trade office and register a trade. That takes 5-15 minutes and the topic is done.

can one somehow maintain the "non-profit intention, e.g. By donating the appropriate amount?

No, not.
And donations as a private person are not allowed to be accepted without further ado, they would also be linked to a few guidelines, including a donation receipt, etc.

My Twitch earnings (donations + subs) never exceed this

I would delete the word "Donation" completely. As a private person, this is legally not so easy and also requires a donation receipt, among other things. But that's another topic.

Strictly speaking, as soon as you ask for money or provide the opportunity, there's a profit intention. However, siola55 already said something in its article on the subject of "hobby" that you could take (!) BUT… It's a tricky thing with affiliate again.

Basically, if you are an affiliate at the latest & many relevant sites advise that, you should register a business. There's no "small business" here, but the so-called "small business regulation" according to § 19 UStG.

tax anything?

Yes you have to. BUT (!) Only if you exceed 22,500 euro in the 1st year.
But if you reach 50,000 euro in the second year, then you are no longer a small business owner.
But let's keep it simple: Reach 22,500 euro for now. That would be around 1875 euro per month in sales. But then you would no longer be an affiliate ^^

Either way, it is recommended to take around 30 euro in hand, register a business and submit the EUR (income-surplus invoice) to the tax office once a year, where you state your income and expenses.

You do that then, for example. Via ELSTER (online tax office).
Abpropo… I would have to do this month too, I noticed ^^

Tax anything?

Yes you have to. BUT (!) Only if you exceed 22,500 euro in the 1st year.

Unfortunately you are confusing sales tax and income tax: the "small business regulation" is about sales tax and is not relevant up to 22,000 euro per year.

The following applies to income tax: For reasons of simplification, additional income up to an annual profit of 410 euro is exempt from income tax. If your additional income is between 410 euro and 820 euro, these are partially tax-free. This regulation is independent of the total income (http://www.gesetze-im-internet.de/estg/__46.html or http://www.gesetze-im-internet.de/...__70.html).

Tax anything?

Yes, of course - you have to pay tax on the profit (Ek tax return Annex G - Income from business operations) and please do not confuse it with sales tax as Comp4ny wrongly replied with an exemption of 22,500 euro

Thank you for your detailed reply!