Bookkeeping in Germany (Buchführung, SKR03 and SKR04)

How a German business keeps its books: who must keep double-entry books and who may use the cash-basis EÜR, the SKR03 and SKR04 charts of accounts, how to classify expenses and fixed assets, the statutory layouts of the P&L and the balance sheet, e-invoicing, and how long to keep records. It is for sole traders, freelancers, partnerships and small companies, and for the people who keep their books. Figures are for tax year 2026. The figures are read from the consolidated federal law pages and from finance ministry documents: the instructions for the 2026 EÜR form (ministry letter of 1 September 2026), the official depreciation table, and the GoBD and e-invoice rulings. The reduced VAT rate is printed as a digit only in the ministry's tax booklet, 2025 edition; the statute states it in words.

Section 1: Quick Reference

Field	Value
Country	Germany (Bundesrepublik Deutschland)
Currency	EUR
Financial year	Traders entered in the commercial register: the period for which they regularly close their books; moving to a year that differs from the calendar year needs the tax office's agreement. Other traders: the calendar year (§ 4a EStG). Income tax itself is assessed per calendar year (§ 2(7) EStG). A financial year may not be longer than twelve months (§ 240(2) HGB)
Accounting standards	HGB (Handelsgesetzbuch), the German Commercial Code
GAAP framework	German GAAP (GoB, Grundsätze ordnungsmäßiger Buchführung)
Standard chart of accounts	SKR03 (process-oriented) and SKR04 (financial-statement-oriented), published by DATEV
Governing body	Finanzamt (local tax office) for tax books and returns. Companies send their annual accounts to the company register (Unternehmensregister, § 325 HGB)
Key legislation	HGB, Third Book, from § 238 (Handelsbücher); EStG (Einkommensteuergesetz); UStG (Umsatzsteuergesetz); AO (Abgabenordnung)
Record retention	Ten, eight or six years, depending on the class of document. See the retention table below
Digital requirements	GoBD: the ministry's principles for books and records kept electronically and for data access by the tax office. See below

Record retention under tax law

Class of document	Keep for	Note
Source	all periods below	https://www.gesetze-im-internet.de/ao_1977/__147.html
Books and records, inventories, annual financial statements, management reports, the opening balance sheet, and the work instructions and other organisational documents needed to understand them	10 years	§ 147(3) AO: "Die in Absatz 1 Nummer 1 und 4a aufgeführten Unterlagen sind zehn Jahre"
Accounting vouchers (Buchungsbelege): the documents that support an entry	8 years	§ 147(3) AO: "die in Absatz 1 Nummer 4 aufgeführten Unterlagen acht Jahre"
Business letters received, copies of business letters sent, and other documents that matter for tax	6 years	§ 147(3) AO: "die sonstigen in Absatz 1 aufgeführten Unterlagen sechs Jahre aufzubewahren"
Customs documents under the Union Customs Code (§ 147(1) no. 4a AO)	10 years	Same sentence as the first row

• Books and vouchers no longer share one period. Older material gives one period for "books and records". The current text splits them: books and statements in the first row, vouchers in the second.
• Which documents the shorter voucher period covers. It applies to every document whose old period had not yet run out on 31 December 2024. See Art. 97 § 19a(2) EGAO at https://www.gesetze-im-internet.de/aoeg_1977/art_97__19a.html
• Start of the period. The end of the calendar year in which the last entry was made, the statements were drawn up, the letter was received or sent, or the voucher came into being (§ 147(4) AO).
• The period can run longer. It does not end while the documents still matter for a tax whose assessment period is still open (§ 147(3) AO).
• Delivery notes that are not vouchers need to be kept only until the invoice is received (incoming) or sent (outgoing) (§ 147(3) AO).
• Invoices. VAT law sets its own period for invoices issued and received: eight years from the end of the calendar year in which the invoice was issued. See § 14b(1) UStG at https://www.gesetze-im-internet.de/ustg_1980/__14b.html
• Commercial law has the same three periods for merchants. Banks, insurers and securities institutions keep vouchers for ten years. See § 257(4) HGB at https://www.gesetze-im-internet.de/hgb/__257.html

GoBD and the order rules

• What the law demands of every entry. Entries and records must be made one by one, completely, correctly, in time and in order. Cash receipts and cash payments must be recorded daily. An entry must not be changed in a way that hides its original content. See § 146(1) and (4) AO at https://www.gesetze-im-internet.de/ao_1977/__146.html
• GoBD. The ministry's principles for books, records and documents kept in electronic form and for data access. They were published by ministry letter of 28 November 2019 and changed by the letters of 11 March 2024 and 14 July 2025. First change: https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Weitere_Steuerthemen/Abgabenordnung/AO-Anwendungserlass/2024-03-11-aenderung-gobd.pdf?__blob=publicationFile&v=4
• GoBD and e-invoices. For an e-invoice it is enough to keep the structured data part, as long as the GoBD rules are met. The readable part of a hybrid invoice (for example the PDF part of a ZUGFeRD invoice) must be kept only if it holds extra or different information that matters for tax. Second change: https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Weitere_Steuerthemen/Abgabenordnung/2025-07-14-GoBD-2-aenderung.pdf?__blob=publicationFile&v=4
• Small businesses. For a small business that stays within the previous-year limit of § 19 UStG and uses the EÜR, the tax office is to judge the GoBD record demands with the size of the business in mind (first change letter, on paragraph 15 of the GoBD).

Section 2: Standard Chart of Accounts (SKR04: Abschlussgliederungsprinzip)

SKR04 is organised to mirror the balance sheet and income statement structure. SKR03 (process-oriented) is also widely used, especially by sole traders and EÜR filers. The mapping below uses SKR04 with SKR03 equivalents noted.

Account numbers were checked on 19 September 2026 against DATEV's own charts for 2026 (DATEV-Kontenrahmen nach dem Bilanzrichtlinie-Umsetzungsgesetz, SKR03 and SKR04). The copies read were DATEV's branch edition for construction and trades, and only its base accounts were used. The plain standard edition could not be read, because it sits behind DATEV's login. DATEV is a private publisher, not an official source, so it is not linked here. DATEV issues its charts per year, and a client's chart can differ. Check every number in the client's own accounting software before posting.

