Business income and business expenses

In short: Business income is everything the business receives in money or value. Business expenses are costs caused by the business. The difference is the profit.

In more detail: Business expenses reduce taxable profit. They must be business-related and documented. Private expenses do not count. For mixed items (phone, internet) you estimate the business share.

In detail

• Typical income: sales, services, commissions, vouchers when redeemed.
• Typical expenses: material, packaging, postage, software and subscriptions, domain and hosting, platform fees, advertising, specialist literature, insurance, account fees.
• Acquisitions: larger devices are depreciated over their useful life (Depreciation, low-value assets and purchases).
• Entertainment and gifts: there are limits and special recording duties.
• Not deductible: penalties, fines, private living costs.
• Receipts: invoice, till receipt, bank statement with purpose, self-issued receipt in case of loss.

See also: Cash-basis profit statement (EÜR), Retention periods for receipts