Germany Freelancer / Selbständiger — Einkommensteuererklärung & UStVA

Establish whether the client is a Freiberufler (liberal profession, §18 EStG — exempt from Gewerbesteuer) or Gewerbetreibender (trade, §15 EStG — Gewerbesteuer applies). Confirm residency, Steuernummer, ELSTER registration, and Kleinunternehmer status (§19 UStG threshold: EUR 22,000 prior year / EUR 50,000 current year projection). Determine if the client is in their first year of self-employment, which affects Vorauszahlungen obligations.

Self-employed individuals below the EUR 60,000 profit / EUR 600,000 turnover thresholds (§4 Abs. 3 EStG) use cash-basis accounting (Einnahmenüberschussrechnung, EÜR) rather than double-entry. Collect all Betriebseinnahmen (business income) and Betriebsausgaben (business expenses) for the calendar year, classify them per the official Anlage EÜR line items, and compute the Gewinn (profit) or Verlust (loss).

For clients subject to Regelbesteuerung (not Kleinunternehmer), reconcile the twelve monthly or four quarterly Umsatzsteuer-Voranmeldungen (UStVA) filed via ELSTER during the year against the annual Umsatzsteuererklärung. Confirm that all Umsatzsteuer collected (19% standard rate / 7% reduced rate) has been remitted, and that all Vorsteuer (input VAT) on business purchases has been correctly claimed. For Kleinunternehmer, confirm no VAT was charged on invoices.

For clients classified as Gewerbetreibender (§15 EStG), compute the Gewerbesteuer (trade tax) liability. The Gewerbeertrag (trade income) starts from the EÜR Gewinn, adjusted by Hinzurechnungen (add-backs, e.g. 25% of financing costs above EUR 100,000 per §8 GewStG) and Kürzungen (deductions). The Gewerbesteuermessbetrag is 3.5% of Gewerbeertrag above the EUR 24,500 Freibetrag. The local Hebesatz (multiplier, typically 300%–500% depending on municipality) is applied to arrive at the Gewerbesteuer payable. Note that 380% of the Gewerbesteuermessbetrag is creditable against personal Einkommensteuer (§35 EStG).

Assemble the full Einkommensteuererklärung in ELSTER, incorporating the EÜR profit, all Anlage forms (Anlage EÜR, Anlage G for trade income or Anlage S for liberal professions, Anlage Vorsorgeaufwand for insurance deductions, Anlage N if employment income exists, Anlage KAP for capital income if applicable). Apply Sonderausgaben (special deductions: pension contributions to Deutsche Rentenversicherung / berufsständisches Versorgungswerk, Krankenversicherung, Haftpflicht) and prüf the Einkommensteuer computation against the progressive tax table (Grundtabelle for singles, Splittingtabelle for married filing jointly).

Compare the computed Einkommensteuer liability against Vorauszahlungen (quarterly prepayments on 10 March / 10 June / 10 September / 10 December) already paid. Determine whether a Nachzahlung (underpayment) or Erstattung (refund) is expected after filing. If income has changed significantly from the prior year, advise on submitting an Anpassungsantrag to the Finanzamt to adjust future quarterly instalments and avoid interest charges (Nachzahlungszinsen at 1.8% p.a., interest-free for 15 months after year-end under AO §233a).

Submit the finalised Einkommensteuererklärung and Umsatzsteuererklärung via ELSTER by the statutory deadline: 31 July of the following year for self-filers, or end of February of the second following year when a Steuerberater files on behalf of the client. Review the Steuerbescheid (tax assessment notice) once issued by the Finanzamt, check for errors, and if required file an Einspruch (objection) within one month of the Steuerbescheid date. Archive all supporting documents for ten years (AO §147).