VAT rates used in the chart: the statute

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/ustg_1980/__12.html
Standard rate	19%	§ 12(1) UStG: "Die Steuer beträgt für jeden steuerpflichtigen Umsatz 19 Prozent der Bemessungsgrundlage"
Reduced rate	seven percent, stated in words	§ 12(2) UStG: "Die Steuer ermäßigt sich auf sieben Prozent für die folgenden Umsätze"

VAT rates used in the chart: as the ministry prints them

What	Value	Note
Source	all figures below	https://www.bundesfinanzministerium.de/Content/DE/Downloads/Broschueren_Bestellservice/steuern-von-a-z.pdf?__blob=publicationFile&v=9
Standard rate	19%	Tax booklet, 2025 edition: "den allgemeinen Steuersatz von 19 Prozent"
Reduced rate	7%	Tax booklet, 2025 edition: "den ermäßigten von 7 Prozent"

Class 0: Non-Current Assets (Anlagevermögen)

SKR04	SKR03	Account	Notes
0150	0035	Goodwill (Geschäfts- oder Firmenwert)
0135	0027	Software (EDV-Software)	Licences to industrial rights: 0140 / 0030
0400	0210	Technical equipment and machinery	SKR03 0210 is machinery (Maschinen). The SKR03 group account is 0200
0520	0320	Motor vehicles (Fuhrpark)	Cars. Trucks (Lkw): 0540 / 0350
0500	0410	Office equipment (Betriebs- und Geschäftsausstattung)
0690	0490	Other equipment, including computer hardware (Sonstige Betriebs- und Geschäftsausstattung)	DATEV's base accounts have none named for computer hardware
0650	0420	Furniture and fittings (Büromöbel)
0230	0080	Buildings on own land (Bauten auf eigenen Grundstücken)

Class 1: Current Assets (Umlaufvermögen)

SKR04	SKR03	Account	Notes
1200	1400	Trade receivables (Forderungen aus L.u.L.)
1400	1570	VAT receivable (Vorsteuer)	Input VAT
1406	1576	VAT receivable 19%	Standard rate
1401	1571	VAT receivable 7%	Reduced rate
1407	1577	VAT receivable (reverse charge)	Standard rate. Without a rate: 1408 / 1578
1800	1200	Bank	Main bank account
1810	1210	Bank account 2
1600	1000	Cash in hand (Kasse)

Class 2: Equity (Eigenkapital)

SKR04	SKR03	Account	Notes
2900	0800	Share capital / registered capital (Gezeichnetes Kapital)
2920	0840	Capital reserves (Kapitalrücklage)
2970	0860	Retained earnings (Gewinnvortrag)
2978	0868	Loss carried forward (Verlustvortrag)
2100	1800	Private withdrawals (Privatentnahmen allgemein)

Class 3: Liabilities (Fremdkapital)

SKR04	SKR03	Account	Notes
3300	1600	Trade payables (Verbindlichkeiten aus L.u.L.)
3150	0630	Bank loans (Verbindlichkeiten gegenüber Kreditinstituten)	By remaining term: one to five years 3160 / 0640, more than five years 3170 / 0650
3151	0631	Bank loans (short-term)	Remaining term up to one year
3800	1770	VAT payable (Umsatzsteuer)	Output VAT. At the standard rate: 3806 / 1776
3700	1736	Other tax liabilities
3070	0970	Accruals (Rückstellungen)	Other provisions. Tax provisions (Steuerrückstellungen): 3020 / 0955
3900	0990	Deferred income (Rechnungsabgrenzung passiv)

Class 4: Revenue (Betriebliche Erträge)

SKR04	SKR03	Account	Notes
4400	8400	Revenue from goods (Umsatzerlöse)	19% VAT. DATEV's 4000 / 8000 (Umsatzerlöse) is a free range with no VAT function
4300	8300	Revenue, reduced rate	7% VAT
4125	8125	Revenue, tax-free with input VAT deduction	Intra-EU supplies. Exports: 4120 / 8120
4100	8100	Revenue, tax-free without input VAT deduction	§4 UStG exempt
4337	8337	Revenue, reverse charge services	§13b UStG
4830	8603	Other operating income (Sonstige betriebliche Erträge)
4840	2660	Exchange gains (Erträge aus der Währungsumrechnung)	Exchange losses: 6880 / 2150 (Aufwendungen aus der Währungsumrechnung)

Class 5 & 6: Operating Expenses (Betriebliche Aufwendungen)

SKR04	SKR03	Account	Notes
5000	3000	Cost of materials / goods purchased (Wareneinkauf)	Goods for resale (Wareneingang): 5200 / 3200
5900	3100	Purchased services (Fremdleistungen)	Subcontractors
6000	4100	Salaries (Löhne und Gehälter)	Salaries alone (Gehälter): 6020 / 4120
6010	4110	Wages
6100	4130	Social security employer share	SKR04 6100 is the group account. Statutory contributions alone: 6110
6310	4200	Rent and lease expenses (Miete)	SKR03 4200 is the room costs group (Raumkosten). Rent itself: 4210
6400	4360	Insurance (Versicherungen)
6520	4520	Motor vehicle insurance
6500	4500	Motor vehicle costs (Kfz-Kosten)	Group account. Running costs such as fuel: 6530 / 4530
6600	4600	Advertising (Werbekosten)
6650	4660	Travel expenses, employees (Reisekosten Arbeitnehmer)	The owner's own trips: 6670 / 4670 (Reisekosten Unternehmer)
6640	4650	Entertainment, deductible portion	See the entertainment tables in Section 4
6644	4654	Entertainment, non-deductible portion	Always add back for tax
6490	4800	Repairs and maintenance (Instandhaltung)	SKR04 by asset type: buildings 6450, technical equipment 6460, other equipment 6470. SKR03 other repairs: 4809
6300	4900	Miscellaneous expenses (Sonstige Aufwendungen)
6815	4930	Office supplies (Bürobedarf)
6805	4920	Telephone and internet (Telekommunikation)	Internet: 6810 / 4925 (Internetkosten)
6827	4957	Professional fees, accountant	Year-end accounts. Bookkeeping fees: 6830 / 4955 (Buchführungskosten)
6825	4950	Professional fees, legal
6855	4970	Bank charges (Bankgebühren)
6837	4964	Software subscriptions	DATEV's base accounts have none named for software subscriptions. This is the account for the time-limited use of rights
6821	4945	Training and education (Fortbildung)
6220	4830	Depreciation, fixed assets (AfA Sachanlagen)	Without vehicles and buildings. Vehicles: 6222 / 4832. Buildings: 6221 / 4831
6200	4822	Depreciation, intangible assets (AfA immaterielle)
6260	4855	GWG immediate write-off	§ 6 Abs. 2 EStG. See the GWG table in Section 5
6264	4862	GWG pool depreciation (Sammelposten)	§ 6 Abs. 2a EStG. See the GWG table in Section 5
6610	4630	Gifts, deductible (Geschenke abzugsfähig ohne § 37b EStG)
6620	4635	Gifts, not deductible (Geschenke nicht abzugsfähig ohne § 37b EStG)
6348	4288	Home office room, deductible part (häusliches Arbeitszimmer, abziehbarer Anteil)
6349	4289	Home office room, non-deductible part (häusliches Arbeitszimmer, nicht abziehbarer Anteil)
6347	4287	Daily flat amount for work at home (Tagespauschale)

Class 7: Other Income/Expenses (Weitere Erträge und Aufwendungen)

SKR04	SKR03	Account	Notes
7100	2650	Interest income (Zinserträge)
7300	2100	Interest expense (Zinsaufwand)

Tax Accounts (Class 7/9)

SKR04	SKR03	Account	Notes
7600	2200	Income tax expense (Ertragsteuern)	DATEV's name for both accounts is Körperschaftsteuer (corporation tax)
7610	4320	Trade tax expense (Gewerbesteuer)	If applicable. Not a business expense for tax (§ 4(5b) EStG)
7608	2208	Solidarity surcharge (Solidaritätszuschlag)

