How to Charge VAT as a Freelancer in Germany

How to Charge VAT as a Freelancer in Germany: A Guide for Expats

Moving to Germany? Unsure How to Handle VAT as a Freelancer?

Navigating Germany’s complex bureaucracy can be daunting—especially for expats stepping into life as a freelancer. Suddenly, everything from tax forms to legal obligations is in German, and even a simple invoice can feel like a puzzle. Are you wondering how to charge VAT as a freelancer in Germany? Confused about whether you qualify for the Kleinunternehmerregelung (small business rule)? You’re not alone!

At liveingermany.de, we’ve helped thousands of expats—from digital nomads to creative professionals—take the leap into successful freelancing by providing up-to-date, step-by-step guidance. This guide will walk you through everything you need to know about charging VAT as a freelancer in Germany. Whether you’re brand new or want to ensure compliance, here’s your roadmap to stay organized, legal, and stress-free.

The Expat Challenge: Facing German Bureaucracy

Picture this: You’ve just landed a client in Berlin or Munich, and your first freelance project is about to kick off. Excitement turns to anxiety when you realize your invoice must include VAT—and you’re unsure where to begin. Many expats struggle to navigate the rules and paperwork, fearing heavy fines or costly mistakes.

Personal Story: Take Maria, a graphic designer from Spain, who moved to Hamburg. She quickly discovered that even after sorting out her residence permit, German tax requirements could make or break her freelance venture. It’s a common story: uncertainty about VAT leads to avoidable errors or lost contracts.

Step-by-Step: Your Guide to Charging VAT as a Freelancer in Germany

1. Registering with the Finanzamt

First things first: Every freelancer (expat or German citizen) must register their freelance activity with the local tax office (Finanzamt).

• Submit the “Fragebogen zur steuerlichen Erfassung”: This tax registration form is your entry into the German freelance system.
• Receive your tax numbers: The Finanzamt will issue your Steuernummer (tax number) and, if you need to charge VAT, a unique VAT identification number (USt-IdNr).

Reference: myGermanExpert - Freelancing in Germany, Norman Finance VAT Guide.

2. Determining Your VAT Obligation

• Standard VAT requirement: The vast majority of freelancers must charge VAT (Umsatzsteuer), typically at a rate of 19% on invoices to German clients. Some services may qualify for the reduced 7% rate.
• Kleinunternehmerregelung (Small Business Rule): If your total turnover was under €22,000 last year and will not exceed €50,000 this year, you may opt for the Kleinunternehmerregelung.
  • If you choose this rule: Do not charge VAT but state your exemption on every invoice (referencing §19 UStG).
  • Otherwise: You must charge VAT on all applicable invoices.

Learn more: Germany-Visa.org – Taxes for Freelancers.

3. What to Include on Your Invoice

German bureaucracy loves details! Your invoice must contain:

• Your full name and address
• Your Steuernummer and/or VAT ID (USt-IdNr)
• The client’s name and address
• Invoice number and date
• Detailed description of service provided
• Net amount, VAT amount, and gross total
• The VAT rate applied (usually 19% or 7%)
• If Kleinunternehmer: Statement about VAT exemption under §19 UStG

Tip: Failing to include these details can delay payments—or put you in trouble with the Finanzamt.

4. Collecting and Remitting VAT

• Add VAT to invoices: The VAT is added to your net service charge.
• Responsibility: You must remit this VAT to the Finanzamt, whether or not your client pays on time.
• Common mistake: Many new freelancers think they only pay VAT when they receive client payment. In Germany, VAT is owed when the invoice is issued!

Source: Norman Finance VAT Guide.

5. Filing VAT Returns (Umsatzsteuervoranmeldung)

• Submit VAT returns via the ELSTER online platform.
• Frequency:
  • Under €2,000 VAT/year: Annually
  • €2,000–€9,000 VAT/year: Quarterly
  • Over €9,000 VAT/year: Monthly
• Deadlines: Submit by the 10th day after each period ends. Late filings can trigger penalties.

