Know the taxes – as an entrepreneur, you are responsible
An entrepreneur must take care of taxes themself – at least check the advance taxes and VAT liability. In uncertain situations, you can always ask the tax authorities or an expert for advice.
As an entrepreneur, you are responsible for ensuring that tax matters are handled correctly and in time. Taxation involves obligations for both the company and the entrepreneur, and it is important to understand how different taxes are formed and how to prepare for them.
Your company pays income tax on its income and the amount depends on the form of the company – for example, a limited liability company pays income tax on the company’s profits, while a sole entrepreneur pays the taxes in their personal taxation. For business income, advance taxation is applied for and paid on the basis of the estimated result. The tax authority does not send the prepayment decision automatically, but it must be applied for through MyTax.
Remember that if you are not in the prepayment register, your customer is obliged to withhold and pay taxes on your behalf. This may prevent orders from being received, so it is important to remain in the register. If the income changes during the year, the advance tax can be changed at any time.
Value added tax (VAT) is an important part of operations in almost all companies. The VAT is added to the sales price and paid to the state, that is, it is not the company’s money. Remember to register into the VAT register if your revenue exceeds the annual limit set by the tax authority.
Accounting, storing receipts and up-to-date monitoring play a key role in tax management. A good accounting firm helps, but the entrepreneur retains the responsibility.
