{"id":1058,"date":"2020-10-01T11:10:13","date_gmt":"2020-10-01T09:10:13","guid":{"rendered":"http:\/\/interstellar.accountable.de\/?p=1058"},"modified":"2023-04-27T11:18:32","modified_gmt":"2023-04-27T09:18:32","slug":"freelancing-in-germany-put-these-dates-in-your-calendar","status":"publish","type":"post","link":"https:\/\/interstellar.accountable.de\/en\/blog\/freelancing-in-germany-put-these-dates-in-your-calendar\/","title":{"rendered":"Freelancing in Germany? Put these dates in your calendar!"},"content":{"rendered":"

While being self-employed comes with a tonne of perks like the flexibility to work anywhere, manage your own schedule, and choose and refuse projects as you wish, it also comes with a lot of responsibility. Aside from juggling client deadlines, there are a number of key tax deadlines that you need to keep in mind if you want to avoid getting snowed under by an avalanche of confusing letters and late fees from the tax office.\u00a0<\/strong><\/p>\n

When freelancing in Germany<\/a>, it\u2019s key to have an understanding of what you need to report, how much you need to pay, and when. Nobody likes paying a tax bill that they don\u2019t understand, so bookmark this page and get familiar with the topics and dates below and you\u2019ll be on your way to minimising the stress and becoming a successful, self-employed professional in Germany.\u00a0<\/span><\/p>\n

Registering as a freelancer in Germany<\/span><\/h2>\n

Assuming you\u2019re already permitted to live and work in Germany, the first task you need to tick off is registering as a freelancer with your local tax office and receiving your freelance tax number. Note that registering as a freelancer is different to registering as living in Germany. While there\u2019s <\/span>no set deadline<\/b> or timeframe with which you need to do this, you won\u2019t be able to properly invoice your clients without this tax number, and you won\u2019t be able to file your tax return or claim any expenses.<\/span><\/p>\n

To register as a freelancer, you need to complete and submit a tax number registration form, or \u201cFragebogen zur steuerlichen Erfassung<\/a>\u201d to your local tax office.\u00a0<\/span><\/p>\n

Filing and paying taxes as a freelancer in Germany<\/span><\/h2>\n

The tax period<\/span><\/h3>\n

The annual tax period and financial year in Germany is from <\/span>January 1 to December 31st<\/b> each year.<\/span><\/p>\n

VAT reporting and payment<\/span><\/h2>\n

If your income from freelancing is above 22,000\u20ac a year (or if you\u2019ve estimated that it will be) it is subject to VAT (Value Added Tax) or \u201cUmsatzsteuer\u201d and you must charge and receive VAT on the goods and services that you provide and invoice for.<\/span><\/p>\n

You\u2019re also obliged to report the amount of VAT that you receive and pay this amount on to the tax office. On the plus side, you can also claim VAT on expenses you\u2019ve paid as part of your freelance operations.<\/span><\/p>\n

Reporting VAT<\/span><\/h3>\n

The first step is the advanced reporting of your VAT income, or \u201cUmsatzsteuervoranmeldung\u201d<\/a>. Some freelancers are required to do this monthly, others must do it quarterly, and in some cases, it\u2019s only required annually. If you\u2019re unclear, it\u2019s best to call or drop into your local tax office to check. Contrary to their reputation, Finanzamt workers are often friendly and helpful (especially if you speak German!).<\/span><\/p>\n

In order to avoid fines for late reporting, you must file your VAT earnings report by <\/span>the<\/b> 10th day of the month that follows the reporting period<\/b>. For example, if you report your VAT quarterly, your first deadline for the year will be April 10th, for the period of January 1st through to March 31st.\u00a0<\/span><\/p>\n

How and when: Umsatzsteuervoranmeldung for freelancers 2020<\/a><\/p>\n

Nil VAT return<\/span><\/h3>\n

In some cases, you won\u2019t be obliged to charge VAT on the work that you do. If you haven\u2019t had to charge any VAT for a particular period, you still need to declare your VAT earnings of nil, and <\/span>the deadline for reporting is the same<\/b>.<\/span><\/p>\n

Annual VAT summary<\/span><\/h3>\n

In addition to the advanced reporting of VAT, you need to file an annual VAT summary that confirms the total amount of VAT that you charged throughout the tax year. This is due by <\/span>July 31st of the following year<\/b>.\u00a0<\/span><\/p>\n

Paying VAT<\/span><\/h3>\n

You must also pay the VAT amount that you\u2019ve reported directly to the tax office. <\/span>Payment of VAT is due on the same day of reporting<\/b>, ie. the 10th day of the month following the reporting period.\u00a0<\/span><\/p>\n

Income tax return\u00a0<\/span><\/h2>\n

Just like anybody else who generates an income through working in Germany, as a freelancer you must file an income tax return or \u201cEinkommensteuererkl\u00e4rung\u201d each year \u2013 as long as you\u2019ve earned over 9.744\u20ac (as of 2021). Your income tax return is due by <\/span>July 31st of the following year<\/b>.<\/span><\/p>\n

Advanced payments<\/span><\/h3>\n

In some cases, the tax office will request that you make income tax payments in advance. It may take one or two years of freelancing before the tax office makes a calculation of how much tax you\u2019re likely to owe and asks you to pay in advance, and these payments are usually made quarterly.<\/span><\/p>\n

While it may not sound like much fun, paying taxes in advance can be much easier for your cash flow than to be hit with one big lump sum after you submit your annual income tax return.\u00a0<\/span><\/p>\n

If you\u2019re required to make quarterly advanced payments, keep these deadlines in your calendar for reference:<\/span><\/p>\n