Section 3: Revenue Recognition

Scenario	Treatment
Default (HGB § 252)	Accruals basis: income and expenses of the year are booked whatever the payment date. Profits count only when realised at the balance sheet date (Realisationsprinzip)
EÜR (Einnahmen-Überschussrechnung)	Cash basis under § 4(3) EStG. Open to anyone who is not obliged by law to keep books and close accounts and who does not do so by choice. See the limits tables below
Kleinunternehmer (§ 19 UStG)	Sales are VAT-exempt and no VAT is shown on the invoice. Revenue is recorded at the full amount received and expenses at the gross amount. See the Kleinunternehmer tables below
Advance payments received	Shown as a liability ("erhaltene Anzahlungen auf Bestellungen", § 266(3) C.3 HGB) until the work is delivered
Construction contracts	Profit counts only when realised at the balance sheet date (§ 252(1) no. 4 HGB), so long contracts are normally booked on completion, not by stage of completion
Cross-border services between businesses	Service bought from a business abroad: the German buyer owes the VAT (§ 13b UStG, reverse charge) and books output VAT and, if entitled, input VAT. Service sold to a business in another EU state: see the VAT Guide for the place of supply

EÜR vs Double-Entry Bookkeeping

Criterion	EÜR	Double-Entry (Bilanzierung)
Who must use	Nobody must. Freiberufler and businesses with no bookkeeping duty may	Merchants (§ 238 HGB). That includes trading companies (§ 6 HGB), and a GmbH counts as one (§ 13(3) GmbHG). Also commercial businesses and farmers told by the tax office that they crossed a § 141 AO limit
Revenue recognition	Cash basis	Accruals basis
Balance sheet	Not required	Required (HGB § 242)
Filing	Anlage EÜR, sent electronically with the tax return (§ 60(4) EStDV)	Bilanz and GuV, sent as E-Bilanz (§ 5b EStG)

Tax-law bookkeeping duty for commercial businesses and farmers

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/ao_1977/__141.html
Total turnover of the single business in the calendar year: the duty can start above	EUR 800,000	§ 141(1) no. 1 AO: "von mehr als 800 000 Euro im Kalenderjahr"
Profit from the business in the financial year: the duty can start above	EUR 80,000	§ 141(1) no. 4 AO: "einen Gewinn aus Gewerbebetrieb von mehr als 80 000 Euro im Wirtschaftsjahr"

• Either limit is enough. The law joins the tests with "or".
• The duty does not start by itself. It starts with the financial year that follows the tax office's notice pointing out the duty (§ 141(2) AO). It ends after the financial year that follows the one in which the tax office finds the limits are no longer crossed.
• Freelancers are not named. § 141 AO covers commercial businesses and farmers only, so a Freiberufler has no size-based bookkeeping duty under tax law.
• Duties from other laws count for tax too. Whoever must keep books under another law, for example a merchant under the HGB, must meet that duty for tax as well. See § 140 AO at https://www.gesetze-im-internet.de/ao_1977/__140.html

Commercial-law release for sole merchants

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/hgb/__241a.html
Revenue on each of two balance sheet dates in a row: not more than	EUR 800,000	§ 241a HGB: "nicht mehr als jeweils 800 000 Euro Umsatzerlöse"
Annual surplus on each of the same two dates: not more than	EUR 80,000	§ 241a HGB: "jeweils 80 000 Euro Jahresüberschuss"

• Both limits must be kept, on two balance sheet dates in a row. A new business is released at once if it keeps both limits on its first balance sheet date.
• Sole merchants only. The release is for Einzelkaufleute. Partnerships and companies cannot use it.

Kleinunternehmer limits: the statute

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/ustg_1980/__19.html
Total turnover of the previous calendar year: must not have exceeded	EUR 25,000	§ 19(1) UStG: "im vorangegangenen Kalenderjahr 25 000 Euro nicht überschritten hat"
Total turnover of the current calendar year: must not exceed	EUR 100,000	§ 19(1) UStG: "im laufenden Kalenderjahr 100 000 Euro nicht überschreitet"

Kleinunternehmer limits: how the ministry applies them

What	Value	Note
Source	all figures below	https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2026-09-01-anlage-EUER-2026.pdf?__blob=publicationFile&v=2
Business starts during the year: total turnover of the current calendar year must not exceed	EUR 25,000	EÜR instructions 2026, line 12: "darf der Gesamtumsatz im laufenden Kj. 25.000 € nicht überschreiten"
Current-year limit for a business that kept the previous-year limit	EUR 100,000	EÜR instructions 2026, line 12: "im laufenden Kj. 100.000 € nicht überschreitet"

• Both tests must be met. The previous year and the current year are joined by "and".
• Crossing a limit during the year. The sale that takes the total over the limit is already taxed under the normal rules. Sales received before that point stay exempt. The instructions say: "Die bis zum Zeitpunkt der Überschreitung vereinnahmten Umsätze sind steuerfrei."
• What counts. Total turnover (Gesamtumsatz) is worked out on payments received. Some exempt sales and sales of fixed assets are left out (§ 19(2) UStG).
• Waiver. The business may waive the rule. The waiver binds it for at least five calendar years (§ 19(3) UStG).
• Invoices. A Kleinunternehmer must not show VAT on the invoice. The invoice must carry a note that the Kleinunternehmer exemption applies. See § 34a UStDV at https://www.gesetze-im-internet.de/ustdv_1980/__34a.html

Section 4: Expense Classification

Expense Type	SKR04	Tax Treatment	Notes
Office rent	6310	Fully deductible
Home office (Arbeitszimmer)	6348/6349 (deductible part / non-deductible part)	Room costs only when the room is the centre of all business and professional work. Otherwise a daily flat amount for days worked mainly at home. See the limits table below	Record room costs separately (§ 4(7) EStG). Daily flat amount: 6347
Motor vehicle (business)	6500	Costs are business expenses. Private use is added back by the list-price method or by logbook. See the car table below	Fahrtenbuch is the alternative to the list-price method
Entertainment (business meals)	6640/6644	Deductible in part only. See the limits table and the entertainment table below	Record separately. Note place, date, participants, occasion and amount
Gifts to business partners	6610/6620 (deductible / not deductible)	Deductible only up to the yearly limit per recipient. See the limits table below	Record separately. The giver may pay a flat-rate tax for the recipient under § 37b EStG
Travel expenses	6650/6670 (employees / owner)	Travel costs deductible. Meals only at the flat daily amounts. See the meal table below
Software subscriptions	6837	Fully deductible as operating expense
Professional fees	6827/6825 (accountant / legal)	Fully deductible
Bank charges	6855	Fully deductible
Training	6821	Fully deductible	Must relate to current business
Fines and penalties	none	NOT deductible	§ 4 Abs. 5 Nr. 8 EStG
Trade tax (Gewerbesteuer)	see Tax Accounts	NOT a business expense for tax	§ 4(5b) EStG
Private withdrawals (Privatentnahme)	2100 (SKR04)	NOT deductible	Equity movement

