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If you make and sell drawings, are the drawing materials (e.g. pens) and paper supplies considered trade goods or general expenses? What is the essential difference between selecting one option over the other?
If you make and sell drawings, are the drawing materials (e.g. pens) and paper supplies considered trade goods or general expenses? What is the essential difference between selecting one option over the other?
That seems like a grey area to me; there are arguments for both options, of course (merchandise or materials). But I would lean towards materials. (That way, you don't have to keep track of inventory every year.)
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.