Differences between commercial and freelance work

Traders and freelancer each generate income from self-employed work. In many cases, freelancers are faced with the problem that their activity is viewed by the tax authorities as commercial. Then it is important to find out what the person in question is doing in each individual case. Conversely, some tradespeople would like to be freelancers and fight for recognition. The demarcation can best be understood from the perspective of freelance work.

The law defines freelance work

• § 18 I No. 1 EStG states that a freelance activity is carried out independently scientific, artistic, literary, teaching or educational activity is. The law itself lists relevant professions as examples. Freelancers include doctors, lawyers, engineers, architects, auditors, naturopaths, dentists, interpreters and similar professions.
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• The direct, personal and individual work performance of the freelancer is characteristic. It regularly requires special training and leads to high-quality, particularly qualified work being carried out.

Every other entrepreneurial engagement is commercial

• In contrast to this, a purely commercial activity is to be assumed if the activity is a participation in the general economic Traffic represents and are carried out without basic training and without creative, artistic, advisory or research activity can.
• The case law repeatedly decides on borderline cases. For example, the activity of an advertising consultant was not qualified as commercial, but as freelance if the artistic character of the activity predominated.


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• A doctoral advisor who created talent analyzes using self-developed test procedures and based on the results when creating a Dissertation topic was helpful, however, was classified as commercial, as his work was not assessed as a scientific activity became.

The tax makes the difference

• In practice, the difference has a primarily tax effect. The freelancer does not need to pay any trade tax, but the trader does.
• Freelancers are regularly insured under independent pension schemes (e.g. B. Pension funds for lawyers and doctors). Freelance artists (including authors, publicists) have to take out health and pension insurance (on very favorable terms, by the way!) With the artists' social insurance fund.
• The demarcation and insistence on difference has historical reasons. In addition, freelancers such as doctors or lawyers are subject to professional standards, are subject to liability insurance and are obliged to maintain confidentiality.

In the event of a dispute, the taxpayer is obliged to present and prove the requirements for the existence of a free occupation. If he does not succeed, the tax authorities regularly assume a commercial activity.