Limits for gifts, entertainment and the home office

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/estg/__4.html
Gifts to people who are not employees: deductible only if the cost of everything given to one recipient in the financial year is not more than	EUR 50	§ 4(5) no. 1 EStG: "insgesamt 50 Euro nicht übersteigen"
Business entertainment: share of the reasonable and documented costs that may be deducted	70%	§ 4(5) no. 2 EStG: "soweit sie 70 Prozent der Aufwendungen übersteigen"
Home office room that is the centre of all business and professional work: yearly flat amount that may be taken in place of the actual costs	EUR 1,260	§ 4(5) no. 6b EStG: "pauschal ein Betrag von 1 260 Euro (Jahrespauschale)"
Daily flat amount for each calendar day on which work is done mainly at home and no first place of work is visited	EUR 6	§ 4(5) no. 6c EStG: "ein Betrag von 6 Euro (Tagespauschale)"
Yearly cap on the daily flat amounts	EUR 1,260	§ 4(5) no. 6c EStG: "höchstens 1 260 Euro im Wirtschafts- oder Kalenderjahr"

• Gifts: a cliff, not an allowance. Above the limit the whole cost for that recipient is lost, not just the excess. The statute measures "Anschaffungs- oder Herstellungskosten" and does not say net or gross.
• Home office room. Costs of the room and its furnishing are not deductible at all unless the room is the centre of the whole business and professional activity. If it is, the client takes the actual costs or the yearly flat amount. The flat amount falls by one twelfth for each full month in which the room is not the centre.
• Daily flat amount. It needs no separate room. If no other workplace is permanently available, it is also allowed on days with work away from home. It cannot be taken for a home whose costs are deducted as a second household, or next to the room deduction.
• Older material is loose here. It offers "proportional costs if dedicated room". A dedicated room is not enough: the room must be the centre of all the work.
• Fines. Fines, administrative penalties and warning charges set by a German court or authority, or by an EU state or EU body, are not deductible (§ 4(5) no. 8 EStG).
• Separate recording. Gifts, entertainment, guest houses, hunting and yachts, the home office room and unreasonable lifestyle costs must be recorded one by one and apart from other expenses. If they are not, they cannot be deducted (§ 4(7) EStG).

Entertainment: as the ministry puts it for 2026

What	Value	Note
Source	all figures below	https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2026-09-01-anlage-EUER-2026.pdf?__blob=publicationFile&v=2
Deductible share	70%	EÜR instructions 2026, line 64: "sind zu 70 % abziehbar und zu 30 % nicht abziehbar"
Non-deductible share	30%	Same sentence
Input VAT on the entertainment costs	deductible, as far as the costs are reasonable and documented	EÜR instructions 2026, line 64: "Die hierauf entfallende Vorsteuer ist allerdings abziehbar"

• Proof. Written details of place, date, participants, occasion and amount. For a restaurant, occasion and participants are enough, and the restaurant bill must be attached (§ 4(5) no. 2 EStG).
• Removed. Older material tied the input VAT to a gross amount per bill. No official page read for this Guide prints such an amount, so it is gone.

Meal flat amounts on business trips in Germany

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/estg/__9.html
Away from home and the first place of work for 24 hours, per calendar day	EUR 28	§ 9(4a) EStG: "28 Euro für jeden Kalendertag"
Day of arrival and day of departure on a trip with an overnight stay, each	EUR 14	§ 9(4a) EStG: "jeweils 14 Euro für den An- und Abreisetag"
Day without overnight stay, away from home and the first place of work for more than 8 hours	EUR 14	§ 9(4a) EStG: "14 Euro für den Kalendertag, an dem der Arbeitnehmer ohne Übernachtung"

• Business owners too. § 4(5) no. 5 EStG applies these employee amounts to the owner's own business trips.
• Three months. The flat amounts stop after the first three months of a longer job at the same place.
• Abroad. Country amounts set by the ministry replace them. They are not listed here.

Private use of a business car

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/estg/__6.html
Business use above which the list-price method applies	50%	§ 6(1) no. 4 EStG: "das zu mehr als 50 Prozent betrieblich genutzt wird"
Private use per calendar month, as a share of the German list price at first registration plus extras, VAT included	1%	§ 6(1) no. 4 EStG: "für jeden Kalendermonat mit 1 Prozent des inländischen Listenpreises"

• Logbook. The client may prove the real private share with a proper logbook instead.
• Car not used mostly for business. The list-price method is not open. The private share of the total car costs is added back.
• Electric and plug-in hybrid cars have a reduced list price under the same paragraph. Not covered here.
• Trips between home and the business premises have their own add-back for a car under the list-price method (§ 4(5) no. 6 EStG). Not covered here. See https://www.gesetze-im-internet.de/estg/__4.html

Section 5: Asset vs Expense Thresholds (GWG Rules)

GWG (Geringwertige Wirtschaftsgüter): § 6 Abs. 2/2a EStG

Cost of the single asset, less the input VAT it contains	Treatment	Note
Source	all figures below	https://www.gesetze-im-internet.de/estg/__6.html
Not more than EUR 250	Expense at once. No special register	§ 6(2) EStG asks for the register only for assets "deren Wert 250 Euro übersteigt"
More than EUR 250 and not more than EUR 800	Expense at once (a choice), or depreciate over the useful life. If expensed at once, enter the asset in a special running register, unless the books already show the data	§ 6(2) EStG: "für das einzelne Wirtschaftsgut 800 Euro nicht übersteigen"
More than EUR 250 and not more than EUR 1,000	Alternative for the whole year: one pool (Sammelposten), released at one fifth a year over five years	§ 6(2a) EStG: "für das einzelne Wirtschaftsgut 250 Euro, aber nicht 1 000 Euro übersteigen"
More than EUR 800 if the pool is not chosen, more than EUR 1,000 if it is	Capitalise and depreciate over the useful life	Asset accounts (Class 0). § 6(2) EStG allows the write-off at once only where cost does "800 Euro nicht übersteigen"

• Which assets. Movable, depreciable fixed assets that can be used on their own. A part that only works together with other assets does not qualify.
• Thresholds and VAT. The law measures cost "vermindert um einen darin enthaltenen Vorsteuerbetrag", that is, less the input VAT contained in it. The official pages read for this Guide do not say how a Kleinunternehmer applies this, so this Guide does not say either.
• Pool rules. The pool is released in the year it is formed and the four years after, one fifth each year. If a pooled asset is sold or scrapped, the pool is not reduced. The choice of the pool covers all assets of that financial year in the pool range. With the pool, only assets up to the lower limit may still be expensed at once.
• EÜR filers follow the same rules (§ 4(3) EStG). Expensed GWG are not entered in the asset schedule Anlage AVEÜR.
• Recording. Use the GWG write-off account or the asset account from the chart in Section 2.

Standard Depreciation Rates (AfA-Tabelle)

Straight-line depreciation spreads the cost evenly over the normal useful life. In the year of purchase it is cut by one twelfth for each full month before the month of purchase (§ 7(1) EStG). The ministry's table gives useful lives in years, not percentages. This Guide does not turn years into rates.

