# tax question - freelance work



## Nononymous

I posted a preliminary version of this to the expat tax section, received some general answers, now hopefully I can be more specific.

Here's the deal: 

I'm in Berlin for five months - one down, four to go - which is of course less than 183 days. I have an unrestricted work permit with my residence permit, lucky me (apparently they like Canadians here). I have a tax number issued four years ago, but never used for anything. 

I have a freelance job that will pay me a lump sum after each ten- or fifteen-day contract. I'm just finishing the first contract so I don't actually know whether I'm expected to charge MwSt (VAT) or not. I assume that nothing will be deducted for income tax or social insurances. I've done nothing to incorporate or otherwise define myself as a business.

As far as I know, X amount of euros will be transferred to my personal bank account each time I submit an invoice.

So the question is - any idea what I must do or would likely owe? I've been too busy working to do any research, so if it's obvious, please accept my apologies. 

Thanks.


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## beppi

I believe to do this legally, you have to register a business and get a tax number.
You cannot charge MWSt without a number, but you have to charge it if the service is provided in Germany for a German customer. Only small businesses with (as far as I know) below €15k/year turnover are exempted (but still need to register).
Get a tax consultant as quickly as possible - the rules are very complex and any error will be counted in your disfavour!


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## Nononymous

Okay, thanks. I won't be below €15k at the rate things are going.

I do have a tax number.


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## Nononymous

This makes it all seem relatively straightforward:

Individual income tax for entrepreneurs in Germany < Tax | Expatica Germany

For something fairly simple I'd really rather not pay for a Steuerberater. Would it be a stupid idea to just pop round the local Finanzamt and explain the situation and ask what to do?


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## beppi

Nothing regarding taxes in Germany is "fairly simple" and a tax consultant is (in my experience) a good investment in almost all cases.
The Finanzamt might also tell you to ask a tax consultant, but it's probably worth a try to ask there first.


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## MrTweek

This is indeed a fairly complicated field that most German don't know about.
Whether or not you need to register a business (get a "Gewerbeschein") depends on the nature of your business. Since you call it freelancing, chances are you don't, but that really depends on what exactly your work is.

It might indeed be a good idea to either ask the Finanzamt (how good is your German?  ) or find a forum/community dedicated to these things.

This is nothing expat specific, but something a lot of Germans struggle with as well.

If you know some German, here's some help to classify your occupation:
http://de.wikipedia.org/wiki/Freier_Beruf_(Deutschland)

Quoted from that article, a list of occupations that don't need a "Gewerbeschein" and don't need to pay trade tax (but still regular income tax of course).


> Ärzte, Zahnärzte, Tierärzte, Heilpraktiker, Dentisten, Physiotherapeuten, Krankengymnasten, Hebammen, Heilmasseure, Diplom-Psychologen. selbstständige Gesundheits- und Krankenpfleger bzw. Altenpfleger (Pflegedienst)
> Rechtsanwälte, Notare, Patentanwälte
> Ingenieure, Vermessungsingenieure, Architekten, Handelschemiker
> Wirtschaftsprüfer, Steuerberater, beratende Volks- und Betriebswirte, vereidigte Buchprüfer, Steuerbevollmächtigte
> Journalisten, Bildberichterstatter, Dolmetscher, Übersetzer
> Lotsen, hauptberufliche Sachverständige
> Wissenschaftler, Künstler, Schriftsteller, Lehrer und Erzieher


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## Nononymous

My German is basically fluent so I'm comfortable going round to the Finanzamt. In fact I find bureaucrats to be tremendously friendly and helpful when you politely introduce yourself as a Canadian who has taken it upon himself to learn their difficult tongue.

My current Beruf is close enough to Informatiker, which is in the extended list of "similar occupations" on the Freier Beruf list. So very likely not a trade. 

Also I suspect that when you explain that you're only here for five months and have a freelance contract with one client, even the Finanzamt might opt for the simpler solution. But of course I could be wrong on that.


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## MrTweek

Yeah, especially the Finanzamt tends to be pretty friendly and helpful, especially if you basically need to know how to give them your money 
I was just worried that it might be hard to find anyone there speaking a foreign language, but you'll be fine then.
It's really hard to tell whether you Beruf is "frei" or not, but they are unlikely to bend the rules just because it's only for a limited time. One (good and bad) thing about German bureaucracy is that you always stick to the rules, no matter what.

Good luck


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## Nononymous

I would be hugely surprised if wasn't on the "frei" list - it's basically Informatiker.


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