{"id":3219,"date":"2022-05-24T13:33:21","date_gmt":"2022-05-24T11:33:21","guid":{"rendered":"https:\/\/interstellar.accountable.de\/?p=3219"},"modified":"2024-11-13T12:03:22","modified_gmt":"2024-11-13T11:03:22","slug":"special-permits-for-trade-registration","status":"publish","type":"post","link":"https:\/\/interstellar.accountable.de\/en\/blog\/special-permits-for-trade-registration\/","title":{"rendered":"Registering a trade business? Then you might need a special permit"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you want to start your own trade business, you may need a special permit for your activity in the form of a special license or permit. On this page you can find out which jobs these are and how the business registration works in detail.<\/span><\/p>\n<p><b>Content<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#1\"><span style=\"font-weight: 400;\">First things first: Am I a freelancer or a tradesperson?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#2\"><span style=\"font-weight: 400;\">What are the different tax obligations?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#3\"><span style=\"font-weight: 400;\">Which jobs do I need a special permit for?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#4\"><span style=\"font-weight: 400;\">How to register a trade business?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#5\"><span style=\"font-weight: 400;\">Register now<\/span><\/a><\/li>\n<\/ul>\n<h2 id=\"1\"><b>First things first: Am I a freelancer or a tradesperson?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Before we get into the specific individual cases where you need a special permit to start a business, let&#8217;s first clarify when you are considered a tradesperson and when you fall into the freelance category. This distinction determines how you have to register your self-employment and what taxes you will have to pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, you cannot simply choose which category you fall into. The distinction is made on the basis of your job. Freelance professions are basically jobs that:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">offer a service (and not goods)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">require personal expertise (e.g., through a degree or training)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">are exercised independently and in a managerial capacity.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For trades, on the other hand, the definition is a little different. You operate a trade if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">you are not practicing a freelance job or a profession in the field of agriculture and forestry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">you are engaged in an independent, sustainable activity with the intention of making a profit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">you participate in general economic transactions<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u27a1\ufe0f <\/span><a href=\"https:\/\/interstellar.accountable.de\/en\/blog\/register-freelancer-or-tradesperson\/\"><span style=\"font-weight: 400;\">Learn more about the distinction between Freelancer and tradesperson here<\/span><\/a><\/p>\n<h2 id=\"2\"><b>What are the different tax obligations?<\/b><\/h2>\n<h3><b>1. Income tax<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Both freelancers and tradesmen must file an income tax return and pay <\/span><b>income tax<\/b><span style=\"font-weight: 400;\"> once a year.<\/span><\/p>\n<h3><b>2. Determination of profit<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In addition, a <\/span><b>determination of profits<\/b><span style=\"font-weight: 400;\"> must also be submitted to the tax office, which clearly compares professional income and expenses. Freelancers can use the relatively simple income surplus statement (<\/span><i><span style=\"font-weight: 400;\">E\u00dcR<\/span><\/i><span style=\"font-weight: 400;\">) for this purpose and submit it together with their income tax return.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For tradespeople, however, it depends on how much turnover or profit they have made: Up to a turnover of 600,000 euros and a profit of 60,000 euros, they can also submit an E\u00dcR. However, as soon as they get above even one of the two limits, the much more complex double-entry bookkeeping must be applied.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u27a1\ufe0f <\/span><a href=\"https:\/\/interstellar.accountable.de\/en\/blog\/how-to-submit-your-surplus-revenue-statement\/\"><span style=\"font-weight: 400;\">This is how the income surplus statement works<\/span><\/a><\/p>\n<h3><b>3. Trade tax<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Another difference between freelancers and trades is the payment of <\/span><b>trade tax<\/b><span style=\"font-weight: 400;\">. Freelancers won\u2019t have to pay this tax, but tradespeople, on the other hand, must submit a trade tax return once a year. A so-called <\/span><i><span style=\"font-weight: 400;\">Hebesatz<\/span><\/i><span style=\"font-weight: 400;\">, or assessment rate, is used to calculate the trade tax, which varies depending on where you live. So how much you pay depends on the location of your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\ud83d\udca1 <\/span><b>Tip from Accountable: <\/b><span style=\"font-weight: 400;\">However, there is a tax free threshold for trade tax: You only have to pay trade tax if you make more than 24,500\u20ac profit per year. Everything up to this figure is exempt from trade tax.