Useful lives: the ministry's table for generally usable assets (AfA-Tabelle AV)

Asset	Useful life in years	Note
Source	all periods below	https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Weitere_Steuerthemen/Betriebspruefung/AfA-Tabellen/Ergaenzende-AfA-Tabellen/AfA-Tabelle_AV.pdf?__blob=publicationFile&v=3
Cars and estate cars (Personenkraftwagen und Kombiwagen)	6	Table no. 4.2.1
Trucks (Lastkraftwagen, Sattelschlepper, Kipper)	9	Table no. 4.2.3
Office furniture (Büromöbel)	13	Table no. 6.15
Workstations, personal computers, notebooks and their peripherals	3	Table no. 6.14.3.2. See the one-year rule below
Telephone systems (Fernsprechnebenstellenanlagen)	10	Table no. 6.13.1
Communication devices, general (Kommunikationsendgeräte)	8	Table no. 6.13.2.1
Mobile phones (Mobilfunkendgeräte)	5	Table no. 6.13.2.2
Photocopiers (Vervielfältigungsgeräte)	7	Table no. 6.14.10
Cash registers (Registrierkassen)	6	Table no. 6.14.7
Shredders (Reißwölfe, Aktenvernichter)	8	Table no. 6.14.13
Goodwill of a commercial business	15	Not in the table. Set by § 7(1) EStG

• Scope of the table. It applies to assets bought or made after 31 December 2000. A sector table, where one exists, comes first for businesses of that sector.
• Computers and software: one year. The ministry accepts a useful life of one year for computer hardware, with its peripherals, and for operating and application software for data entry and processing. The cost can then be deducted in full in the year of purchase. EÜR filers must still list these assets in Anlage AVEÜR. The instructions say: "kann eine betriebsgewöhnliche Nutzungsdauer von einem Jahr" be assumed. See https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2026-09-01-anlage-EUER-2026.pdf?__blob=publicationFile&v=2
• Tax only. The ministry's text deals with tax depreciation. It says nothing about the commercial-law accounts.
• Removed. Older material gave a useful life for standard software and yearly rates worked out from the years. The table has no software line and prints no rates, so both are gone.

Buildings: yearly rates set by law

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/estg/__7.html
Building held as a business asset, not used for housing, building application after 31 March 1985	3%	§ 7(4) no. 1 EStG: "gestellt worden ist, jährlich 3 Prozent"
Other building, completed after 31 December 2022	3%	§ 7(4) no. 2a EStG: "nach dem 31. Dezember 2022 fertiggestellt worden sind, jährlich 3 Prozent"
Other building, completed before 1 January 2023 and after 31 December 1924	2%	§ 7(4) no. 2b EStG: "fertiggestellt worden sind, jährlich 2 Prozent"
Other building, completed before 1 January 1925	2.5%	§ 7(4) no. 2c EStG: "jährlich 2,5 Prozent"

• Shorter real life. If the building's real useful life is shorter than the life these rates imply, the client may depreciate over the real life (§ 7(4) sentence 2 EStG). This needs proof and is a case to refer.

Declining Balance Option (2025-2027)

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/estg/__7.html
Highest declining-balance rate, applied to the book value	30%	§ 7(2) EStG: "und 30 Prozent nicht übersteigen"
Electric vehicles bought in the same window: share of cost deductible in the year of purchase	75%	§ 7(2a) EStG: "im Jahr der Anschaffung 75 Prozent"

• Window. Movable fixed assets bought or made after 30 June 2025 and before 1 January 2028.
• Second cap. The rate may be at most three times the straight-line rate for the asset. The law says "das Dreifache" and gives no number.
• Switching. Moving from declining-balance to straight-line later is allowed (§ 7(3) EStG). Extraordinary write-downs are not allowed while the declining-balance method runs.
• Electric vehicles. After the first year the law sets a smaller share for each of the five years that follow, stated in words (§ 7(2a) EStG). The schedule cannot be combined with special depreciation.

Section 6: P&L Format (GuV: Gewinn- und Verlustrechnung)

HGB § 275 prescribes two formats. The Gesamtkostenverfahren (total cost method, by nature of expense) is standard for SMEs. The lines below follow § 275(2) HGB as it reads now: https://www.gesetze-im-internet.de/hgb/__275.html

GEWINN- UND VERLUSTRECHNUNG (Gesamtkostenverfahren)
Für das Geschäftsjahr [date]

 1. Umsatzerlöse (Revenue)                                   xxx
 2. Erhöhung/Verminderung des Bestands (Inventory changes)   xxx
 3. Andere aktivierte Eigenleistungen                        xxx
 4. Sonstige betriebliche Erträge                            xxx
 5. Materialaufwand (Cost of materials)
    a) Roh-, Hilfs- und Betriebsstoffe, bezogene Waren      (xxx)
    b) Bezogene Leistungen                                  (xxx)
 6. Personalaufwand (Personnel costs)
    a) Löhne und Gehälter                                   (xxx)
    b) Soziale Abgaben, Altersversorgung                    (xxx)
 7. Abschreibungen (Depreciation)                           (xxx)
 8. Sonstige betriebliche Aufwendungen                      (xxx)
 9. Erträge aus Beteiligungen                                xxx
10. Erträge aus anderen Wertpapieren und Ausleihungen        xxx
11. Sonstige Zinsen und ähnliche Erträge                     xxx
12. Abschreibungen auf Finanzanlagen                        (xxx)
13. Zinsen und ähnliche Aufwendungen                        (xxx)
14. Steuern vom Einkommen und vom Ertrag                    (xxx)
                                                            -----
15. ERGEBNIS NACH STEUERN                                    xxx
16. Sonstige Steuern                                        (xxx)
                                                            -----
17. JAHRESÜBERSCHUSS / JAHRESFEHLBETRAG                      xxx

The older layout with a line "Ergebnis der gewöhnlichen Geschäftstätigkeit" and separate extraordinary items is no longer in the law. Subtotals such as Gesamtleistung, Betriebsergebnis and Finanzergebnis are common in practice but are not statutory lines.

Micro companies (Kleinstkapitalgesellschaft) may use a short format with eight lines: revenue, other income, cost of materials, personnel costs, depreciation, other expenses, taxes, and the result for the year (§ 275(5) HGB). Small and medium-sized companies may combine lines 1 to 5 into one line called "Rohergebnis": https://www.gesetze-im-internet.de/hgb/__276.html

Section 7: Balance Sheet Format (Bilanz)

HGB § 266 prescribes a two-sided (account form) layout for the Bilanz. Small entities may use an abbreviated version. See https://www.gesetze-im-internet.de/hgb/__266.html

AKTIVA (Assets)                        PASSIVA (Equity & Liabilities)

A. Anlagevermögen (Non-current)        A. Eigenkapital (Equity)
   I.  Immaterielle Vermögensgeg.         I.   Gezeichnetes Kapital
   II. Sachanlagen                        II.  Kapitalrücklage
   III.Finanzanlagen                      III. Gewinnrücklagen
                                          IV.  Gewinn-/Verlustvortrag
B. Umlaufvermögen (Current)               V.   Jahresüberschuss/-fehlbetrag
   I.  Vorräte
   II. Forderungen, sonstige Verm.     B. Rückstellungen (Provisions)
   III.Wertpapiere
   IV. Kassenbestand, Bankguthaben     C. Verbindlichkeiten (Liabilities)

C. Rechnungsabgrenzungsposten          D. Rechnungsabgrenzungsposten
   (Prepaid expenses)                     (Deferred income)

D. Aktive latente Steuern              E. Passive latente Steuern
E. Aktiver Unterschiedsbetrag aus
   der Vermögensverrechnung

Small companies need show only the items marked with letters and Roman numerals. Micro companies (§ 267a HGB, Kleinstkapitalgesellschaft) need show only the items marked with letters (§ 266(1) HGB).

