How to Charge VAT as a Freelancer in Germany

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

Step-by-step guide on how-to-charge-vat-as-a-freelancer-in-germany for expats living in Germany.

Moving to Germany and Overwhelmed by Bureaucracy?

If you’re an expat freelancer in Germany, stumbling through bureaucratic red tape is probably one of the first “local experiences” you encounter—often with a mix of confusion and mild panic. One common misconception among newcomers is that the German tax system is insurmountable without perfect language skills or a network of local connections. But here’s the reassuring truth: with the right guidance and factual information, clearing administrative hurdles like charging VAT (Umsatzsteuer) as a freelancer is not only possible—it’s manageable.

This guide for expats in Germany will take you through the essentials of how-to-charge-vat-as-a-freelancer-in-germany. From legal requirements and practical steps to cultural insights and insider tips, we break down everything you need to know, drawing on deep local experience and the expertise that liveingermany.de brings as a trusted resource for thousands of internationals.

The Expat Freelancer’s VAT Challenge: Why it Feels So Complicated

Imagine Alice, a graphic designer from Brazil, excited to launch her freelance career in Berlin. She quickly learns that landing clients is only half the battle—the real obstacle is the infamous German bureaucracy. Phrases like “Kleinunternehmerregelung” and “Umsatzsteuervoranmeldung” sound intimidating, forms are in German, and everyone insists there’s a right (and a very wrong) way to handle taxes.

For many expats, the stress isn’t only financial—there’s a persistent fear of making bureaucratic mistakes, facing fines, or missing out on clients because invoices aren’t compliant. The emotional toll can be significant: “Am I charging the right VAT? What if I forgot to register something? Will a misstep haunt me for years?”

If this sounds familiar, you’re not alone. Every expat who freelances in Germany faces these questions. The good news? The system isn’t as arcane as it seems once you break it down—the process applies equally to German nationals and foreigners. Knowledge is power, and clarity brings confidence.

How to Legally Charge VAT as a Freelancer in Germany: Step-by-Step Guidance

Here’s how to legally charge VAT as a freelancer in Germany—essential for anyone offering services above certain income thresholds or working with business clients.

1. Register Your Freelance Activity with the Finanzamt

Action: Complete and submit the “Fragebogen zur steuerlichen Erfassung” (tax registration form) to your local tax office (Finanzamt). Many regions offer this process online via ELSTER, Germany’s electronic tax portal. While the forms are mainly in German, some platforms like myGermanExpert offer English-language support. This ensures you don’t miss crucial details due to language barriers (source).

What you’ll receive: - Steuernummer (tax number): Always required for invoicing and tax returns. - Umsatzsteuer-ID (VAT number): Mandatory if you’ll charge VAT; optional if you qualify for (and opt into) the Kleinunternehmerregelung (see below) (source, liveingermany.de).

2. Determine if You Must Charge VAT (Umsatzsteuer)

• If your annual gross turnover is less than €22,000 (previous year) and not expected to exceed €50,000 (current year), you can use the Kleinunternehmerregelung (small business rule). That means you:
• Do not charge VAT on invoices.

• Cannot deduct input VAT on your business expenses. (source, germany-visa.org)

• If you exceed these thresholds, or opt out of the Kleinunternehmerregelung:

• You must charge VAT to your clients—typically 19% (standard rate) or 7% (reduced rate for certain goods/services) (source).

3. Issue VAT-Compliant Invoices

A legal invoice in Germany isn’t just a receipt. Yours must always include: - Your VAT number (if applicable) - The VAT amount and rate you’re charging - Your Steuernummer - Date, unique invoice number, client details, and a clear service description

Failing to charge or remit VAT when required can result in fines and tax debts—even if your mistake was unintentional (source).

4. Collect and Remit VAT—Don’t Skip This Step!

All the VAT you collect from clients isn’t yours to keep. It must be transferred to the Finanzamt through regular VAT returns (Umsatzsteuervoranmeldung). The frequency is based on your VAT liability last year:

• Less than €2,000: Annual returns
• €2,000–€9,000: Quarterly returns
• Over €9,000: Monthly returns

All returns are filed online via ELSTER, and the deadline is typically the 10th day of the following period. Late filings trigger fines, so punctuality is non-negotiable in the German system (source).