<\/span><\/p>\n<h3><b>4. VAT<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, both freelancers and tradespeople have to pay VAT. However, there is the exception of the small business regulation, where you can be exempt from paying sales tax if you can prove that your income is not exceeding a certain threshold.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u27a1\ufe0f <\/span><a href=\"https:\/\/interstellar.accountable.de\/en\/?p=3206\"><span style=\"font-weight: 400;\">Everything you need to know about the small business regulation<\/span><\/a><\/p>\n<h2 id=\"3\"><b>Which jobs do I need a special permit for?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are some jobs that fall within the scope of a trade and for which you will need a special permit. These include, but are not limited to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Security companies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Driving schools<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Restaurants and hotels<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Retailing or manufacturing of over-the-counter drugs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employment agencies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Day care centers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nursing services and private hospitals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transportation industries such as cab and bus companies<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can find the detailed list from the federal government with all occupations <\/span><a href=\"https:\/\/www.existenzgruender.de\/SharedDocs\/Downloads\/DE\/Checklisten-Uebersichten\/Steuern-Formalitaeten-Versicherungen\/04_uebersicht-Sondergenehmigungen.pdf?__blob=publicationFile\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Special permits are usually proof of passing a state exam, relevant training or study, or proof of certain documentation such as a police clearance certificate or a certificate from the health department.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To get a permit in one of the listed jobs, you can usually contact your local Chamber of Industry and Commerce (IHK).\u00a0<\/span><\/p>\n<h2 id=\"4\"><b>How to register a trade business?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In order to register a new trade, you must register with the trade office responsible for your place of residence. However, it is not your home address that is important, but the address of your company headquarters or office. Depending on the trade office, you may need an appointment for the registration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To <\/span><b>register your business<\/b><span style=\"font-weight: 400;\">, you must show a valid ID card or passport and obtain any special permits that may be required for your job and present them when registering.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You will also need to apply for your <\/span><i><span style=\"font-weight: 400;\">Gewerbeschein<\/span><\/i><span style=\"font-weight: 400;\">, or <\/span><b>trade license<\/b><span style=\"font-weight: 400;\">, at the Trade Licensing Office. This costs between 20 and 70 euros, depending on the location. After successful registration, the Trade Licensing Office will also inform the tax office and the responsible Chamber of Industry and Commerce (IHK) about your trade registration.\u00a0<\/span><\/p>\n<p>&lt; id=&#8221;1&#8243;span style=&#8221;font-weight: 400;&#8221;&gt;The tax office will then ask you to submit the<b> questionnaire for tax registration<\/b><span style=\"font-weight: 400;\">. However, you can also prepare and submit the questionnaire before the official request.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u27a1\ufe0f <\/span><a href=\"https:\/\/interstellar.accountable.de\/en\/blog\/fragebogen-zur-steuerlichen-erfassung-germany\/\"><span style=\"font-weight: 400;\">How to fill out the Fragebogen zur steuerlichen Erfassung\u00a0<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Finally, you will be contacted by the relevant IHK with information about your new mandatory membership.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\ud83d\udca1 <\/span><b id=\"5\">Tip from Accountable:<\/b><span style=\"font-weight: 400;\"> If you don&#8217;t want to wait for the tax office but want to get started with your registration directly, you can also fill out and submit the tax registration questionnaire directly on our site. <\/span><a href=\"https:\/\/registrierung.accountable.de\/en\"><b>Click here for the questionnaire.<\/b><\/a><b>\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you want to start your own trade business, you may need a special permit for your activity in the form of a special license or permit. On this page you can find out which jobs these are and how the business registration works in detail. Content First things first: Am I a freelancer or [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":3170,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[184,27],"tags":[154,340,325],"class_list":["post-3219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-become-self-employed","category-important-things-to-know","tag-gewerbe-en","tag-selbststandig-machen-en","tag-your-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>These trade businesses require a special permit | Accountable<\/title>\n<meta name=\"description\" content=\"Certain trade businesses may require a special permit. 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