Section 8: Bank Reconciliation Patterns

German Bank Statement Formats

Bank	Format	Standard	Key Fields
Sparkasse	MT940 / CAMT.053	ISO standard 20022	Buchungsdatum, Betrag, Verwendungszweck
Deutsche Bank	MT940 / CSV		Wertstellungsdatum, Buchungstext, Betrag
Commerzbank	CAMT.053 / CSV	ISO standard 20022	Buchungsdatum, Name, Verwendungszweck, Betrag
Volksbank/Raiffeisenbank	MT940 / CAMT.053		Buchungstag, Empfänger/Auftraggeber, Betrag
N26 / Online banks	CSV	Proprietary	Date, Payee, Amount, Reference

Common German Transaction Descriptions

Pattern	Likely Classification
GUTSCHRIFT / HABEN	Credit: income or refund
LASTSCHRIFT / SOLL	Direct debit: expense
DAUERAUFTRAG	Standing order: rent, insurance
KARTENZAHLUNG / EC-KARTE	Card payment: check merchant
GEHALT / LOHN	Salary payment to employee (6000)
FINANZAMT / STEUERZAHLUNG	Tax payment: exclude from P&L
MIETE	Rent payment (6310)
VERSICHERUNG	Insurance (6400)
KRANKENKASSE / SOZIALVERSICHERUNG	Social security contribution (6100)
ÜBERTRAG / UMBUCHUNG	Internal transfer: exclude

DATEV Import

Most German accountants use DATEV. Bank transactions are imported via DATEV Unternehmen Online or the DATEV CSV format. The mapping from bank categories to SKR03/SKR04 accounts is the core bookkeeping task.

Section 9: Micro-Entity / Small Business Simplifications

HGB Size Classification (§ 267/267a)

Small and medium-sized companies

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/hgb/__267.html
Small company: balance sheet total not more than	EUR 7,500,000	§ 267(1) HGB: "7 500 000 Euro Bilanzsumme"
Small company: revenue in the twelve months before the balance sheet date not more than	EUR 15,000,000	§ 267(1) HGB: "15 000 000 Euro Umsatzerlöse in den zwölf Monaten vor dem Abschlußstichtag"
Small company: employees on yearly average not more than	50	§ 267(1) HGB: "Im Jahresdurchschnitt fünfzig Arbeitnehmer"
Medium-sized company: balance sheet total not more than	EUR 25,000,000	§ 267(2) HGB: "25 000 000 Euro Bilanzsumme"
Medium-sized company: revenue in the twelve months before the balance sheet date not more than	EUR 50,000,000	§ 267(2) HGB: "50 000 000 Euro Umsatzerlöse in den zwölf Monaten vor dem Abschlußstichtag"
Medium-sized company: employees on yearly average not more than	250	§ 267(2) HGB: "Im Jahresdurchschnitt zweihundertfünfzig Arbeitnehmer"
Large company	goes over at least two of the three medium-sized limits	§ 267(3) HGB

Micro companies (Kleinstkapitalgesellschaften)

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/hgb/__267a.html
Balance sheet total not more than	EUR 450,000	§ 267a(1) HGB: "450 000 Euro Bilanzsumme"
Revenue in the twelve months before the balance sheet date not more than	EUR 900,000	§ 267a(1) HGB: "900 000 Euro Umsatzerlöse in den zwölf Monaten vor dem Abschlussstichtag"
Employees on yearly average not more than	10	§ 267a(1) HGB: "im Jahresdurchschnitt zehn Arbeitnehmer"

• Two-of-three test. A company belongs to a class if it stays within at least two of that class's three limits.
• Two balance sheet dates in a row. The class changes only when the limits are crossed, or no longer crossed, on two balance sheet dates in a row. For a new or converted company the first balance sheet date decides (§ 267(4) HGB).
• Counting employees. One quarter of the sum of the staff counts on 31 March, 30 June, 30 September and 31 December, with staff abroad and without trainees (§ 267(5) HGB).
• Always large. A capital-market company in the sense of § 264d HGB always counts as large.
• Never micro. Investment companies, equity-participation companies and pure holding companies cannot be micro companies (§ 267a(3) HGB).

Simplifications by Size

Requirement	Kleinstkapitalgesellschaft	Kleine	Mittelgroße
Balance sheet	Letter items only (§ 266(1) HGB)	Letter and Roman-numeral items only (§ 266(1) HGB)	Full
GuV (P&L)	Short form with eight lines allowed (§ 275(5) HGB)	Lines 1 to 5 may be combined as "Rohergebnis" (§ 276 HGB)	Lines 1 to 5 may be combined as "Rohergebnis" (§ 276 HGB)
Notes (Anhang)	NOT required if certain details are given under the balance sheet (§ 264(1) HGB)	Required	Required
Management report (Lagebericht)	NOT required	NOT required (§ 264(1) HGB)	Required
Audit	NOT required	NOT required (§ 316(1) HGB)	Required
Publication	Balance sheet only. It may be deposited with the company register instead of being published (§ 326(2) HGB)	Balance sheet and notes only (§ 326(1) HGB)	Statements, management report and audit opinion (§ 325 HGB)
E-Bilanz	Required for tax	Required for tax	Required for tax

• Deadlines. The statements are drawn up in the first three months of the new financial year. Small companies may take longer if that fits an orderly course of business, but no more than six months. See § 264(1) HGB at https://www.gesetze-im-internet.de/hgb/__264.html
• Filing. The documents go to the company register within one year after the balance sheet date. See § 325(1a) HGB at https://www.gesetze-im-internet.de/hgb/__325.html and the reliefs at https://www.gesetze-im-internet.de/hgb/__326.html
• Correction. Older material names the Bundesanzeiger as the place of deposit. The law now names the company register (Unternehmensregister).

Sole Traders and Freelancers

Who	Test	Obligation
Sole merchant within both § 241a HGB limits on two balance sheet dates in a row	See the release table in Section 3	EÜR allowed (cash-basis simplified accounts)
Commercial business or farmer over either § 141 AO limit	See the duty table in Section 3. The duty starts only after the tax office's notice	Full double-entry bookkeeping and yearly closing
Freiberufler (any size)	None	EÜR permitted regardless of size (unless they opt for Bilanz)

Section 10: Interaction with Tax Skills

Tax Guide	How Bookkeeping Connects
de-income-tax	Profit from GuV/EÜR feeds Anlage G (Gewerbe) or Anlage S (Freiberufler) of the Einkommensteuererklärung. Non-deductible items from Section 4 (the non-deductible share of entertainment, gifts over the limit, fines, trade tax) must be added back.
de-vat-return	VAT accounts (1400 and 1406 for input VAT, 3800 and 3806 for output VAT, in SKR04) feed the Umsatzsteuer-Voranmeldung, sent electronically. Monthly or quarterly: see the VAT return table below. Input VAT (Vorsteuer) is netted against output VAT (Umsatzsteuer).
de-trade-tax	Gewerbesteuer is worked out from the adjusted trade profit. Financing costs are partly added back (Hinzurechnungen): see the trade tax table below.
de-crypto-tax	Gains on crypto held privately are private sales when sold within one year of purchase. Bookkeeping must track acquisition cost per wallet and exchange. See that Guide for the method.

