Corona has basically destroyed the concept of time and calendars being the static and familiar dial by which our lives were conducted. You know this is true when the German tax year has updated deadlines! Alongside various meaningful changers for self-employed and freelance people, what changes to the calendar could impact you? Get your FiloFax and pencils out, as we are going to review this forthcoming 2021 financial year.
With everything going on lately, you may have missed some interesting tax news about change going into effect in 2021 in regards to taxation. As the business community and government agencies began to realise the extent of the crisis, as well as certainly some high pressure situations for Steuerberaters, the tax calendar was slightly revised and we have all the dates available at the time of writing.
These dates and deadlines primarily relate to your tax returns and, above all, to the due date of certain tax payments. Here at a glance, we have listed the most important taxes for you, which you should note in your tax calendar for 2021 relating to:
- Sales tax and sales tax advance returns
- Advance payments for trade tax
- Payments for income tax and for corporation tax
- Advance registrations for income tax and church tax
- Summary messages
- Tax returns
- Dates of the advance VAT payment & advance VAT return
Every self-employed person has to pay sales tax if he sells services or delivers goods. The content for this is regulated in the Value Added Tax Act. There is only an exception to the payment of sales tax if you are classified as a small business according to § 19 USt. Due to the current Corona crisis, there was a temporary VAT reduction in 2020 from 19% to 16% for normal rates and from 7% to 5% for reduced rates.
Regardless of this, as an entrepreneur, you are obliged to always submit a VAT return based on your income for the year 2021. This must be done either every month or quarterly. The VAT returns you can make the tax office via the portal ELSTER. A bank account like Kontist also pre-separates your tax payable for VAT - if you are into that kind of convenience.
If there are good reasons that you cannot keep the standard deadlines, you have the option of applying for a permanent extension of the deadline. In this case, the tax office can grant you a grace period and grant you an extension of one month.
When it comes to VAT, most likely you are required to send a monthly submission if the total of your tax amount was over EUR 7,500 in the previous tax year. The submission must also be made monthly for you as the founder in your first year of self-employment. This can be quarterly however, if your tax burden in the last calendar year was between EUR 1,000 and EUR 7,500, you only have to make the advance return of VAT once per quarter.
You should register the following tax dates 2021 for the next year with regard to your sales tax:
March: Wednesday, March 10th 2021 and payment by Monday, March 15, 2021
April: Monday, April 12th, 2021 (for both monthly and quarterly registration) and payment by Thursday, April 15, 2021
May: Monday, May 10th, 2021 and payment by Saturday 15th May 2021
June: Thursday, June 10th, 2021 and payment by Tuesday, June 15, 2021
July: Monday, July 12th, 2021 (for both monthly and quarterly registration) and payment by Thursday 15th July 2021
August: Tuesday, August 10th, 2021 and payment by Friday 13th August 2021
September: Friday, September 10th, 2021 and payment by Wednesday, September 15, 2021
October: Monday, October 11th, 2021 (for both monthly and quarterly registration) and payment by Thursday, October 14, 2021
November: Wednesday, November 10th, 2021 and payment by Monday, 15th November 2021
December: Friday, December 10th, 2021 and payment by Wednesday, December 15, 2021