Self-employment

Freelancers - Monthly or Quarterly Taxes?

For many freelancers, registering for VAT is not only unavoidable but a somewhat good thing to be happening for a business - it means lots of activity! If you're here and just getting started, well, you will need to wait two years anyway. The Finanzamt require you to declare your income every month in your first two years of business. This also means you have to pay it every month as well. For those of you who are past this point, maybe it already makes sense to do an analysis and see - should I be paying monthly or quarterly? So, let's delve into this question.

Insurance Assurance - a freelancers guide to the red tape!

Oh, freelancers - you thought tax was intense to manage as a self-employed person! Well, what do you know about insurances in Germany? How many are there? What is what for and what do you have to pay? This, beyond tax, is one of the most confusing issues. Most people assume they just have to pay health insurance and that's the end of the story.

Freelancers - Do you need a tax advisor?

Part-Time Self-Employment - Is It Time to Be Your Own Boss?

If you’re toying with the idea of being your own boss, but potential financial risks are putting you off, maybe you should consider part-time self-employment. This is a great way to test the waters and build your business without the angst that accompanies full-time self-employment.

VAT for Freelancers - Basics You Need To Know

Like most developed nations, Germany has a ‘tax’ added onto goods and services. In Australia, it is the GST and in the U.S they have the ‘sales tax’. VAT is essentially the same concept within Europe - a consumption tax, with varying rates depending on what country you’re in. Germany was, in fact, the first country, alongside France, to introduce VAT in World War I as a consumption tax. The VAT system is intricate, complex and paperwork heavy at times. However, for most freelancers, it can become an easy-to-manage part of business and administration life. It all depends how the laws applying to you, and what obligations they create. Overall, VAT in Germany is a fair system - no one expects you to pay what you shouldn’t have to, but you are expected to pay what you owe. So, let us now delve in and get to know the VAT system.

Invoice Basics for Freelancers

Yay! You’ve got clients on the books, you’re working at your chosen profession, you’ve networked, you’ve interview and now you’re ready to earn money in exchange for your services. Huh, you’re a freelancer!? Like all matters of finance and tax in Germany there are strict parameters in which legal documents for the exchange of funds from one party to another and like all matters of finance and tax, adherence to these rules and regulations is absolute. For most expat freelancers, invoicing is a common part of the job, but there are nuances in formulating a German invoice. Many freelancers will tell you using a template is not enough if you want to be able to work on and create your own invoices. This is because you need a full understanding of each element. Not only to create invoices but to understand the invoices you receive as well.