VAT return rhythm

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/ustg_1980/__18.html
VAT of the previous calendar year above which the return period is the month, not the quarter	EUR 9,000	§ 18(2) UStG: "mehr als 9 000 Euro"
VAT of the previous calendar year up to which the tax office may release the business from advance returns	EUR 2,000	§ 18(2) UStG: "nicht mehr als 2 000 Euro"

• Default. The return period is the calendar quarter. The return and the payment are due by the tenth day after the period ends (§ 18(1) UStG).
• New businesses, tax periods 2021 to 2026. The expected VAT of the current year decides the period. If the business ran for only part of the previous year, that year's VAT is scaled up to a full year. Outside those tax periods the basic rule applies: monthly returns in the year of start and in the year after (§ 18(2) UStG).
• Refund cases. A business with a surplus in its favour above the first amount in the table may choose monthly returns (§ 18(2a) UStG).

Trade tax: add-back of financing costs

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/gewstg/__8.html
Allowance taken off the sum of the financing items before anything is added back	EUR 200,000	§ 8 no. 1 GewStG: "soweit die Summe den Betrag von 200 000 Euro übersteigt"

• Step 1: add up the items, each at the share the law gives. Interest and other payments for debt: in full. Annuities and permanent burdens: in full. Profit shares of a silent partner: in full. Rent, lease and leasing payments for movable fixed assets owned by someone else: one fifth (and only half of that for electric vehicles, certain plug-in hybrids and bicycles). Rent, lease and leasing payments for immovable fixed assets owned by someone else: one half. Payments for the time-limited use of rights such as licences and concessions: one quarter.
• Step 2: take off the allowance in the table.
• Step 3: add back one quarter of what is left. The law gives all these shares in words ("ein Viertel", "einem Fünftel", "der Hälfte"), so no percentages are printed here.
• Correction. Older material says a flat share of rent and a flat share of interest is added back. That skips the different shares per item and the allowance.
• Bookkeeping consequence. Keep interest, leases of movable assets, rent of immovable assets and licence fees on separate accounts, so the add-back can be worked out.

Section 11: E-invoicing between German businesses

• The duty. For a supply to another business, an invoice must be issued within six months. If supplier and customer are both established in Germany, it must be an e-invoice: an invoice issued, sent and received in a structured electronic format that allows electronic processing. The format must meet the European standard for e-invoicing. The two parties may agree on another structured format only if the required data can be extracted from it, correctly and completely, into a format that meets the standard or works with it. Sales that are exempt under § 4 nos. 8 to 29 UStG are outside the duty. See § 14(1) and (2) UStG at https://www.gesetze-im-internet.de/ustg_1980/__14.html
• A plain PDF is not an e-invoice. An invoice on paper or in another electronic format, for example a PDF with no data set inside it, is an "other invoice" (sonstige Rechnung). A hybrid file such as ZUGFeRD, a PDF that carries the structured data, can be an e-invoice: see Formats below.
• Receiving. Since 1 January 2025 every business in Germany must be able to receive e-invoices, Kleinunternehmer included. The customer's consent is not needed. E-invoices may come by e-mail, and no separate inbox just for them is needed. See the ministry's letter of 15 October 2025: https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2025-10-15-einfuehrung-obligatorische-e-rechnung.pdf?__blob=publicationFile&v=5
• Formats. The same letter names XRechnung, and ZUGFeRD from version 2.0.1 without the profiles MINIMUM and BASIC-WL, as formats that meet the European standard.
• Issuing: transition for sales made in 2025 and 2026. Until 31 December 2026 a paper invoice may still be sent, or, with the customer's consent, an invoice in another electronic format.
• Issuing: transition for sales made in 2027. The same relief runs until 31 December 2027 only if the issuer's total turnover of the previous calendar year is within the limit in the table below. Invoices sent by EDI also have until 31 December 2027.

E-invoicing: turnover limit for the 2027 relief

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/ustg_1980/__27.html
Issuer's total turnover (§ 19(2) UStG) of the previous calendar year: not more than	EUR 800,000	§ 27(38) no. 2 UStG: "im vorangegangenen Kalenderjahr nicht mehr als 800 000 Euro betragen hat"

Small invoices

What	Value	Note
Source	all figures below	https://www.gesetze-im-internet.de/ustdv_1980/__33.html
Invoice total up to which fewer details are needed and the invoice may always be an other invoice	EUR 250	§ 33 UStDV: "Eine Rechnung, deren Gesamtbetrag 250 Euro nicht übersteigt"

• Also always allowed as other invoices: invoices issued by a Kleinunternehmer (§ 34a UStDV) and passenger tickets (§ 34 UStDV).
• Bookkeeping consequence. Store incoming e-invoices in their structured form and keep them for the invoice period in Section 1.

The method, step by step

1. Decide whether the client must keep double-entry books. Merchants must under § 238 HGB, and § 140 AO carries that duty into tax law. A sole merchant within both § 241a HGB limits is released. Other commercial businesses and farmers must once the tax office has told them that a § 141 AO limit was crossed. https://www.gesetze-im-internet.de/ao_1977/__141.html
2. If there is no duty, and always for a Freiberufler, the client may use the cash-basis EÜR under § 4(3) EStG. Fixed assets, GWG and depreciation rules still apply, and fixed assets go into a running register. https://www.gesetze-im-internet.de/estg/__4.html
3. Settle the VAT status before the first invoice: Kleinunternehmer under § 19 UStG or normal taxation. Test both turnover limits in Section 3. https://www.gesetze-im-internet.de/ustg_1980/__19.html
4. Set the VAT return period under § 18 UStG from last year's VAT (Section 10). https://www.gesetze-im-internet.de/ustg_1980/__18.html
5. Set up the chart (SKR03 or SKR04) and record every transaction one by one, completely, correctly, in time and in order. Record cash daily. Never overwrite an entry. https://www.gesetze-im-internet.de/ao_1977/__146.html
6. Issue invoices within six months and as e-invoices where § 14 UStG demands it. Make sure the client can receive e-invoices (Section 11). https://www.gesetze-im-internet.de/ustg_1980/__14.html
7. Book the restricted expenses on their own accounts as § 4(7) EStG demands: gifts, entertainment, home office room. Apply the limits in Section 4. If they are mixed into other accounts, the deduction is lost. https://www.gesetze-im-internet.de/estg/__4.html
8. For each fixed asset, test the GWG limits of § 6(2) and (2a) EStG first. Otherwise capitalise it and depreciate under § 7 EStG with the useful life from the ministry's table (Section 5). https://www.gesetze-im-internet.de/estg/__6.html
9. At year end, a bookkeeping business draws up the balance sheet and the P&L (§ 242 HGB) and sends them as E-Bilanz (§ 5b EStG). An EÜR business sends the Anlage EÜR electronically (§ 60(4) EStDV). https://www.gesetze-im-internet.de/estg/__5b.html and https://www.gesetze-im-internet.de/estdv_1955/__60.html
10. For tax, add back what is not deductible (Section 4) and pass the figures to the income tax, VAT and trade tax Guides (Section 10). https://www.gesetze-im-internet.de/gewstg/__8.html
11. Keep every document for the period in the retention table in Section 1. Doing this step early matters: a voucher thrown away too soon cannot be replaced. https://www.gesetze-im-internet.de/ao_1977/__147.html

Ask the client first

• What is the legal form, and is the business entered in the commercial register (sole merchant, partnership, GmbH or UG, Freiberufler)?
• What were turnover and profit in the last two financial years, and has the tax office sent a notice to start keeping books?
• Is the business a Kleinunternehmer? What was last year's total turnover, what is expected this year, and was the rule ever waived?
• Who are the customers: German businesses (e-invoice duty), consumers, or customers abroad?
• Is anything used both privately and for the business: a car, a room at home, a phone? For a room at home, is it the centre of all the client's work?
• Which accounting software and which chart (SKR03 or SKR04) are in use, and who records the cash?

