Tax advice for distribution companies
Sale of goods or services of the parent company in Germany
Concentration on the core business
Sales companies should concentrate on sales. This implies that other activities should be carried out as quietly as possible and without the need for large numbers of staff. Sales employees want to be bothered as little as possible and administration can often not be done remotely. The main thing is that all laws and other regulations are complied with and that you don’t get into trouble for violations.
Difficulties could be:
- Problems with the authorities due to missing applications and permits,
- late submission of declarations or late tax payments,
- Problems with customers who no longer wish to do business with the company, e.g. because the wrong legal form was chosen or invoices were not paid on time,
- Problems with employees due to deviating labor law provisions or late salary payments,
- Problems with competitors who copy unprotected intellectual property, issue warnings about their own competitive behavior or sue the company.
Especially at the beginning, it is often not worth setting up a separate HR and finance department with specialists for payroll accounting, financial accounting, the preparation of tax returns and annual financial statements and controllers. In addition, the tax expert or controller would probably be too expensive to post receipts, while the accountant would be overburdened with other highly qualified activities or as a contact person for the auditor. This is why these activities are often outsourced to an expert who can cover all these services.
Benefitax can help you as a one-stop store. Please feel free to contact us!
