How to File German Freelancer Taxes
Learn how you can easily file taxes as a freelancer in Germany – all by yourself in simple English and without spending thousands of euros!
Everyone registered as a freelancer in Germany has to file German freelancer taxes each financial year.
There are three main German tax reports that freelancers must submit to Finanzamt each year. Jump to the dedicated FAQs section for each tax report below.
How to File German Freelancer Taxes (in English)
It is possible to file German freelancer taxes without a steuerberater.
There are several online tax filing tools for self-employed people in Germany. In this article we will cover two online tax filing services that are available in English and German.
English speaking freelancers in Germany can use one of the following online tax filing tools to easily file taxes as a freelancer in Germany – all by themselves in simple English and without spending thousands of euros on a Steuerberater.
- USER RATINGS (Feb 2022)
- Trustpilot: 4.1/ 5.0
- Trustedshops: NA
- LANGUAGES
- English
- German
- Customer Support in English
- FEATURES
- Free Trial
- Android/ iOS app
- Free Invoice Creation
- Overview of Income and Expenses
- Free Tax Refund Calculation
- TAX REPORTS
- Annual Tax Return (Einkommenssteuererklärung)
- Freelancers: Profit & Loss Statement (EÜR)
- Freelancers: Advance VAT Return (Umsatzsteuererklarung)
- IDEAL FOR
- Freelancers or Sole Traders
- GmbH or UG companies
- Salaried Employees
- PRICE
- Limited Features: FREE
- Small Business: €80,00/ Year
- Pro Plan: €60,00/ Quarter
- USER RATINGS (Feb 2022)
- Trustpilot: 4.1/ 5.0
- Trustedshops: NA
- LANGUAGES
- English
- German
- Customer Support in English
- FEATURES
- Free Trial
- Android/ iOS app
- Free Invoice Creation
- Overview of Income and Expenses
- Free Tax Refund Calculation
- TAX REPORTS
- Annual Tax Return (Einkommenssteuererklärung)
- Freelancers: Profit & Loss Statement (EÜR)
- Freelancers: Advance VAT Return (Umsatzsteuererklarung)
- IDEAL FOR
- Freelancers or Sole Traders
- GmbH or UG companies
- Salaried Employees
- PRICE
- Limited Features: FREE
- Basic Plan: €7,50/ Month
- Pro Plan: €15,00/ Month
Accountable
Accountable is a Belgium based online tax and accounting tool, and now it is also available to freelancers in Germany. It can be used as a web app or on iOS and Android devices making your business finances accessible from anywhere.
It offers free as well as paid plans to accommodate freelancers with varying requirements. With a free account, you can test various bookkeeping features for unlimited time.
Key features
Starting up
✅ New freelancers can register as a freelancer in Germany online in English for free.
Bookkeeping Features
✅ Freelancers can record their expenses and invoices in Accountable’s Basic and Pro plans.
✅ It is possible to import and export transactions in bulk.
File German Freelncer Taxes
✅ Freelancers can file German freelancer taxes in Accountable’s PRO plan. The tax reports include:
- Automated Advance VAT Return
- Profit and Loss Statement
- Annual Income Tax Return
On-Demand Support
✅ Freelancers can choose from several fixed rate accounting and tax filing packages from certified German tax consultants.
Other Features
✅ Freelancers can file German freelancers taxes through Accountable’s Android and iOs apps efficiently and in English or German.
✅ Freelancers can find several how-to guides on Accountable’s blog.
✅ Freelancers can use Accountable’s free Quote and Invoice generator tools
✅ Priority customer service for PRO account holders.
Sorted
Sorted is an online tax tool created to serve the tax needs of sole traders and freelancers living in Germany. It was developed by Zeitgold GmbH, a leading fintech firm that provides a digital bookkeeping platform for small businesses.
With Sorted, freelancers can file German freelancer taxes in English (or German) themselves or get professional help from certified tax consultants.
Key features
Starting Up
✅ New freelancers can register as a freelancer in Germany in English through Sorted for free.
Bookkeeping Features
✅ Freelancers can keep a track of all expenses and invoices by connecting their business bank account to Sorted.
✅ Freelancers can generate invoices within their Sorted dashboard and send them to the clients directly through Sorted.
File German Freelancers Taxes
✅ Freelancers can file German freelancer tax reports in English or German with Sorted Small Business and Pro accounts:
- Income-tax return (Steuererklärung)
- Annual VAT return (Umsatzsteuererklärung)
- Annual profit report (EÜR)
- Advance VAT return (Umsatzsteuer–Voranmeldung)
Annual Tax Reports for Freelancers in Germany
Freelancers in Germany must submit three essential annual tax reports. Learn all about them in the following sections.
Umsatz-Steuererklärung
Annual VAT Declaration
Freelancers in Germany have to submit an annual VAT declaration called Umsatzsteuererkärung.
All freelancers in Germany have to submit an annual VAT declaration.
Freelancers registered as Kleinunternehmer are not required to file this tax report.
In an Umsatzsteuererkärung you summarise all VAT ‘earned’ from clients and customers and deduct all your VAT paid on business expenses.
In short:
VAT earned – VAT paid = Amount due for payment or refund
You will submit Umsatzsteuererkärung with your annual tax return.
You can pay online via ELSTER or any online tax filing tool integrated with ELSTER.
GetSorted is the only online tax filing tool completely in English (and German!) for self-employed people in Germany.
With GetSorted you can easily prepare and submit your advance VAT payments to Finanzamt.
Anlage EÜR
Profit & Loss Statement
Anlage EÜR is a simple profit and loss statement. Freelancers in Germany have to submit this document as a part of annual tax reporting.
Every freelancer and Kleinunternehmer in Germany must submit an Anlage EÜR.
You deduct your annual expenses from your annual earnings. You are either left with profit or loss.
The profit or loss is taken into account for your annual income tax return in Germany.
In short,
Business earnings – Business expenses = Profit or Loss
You can use our German freelancer tax calculator to determine the amount of your Anlage EÜR.
The Anlage EÜR is a part of your income tax return. Therefore, it must be submitted to your responsible tax office by 31 July.
You can submit Anlage EÜR to Finanzamt online using ELSTER.
You can also use other online tax filing tool integrated with ELSTER to file your taxes in Germany.
One such tool is GetSorted which is fully available in English.
Einkommen-Steuererklärung
Income Tax Return
Einkommensteuererklärung is your annual Income tax return in German.
Every employed and self-employed individual in Germany has to file an annual income tax return.
All freelancers in Germany and Kleinunternehmer are required to submit an annual income tax return.
Your income tax is calculated based on the profit or loss generated in your Anlage EÜR.
Then you report several personal expenses such as health insurance, private liability or disability insurance, child care costs. You also report any income from additional sources such as investments, dividends or rent.
All this is considered to calculate the final amount of your income tax by Finanzamt.
You can also use our German freelancer tax calculator to determine your estimated income tax.
Your income tax return must be submitted to your responsible tax office by 31 July.
Freelancers in Germany can file their annual income tax return online using ELSTER.
You can also use other online tax filing tools to file your taxes in Germany.
We highly recommend GetSorted which is completely accessible in English and fully integrated with ELSTER.