Expat-Specific Insights & Solutions

• No special exceptions for foreigners—rules apply equally (liveingermany.de).
• Language help is available: Use tax advisors experienced with expats or services like myGermanExpert for support in English.
• Records: Keep detailed records of invoices and all VAT transactions; German bureaucracy is rigorous about documentation.

Practical Tips for Expats

1. Checklist for Getting Started

• Register as a freelancer at your Finanzamt
• Decide about (or opt out of) Kleinunternehmerregelung on your registration form
• Apply for your Steuernummer and, if needed, your Umsatzsteuer-ID
• Set up ELSTER access (the earlier, the better!)
• Use invoice templates that meet German legal VAT requirements
• Consult a qualified tax advisor if in doubt

2. Tools & Services Can Simplify Your Life

Need a stress-free way to manage taxes as an expat freelancer? Consider using a digital tax service designed for internationals in Germany:

Looking for tax solutions tailored for expats? Wundertax offers an English-friendly platform to streamline your German tax declarations. Get started
(Affiliate link – we may earn a commission at no extra cost to you.)

Reflective question:
What’s the biggest hurdle you face settling into the German system—language, paperwork, or understanding the rules?

3. Common Mistake to Avoid

Don’t assume a lack of linguistic fluency exempts you from tax rules. Even if a form or process is unclear, you’re still responsible! Reach out for help before a missed deadline evolves into a problem.

CTAs: Products & Services to Empower Expats

Concrete help when you need it:

• Find a Business Bank Account for Freelancers

Setting up the right business bank account is crucial for smooth VAT reporting. Many expat-friendly digital banks support seamless transactions—including in English.

Need English-friendly business banking? Check out Qonto Business—fast setup and full features for international freelancers in Germany. Learn more
(Affiliate link – we may earn a commission at no extra cost to you.)

Live in Germany’s Expertise: Your Trusted Expat Resource

At liveingermany.de, our guides are crafted by expats who’ve faced—and overcome—the same challenges you’re navigating now. We believe the key to thriving in Germany isn’t secret knowledge, but practical support, honest answers, and shared experience.

• We provide free checklists, in-depth guides, and a vibrant community where you can get advice any time.
• Our resources aren’t generic—they’re built in collaboration with experienced internationals, and regularly updated to reflect the latest rules and real expat insights.
• Trusted by thousands of expats, our content is cited and referenced by newcomers, seasoned professionals, and German service providers alike.

Whether you’re registering your business, opening a bank account, or simply looking for the right insurance, you’ll find a helping hand in our articles and forums.

FAQ: Charging VAT as a Freelancer in Germany

What is “how-to-charge-vat-as-a-freelancer-in-germany”?

It refers to the process by which freelancers—German or expat—register for, calculate, and properly handle VAT (Umsatzsteuer) obligations for their business activities in Germany. This process ensures all tax regulations are followed, invoices are compliant, and VAT is correctly collected and paid to the Finanzamt. See myGermanExpert’s guide for details.

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

• Register your freelance activity at the Finanzamt with the tax questionnaire (Fragebogen zur steuerlichen Erfassung).
• Decide if you qualify for the Kleinunternehmerregelung to avoid VAT, or prepare to charge VAT at 19%/7%.
• Receive your Steuernummer and, if applicable, your VAT number (Umsatzsteuer-ID).
• Start issuing VAT-compliant invoices and use ELSTER for tax submissions.
• For step-by-step assistance, platforms like Wundertax can help, especially if you prefer English.

Is charging VAT as a freelancer available for expats?

Yes—there are no nationality-based restrictions. Both German citizens and expats must follow the same legal steps to charge VAT in Germany. Language can be a barrier, but there’s plenty of support (in English and other languages) to help expats comply.

References & Sources

• How to Charge VAT as a Freelancer in Germany – liveingermany.de
• myGermanExpert – Freelancing in Germany
• Germany-Visa.org – Taxes for Freelancers
• Norman.Finance – Umsatzsteuer
• ELSTER Tax Portal
• Affiliate recommendations based on the needs of expats: Wundertax, Qonto Business

Explore all you need to know about how-to-charge-vat-as-a-freelancer-in-germany in Germany – simplified for newcomers and expats.

Data verified as of 2025. For up-to-date regulatory changes, always check with the German tax authorities or an accredited tax advisor. Affiliate links support our mission at no cost to you.