How does a freelance website pay taxes

The most important taxes for freelancers at a glance

The types of taxes someone pays in Germany depends on who is moving how much money where. The most important Taxes for freelancers are therefore actually always income tax and sales tax. Then there are a few others, from vehicle tax to insurance tax. It is therefore worth taking a closer look at what taxes freelancers have to pay.

At a glance: What taxes are there for freelancers?

Since freelancers are self-employed, Freelance Taxesnumberswhich largely correspond to corporate taxes. The types of taxes that are relevant to freelancers include the following:

Income tax - the income surplus calculation for freelancers

As soon as a business activity starts, freelancers have to pay taxes. To do this, they need to determine the profit from their freelance work. What remains as income after a financial year? This is what freelancers determine using the income surplus calculation (EÜR). Income taxes are due on the taxable income. These are not always the same, but are calculated progressively. This means: the higher the income, the higher the share of taxes that is due on it. The higher one Freelance tax rate is then not due for the entire income, but only within the income bracket.

Freelancers make a quarterly advance tax payment on income tax. This is determined on the basis of the previous tax return or, in the case of founders, on the basis of an estimate, but can always be changed in the course of the year if you inform the tax office that the income has changed - up or down - and therefore the advance tax payment should be adjusted.

Sales Tax - Paying taxes as a freelance worker

Sales tax or value added tax is the tax that really everyone has to do with: The end consumer pays it, companies pass it on to the tax office and thus regard it as a transitory item. That also applies to freelancer: The sales tax collected, which is collected from customers in the form of sales tax, is transferred to the tax office minus input tax on a monthly or quarterly basis.

Sales tax return - How freelancers pay taxes

Every freelancer must independently and regularly prepare a sales tax return. The advance VAT return must be created either once a month or every quarter within a calendar year and sent to the tax office. The frequency with which the advance VAT return is submitted depends on the amount of income tax that was incurred in the previous calendar year.

Freelancers, whose annual income tax exceeds the sum of 7,500 euros, submit their sales tax return monthly. Is the Freelancer taxbetween 1,000 and 7,500 euros, then a quarterly submission is required. If you have to pay less than 1,000 euros in income tax per year, you only have to file a sales tax return once a year.

All the information that you as a freelance Advance VAT return can be found in our ePaper for advance VAT returns from us.

Working as a freelancer, paying taxes - input tax

The so-called input tax is the sales tax that the freelancer himself has paid for professional reasons, e.g. the sales tax from supplier invoices for telecommunications, tickets, office furniture, online invoicing software, etc. Just like other entrepreneurs who are subject to sales tax, freelancers can also pay theirs Deduct input tax from the sales tax you have received. Only the remaining amount has to be passed on to the tax office as collected sales tax.

What does the small business regulation say? - Taxes for freelancers

Many freelancers take advantage of the opportunity to run their business as a small business owner. Small business owners do not collect VAT from their customers. Rather, they invoice their services without VAT. For this reason, they do not collect any VAT, which they would have to pay to the tax office as VAT. In return, small businesses cannot claim input tax from their supplier invoices for tax purposes. You have to wear them yourself.

Does the road tax apply to freelancers?

The motor vehicle tax is the dog tax for cars: anyone who owns a motor vehicle pays motor vehicle taxes for it. In addition to specific pollutant and carbon dioxide emissions per kilometer driven, the basis for calculating the vehicle tax on passenger cars is the size of the cubic capacity. That concerns Freelancer with a car almost always. Whether the effort for the motor vehicle is business or private depends on how the car is used.

And the church tax?

The church tax is a so-called surcharge tax. As an appendix to income tax, the amount of church tax is calculated from the payroll or income tax. At the same time, the church tax paid can also be deducted from the tax as a special expense.

Freelance income tax - when is it levied?

Income tax is basically a synonym for income tax. The income tax is calculated from non-self-employed income. To the Taxes for freelancers The wage tax counts if a freelancer has employees whose salaries have to be paid to the tax office. For freelancers, however, wage tax is also important if the self-employed activity is carried out as a sideline in addition to an employee relationship. In this case, the freelancer will be deducted wage tax in the salaried job. The income tax return will show whether there will be a refund from the tax office in the coming year.

When is inheritance and gift tax due?

Aunt Jaqueline and Uncle Sven donate a large amount to their niece Tanja when they set up the architecture office. Extremely nice of the two: They consider it a gift. But it may well be - that depends on the amount and a few other things - that the tax office wants gift tax from it. Ideally, your uncle, aunt and niece should ask a tax advisor about the tax implications of the gift for everyone involved.

Who pays real estate transfer tax, real estate tax?

Anyone who buys a property with or without real estate on it pays real estate transfer tax and later real estate tax. Freelancers who do not own a property but have rented an office, for example, will find property tax mentioned in their rental utility bills.

Even if you are Freelancers pay taxes You usually have nothing to do with corporation and trade tax.

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You don't want to memorize all of this yourself? If you are looking for someone who is familiar with taxes, we have a list of Billomat tax consultants for you!