When to refuse or refer

• Annual financial statements of companies, audits, publication questions and group accounts. Refer to a Steuerberater or Wirtschaftsprüfer.
• Banks, insurers and securities institutions: they have their own accounting and retention rules.
• Farming and forestry: different financial year and extra rules.
• Payroll accounting and social security.
• Cross-border VAT beyond the basic reverse charge: place of supply, intra-EU supplies, the one-stop shop. See the German VAT Guide.
• Working out income tax, corporation tax or trade tax. This Guide only feeds them.
• Electric and hybrid company cars, and any car whose private use is disputed.
• A building depreciated over a shorter real useful life.
• Cash registers and their technical security device (§ 146a AO).
• IFRS accounts.
• Exact account numbers for one client: Section 2 shows DATEV's base account numbers for 2026. Sector charts and a client's own chart can differ. Confirm every number in the client's software.
• How a Kleinunternehmer measures the GWG limits, and whether the gift limit is net or gross: the official pages read for this Guide do not say.

Sources

• AO § 140, § 141, § 146, § 147 (bookkeeping duty, order rules, retention): https://www.gesetze-im-internet.de/ao_1977/__140.html and https://www.gesetze-im-internet.de/ao_1977/__141.html and https://www.gesetze-im-internet.de/ao_1977/__146.html and https://www.gesetze-im-internet.de/ao_1977/__147.html
• EGAO Art. 97 § 19a (start of the shorter voucher period): https://www.gesetze-im-internet.de/aoeg_1977/art_97__19a.html
• GmbHG § 13 (a GmbH is a trading company): https://www.gesetze-im-internet.de/gmbhg/__13.html
• HGB § 1, § 6, § 238, § 240, § 241a, § 242 (merchants, bookkeeping duty, release): https://www.gesetze-im-internet.de/hgb/__1.html and https://www.gesetze-im-internet.de/hgb/__6.html and https://www.gesetze-im-internet.de/hgb/__238.html and https://www.gesetze-im-internet.de/hgb/__240.html and https://www.gesetze-im-internet.de/hgb/__241a.html and https://www.gesetze-im-internet.de/hgb/__242.html
• HGB § 252, § 257 (valuation principles, retention): https://www.gesetze-im-internet.de/hgb/__252.html and https://www.gesetze-im-internet.de/hgb/__257.html
• HGB § 264, § 266, § 267, § 267a, § 275, § 276 (statements, layouts, size classes): https://www.gesetze-im-internet.de/hgb/__264.html and https://www.gesetze-im-internet.de/hgb/__266.html and https://www.gesetze-im-internet.de/hgb/__267.html and https://www.gesetze-im-internet.de/hgb/__267a.html and https://www.gesetze-im-internet.de/hgb/__275.html and https://www.gesetze-im-internet.de/hgb/__276.html
• HGB § 316, § 325, § 326 (audit, publication): https://www.gesetze-im-internet.de/hgb/__316.html and https://www.gesetze-im-internet.de/hgb/__325.html and https://www.gesetze-im-internet.de/hgb/__326.html
• EStG § 2, § 4, § 4a, § 5, § 5b, § 6, § 7, § 9, § 37b: https://www.gesetze-im-internet.de/estg/__2.html and https://www.gesetze-im-internet.de/estg/__4.html and https://www.gesetze-im-internet.de/estg/__4a.html and https://www.gesetze-im-internet.de/estg/__5.html and https://www.gesetze-im-internet.de/estg/__5b.html and https://www.gesetze-im-internet.de/estg/__6.html and https://www.gesetze-im-internet.de/estg/__7.html and https://www.gesetze-im-internet.de/estg/__9.html and https://www.gesetze-im-internet.de/estg/__37b.html
• EStDV § 60 (EÜR sent electronically): https://www.gesetze-im-internet.de/estdv_1955/__60.html
• UStG § 12, § 13b, § 14, § 14b, § 18, § 19, § 27: https://www.gesetze-im-internet.de/ustg_1980/__12.html and https://www.gesetze-im-internet.de/ustg_1980/__13b.html and https://www.gesetze-im-internet.de/ustg_1980/__14.html and https://www.gesetze-im-internet.de/ustg_1980/__14b.html and https://www.gesetze-im-internet.de/ustg_1980/__18.html and https://www.gesetze-im-internet.de/ustg_1980/__19.html and https://www.gesetze-im-internet.de/ustg_1980/__27.html
• UStDV § 33, § 34a (small invoices, Kleinunternehmer invoices): https://www.gesetze-im-internet.de/ustdv_1980/__33.html and https://www.gesetze-im-internet.de/ustdv_1980/__34a.html
• GewStG § 8 (trade tax add-backs): https://www.gesetze-im-internet.de/gewstg/__8.html
• Finance ministry, EÜR form and instructions for 2026, letter of 1 September 2026: https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2026-09-01-anlage-EUER-2026.pdf?__blob=publicationFile&v=2
• Finance ministry, depreciation table for generally usable assets (AfA-Tabelle AV): https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Weitere_Steuerthemen/Betriebspruefung/AfA-Tabellen/Ergaenzende-AfA-Tabellen/AfA-Tabelle_AV.pdf?__blob=publicationFile&v=3
• Finance ministry, GoBD change letters of 11 March 2024 and 14 July 2025: https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Weitere_Steuerthemen/Abgabenordnung/AO-Anwendungserlass/2024-03-11-aenderung-gobd.pdf?__blob=publicationFile&v=4 and https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Weitere_Steuerthemen/Abgabenordnung/2025-07-14-GoBD-2-aenderung.pdf?__blob=publicationFile&v=4
• Finance ministry, e-invoice letter of 15 October 2025: https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2025-10-15-einfuehrung-obligatorische-e-rechnung.pdf?__blob=publicationFile&v=5
• Finance ministry, tax booklet (Steuern von A-Z), 2025 edition: https://www.bundesfinanzministerium.de/Content/DE/Downloads/Broschueren_Bestellservice/steuern-von-a-z.pdf?__blob=publicationFile&v=9

Disclaimer

This Guide and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this Guide. All outputs must be reviewed and signed off by a qualified professional (such as a Steuerberater or Wirtschaftsprüfer) before filing or acting upon.

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