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Question about german tax system (dropshipping)

Discussion in 'Business & Tax Advice' started by HofiKingston, Aug 2, 2017.

  1. HofiKingston

    HofiKingston Newbie

    Jul 28, 2017
    Likes Received:
    Hello Guys!

    first of all, i'm new at this forum and i love it :)
    So i read some methods about making some bucks online, and the amazon-ebay-dropshipping was the method which was the best one for me personally. Im a student atm, so with this method i could probably make 100-200€ each month, which would help me get through the studium.
    I tested this method one week ago, and after some costumations and testings i sold some stuff and made a profit of 11€ in 2 days.

    So my question is: the german tax system is really strict, so i have to register a business for this method for sure i think? Now, i'm not 100% familiar with the whole tax system, but after some googling and asking around, i got it like that: if you make over 17.500€ proceeds in 1 year, you have to pay ?revenue-taxes? and after you pass 25.000€ profit im 1 year, you habe to pay ?profit-taxes? (Sorry english aint my native language, i dont know the real terms for that, but i hope you know what i mean)

    Now, the thing is, without paying those taxes, i barely gain some profit after ebay and paypal fees, only about 1-2€ each sold article, so if i add at least one of the taxes, i wouldnt do any profit at all.. and with amazon-ebay dropshipping, you will pass the 17.500€ proceeds in 1 year pretty easily (or am i wrong with this?)
    I looked up, there are hundrets of german amazon to ebay dropshippers on ebay, who surely sell at least ten tousands of articles each year, so i dont understand how this is profitable for them with ebay+paypal fees and those taxes?
    Could someone light me up please? Thanks alot :)