As a freelance student, declare taxes correctly

Prerequisite for freelance work

Usually a university degree or a comparable one is required education required for a freelance work.

• A student may not be able to work in all but many of the professions classified as freelance. The artistic and creative area in particular offers many possibilities. Otherwise, training is required in the so-called catalog professions.
• An activity in the artistic-creative segment, however, requires an examination of the compulsory insurance by the artists' social insurance fund.
• To find out whether the activity is commercial or freelance, you should contact the person responsible Tax office submit a job description.
• With this job description, the tax registration at the tax office also takes place.


Freelance work - this is how you tax your income

As a freelance worker, you have to submit an annual report to the tax office ...

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• The advantage of a freelance work is clearly the tax obligations.
• Student or not, as a freelancer Income tax to be paid. Since freelancers usually write fees, so will value added tax due.

A student also has to pay taxes

• In principle, every German citizen is subject to unlimited tax liability. Anyone who is self-employed, whether in the form of a trade or as a freelancer, must submit an income tax return. Whether or not there is a tax liability then depends on the amount of taxable income. The taxable income is simply formulated as income minus expenses and deductible special expenses.
• The tax-free basic allowance is set at 8,004 euros per year for single people and 16,016 euros for married people.
• If the income exceeds € 17,500, the EÜR annex must be completed in addition to the income tax return.
• In contrast to a commercial enterprise, freelance work does not require a balance sheet or profit and loss account to be presented.
• It is sufficient to create a simple income excess calculation. However, it is mandatory to submit a VAT return. Depending on the sales volume, this can be done monthly, quarterly or annually.

VAT return is mandatory for freelance students 

• In the VAT return, the net income is listed and the VAT invoiced next to it. The income side will be the coststhat arise in connection with the activity, along with input tax, VAT on paid bills, opposed. The difference is then to be paid as sales tax. If the VAT paid exceeds the invoice, a refund will be made.
• It is also useful to apply for a VAT ID. On the one hand, it enables cross-border activities, on the other hand, domestic clients are now insisting on it.
• A freelance student can apply for exemption from sales tax when they start working. The prerequisite is that he does not exceed the income limit of € 17,500. This option should be carefully considered. As already mentioned, those who have high expenses can offset these against VAT and, in the best case, receive a VAT refund.
• If a young professional, in this case a student, opts for VAT exemption, this must be shown on the invoices.