“Me, Inc.” #2: Get an accountant!

A few days ago I spoke to Tina, who is also on her journey to become self-employed an already knows a big deal about it. Unfortunately for me I was too tired and too scatter-brained to ask her the right questions back then; something I should have done for today’s session.

Zoki, a former classmate came to visit me, because she also needed a VAT-number. “I don’t need one but my German client now wants one from me” she explained. That sounded familiar. So we plotted a course of actions while I prepared the third caramel macchiato that noon and then it was time to make a call.

Zoki writing to her client,
originally uploaded by Phil Strahl.

I geared up my Skype credits and called the local IRS and enjoyed a minute or two Dave Brubeck’s “Unsquare Dance” while I was kept on hold. Then I got a rather nice and very competent lady on the phone. “Hello, I need to make an inquiry: How do I get a VAT number?” I said. What followed were three minutes of informations about forms and where to get them and that I would better get an accountant to fill them all out. And I learned that I only need a VAT-number once the annual revenues of my business exceed 30,000 €. Of course, I could opt to charge sales tax below that limit and charge my customers. And I should get an accountant, the lady suggested. But I wanted to be sure.

“But hasn’t German tax law changed in January?”
“You mean Austrian tax law.”
“No, I mean, I have a client in Germany and he wants me to…”
“As an entrepreneur based in Austria you have to abide by Austrian tax law only.”
“Oh…”
“And I recommend you to get an accountant.”
“Thank you.”

That was it. No registered business, no annual revenue of 30,000+ € and no VAT-ID. That was the breaking point Zoki and I reached to contact our respective clients to tell them the news. We suspect them of being sly dogs, urging us to get VAT IDs we don’t need for them to save a few bucks.

“I don’t think I need to become self-employed anyway…” I pondered. Still I guess I’ll venture that step and do it. And I realized that I have my founder-workshop on 26th of April, not the upcoming Monday. So I got another week to worry.

After half an hour I already got a reply from my client who implied that I probably have to pay taxes to Germany and that he’ll look into it.

I’m not happy. Fortunately my mom is an accountant.

A few days ago I spoke to Tina, who is also on her journey to become self-employed an already knows a big deal about it. Unfortunately for me I was too tired and too scatter-brained to ask her the right questions back then; something I should have done for today's session. Zoki, a former classmate ...

Leave A Reply