Source: Norman Finance Blog

6. Pay VAT to the Finanzamt

Once you’ve filed your VAT return, pay the exact amount due. The Finanzamt often allows for hassle-free direct debit (Lastschrift) to ensure you don’t miss a due date.

7. Special Notes for Expats

• Both German citizens and expats must abide by the same VAT rules (liveingermany.de/vat-freelancer)
• Hire tax advisors familiar with expat situations—especially if you work for clients outside Germany/EU.
• Different VAT rules apply for international clients. Always check with the Finanzamt or a professional tax consultant!

Actionable VAT Compliance Checklist

• ✅ Register at your local Finanzamt
• ✅ Determine VAT status/Kleinunternehmerregelung
• ✅ Obtain a VAT ID (if liable)
• ✅ Collect and record VAT on each invoice
• ✅ Submit VAT returns via ELSTER and pay any dues
• ✅ Keep tidy records of invoices and communications

Remember: Non-compliance could mean back payments or fines. Organized, timely records are your safety net!
Source: Norman Finance VAT Guide.

Practical Tips for Expats: Make VAT Simpler

1. Digitize Your Paperwork

Use online accounting tools (like SevDesk, Lexoffice, or Sorted) available in English. They automate invoice templates, remind you of deadlines, and offer ELSTER integrations.

2. Find English-Speaking Help

Germany’s tax lingo can be intimidating. Seek out English-speaking tax advisors or join expat Facebook groups for recommendations and support. Real people have navigated these exact issues—don’t reinvent the wheel!

3. Keep Communication Documented

Whether you’re consulting with the Finanzamt or exchanging with clients, keep email threads and confirmations. This makes problem-solving smoother if there’s a billing or regulatory question down the line.

What’s the biggest hurdle you face settling in Germany? Share your story in the comments!

Need Support? Recommended Expat Services

Liability insurance is crucial for freelancers and highly recommended in Germany. If you want affordable, English-language coverage to protect yourself against claims, consider:

Need liability insurance for freelancers in Germany? Try Liability Insurance | Feather—offering flexible, English-friendly protection for expats. Learn more.

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Live in Germany’s Expertise: Your Trusted Expat Resource

At liveingermany.de, our guides are written and reviewed by real expats who’ve personally faced Germany’s administrative maze. Our mission is to demystify German bureaucracy with clear, practical guidance—ensuring every freelancer, digital nomad, or creative professional can confidently launch their career here.

Why trust us?
- Our guides are based on government websites, validated by experienced tax advisors, and continuously updated. - Community-driven: Trusted by thousands of internationals across Germany. - Extensive resource library: From tax checklists to housing hacks, we cover it all for expats.

Ready to take the next step? Join our community and access exclusive checklists, a friendly expat forum, and up-to-date resources tailored to your journey.

Sources

• Germany-Visa.org: Taxes for Freelancers and Self-Employed
• Norman Finance: VAT Guide
• MyGermanExpert: Freelancing in Germany
• liveingermany.de: How to Charge VAT as a Freelancer

Explore all you need to know about how to charge VAT as a freelancer in Germany—simplified for newcomers and expats.

This guide is for informational purposes only. Please consult a qualified tax advisor for personal advice. Data verified as of 2025.

Frequently Asked Questions

What is “how to charge VAT as a freelancer in Germany”?

Charging VAT as a freelancer means adding the appropriate tax (usually 19%) to your invoices if you surpass small-business thresholds or don’t apply for VAT exemption (Kleinunternehmerregelung). It helps the government track your revenue and ensures compliance with German law.

How do I get started with charging VAT as a freelancer in Germany?

Begin by registering your freelance activity with the Finanzamt. Decide if you’re eligible for the Kleinunternehmerregelung. If not, apply for a VAT ID, issue VAT-compliant invoices, collect VAT from clients, and file returns via ELSTER. Stay organized—good documentation protects you!

Is charging VAT as a freelancer in Germany available for expats?

Absolutely. The rules are the same for expats and citizens. If you freelance for clients in Germany (or within the EU), you must comply with local VAT regulations. Seek out English-speaking tax advisors with experience helping internationals for a smooth setup.