Taxes for an on line retail business with high business expenses?
I’m an Italian citizen, born and raised in the USA. I have a small online retail business in America that I run together with my wife and two adult children. Our total sales per year is to between 70.000 to 85.000 euros; however, around 50% of this is spent on business expenses, such as fees for online selling venues, postage and buying items for resale.
We woud like to move our business to France, which I understand should be no problem as my children and I are European Union citizens. I read in another forum post, that if we registered as auto-entrepreneurs, we could not deduct business expenses and would have to pay tax on our full turnover. Could you please tell me if this rule applies to all expenses and if so would we be taxed on the full 70+ thousand, even though our actual profits would be only half of that? If that is the case, could you recommend another business structure in which we would not be taxed as heavily?
Thank you very much for your help.