Ask a tax advisor on the topic of Business start-up

Reporting to the tax office is required for minor freelance activities.

April 12, 2013 | 40,00 EUR | answered by Michael Herrmann

Dear Madam or Sir,

In the last three years, I have published three books and since last year I have also been working in text creation as a freelance artist. I still have a main job to support my family. The freelance work is more of a hobby and in 2010 and 2011 it only resulted in losses, which will only slightly change in 2013. The annual income in 2012 was approximately 250 EUR and this year it will not be significantly more.

Since 2010, I have included a balance sheet with the numbers in my income tax return. Due to the small amount of income, I am also not subject to VAT.

Now my questions: Today I read that I also have to register specifically with the tax office for freelance work and receive a different tax number for that. Is this really necessary, do I still need to do this, and how should I proceed?

The same applies to VAT liability. Do I have to apply for VAT exemption separately or is it automatic? If not, how should I proceed now and what penalties for late submission should I expect?

Are there any other tax-related considerations or registrations I need to make? (I have taken into account the issue of false self-employment.)

Thank you!

Best regards,
F.

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response will be based on the facts presented. Incorrect or missing information about the actual circumstances can affect the legal outcome.

Based on the information you provided, you do not need to take any action at this time. You have already reported income from self-employment in your tax return since 2010. Therefore, the tax office is aware of your income. The issuance of a new tax number is an administrative act that already took place after submitting the tax return for 2010. The tax office assigns special tax numbers to non-employees.
I do not see any indication that you are subject to VAT. You are still considered a small business owner.

I hope that these explanations have provided you with a sufficient overview of the situation within the context of your inquiry and initial consultation.

Sincerely,

Michael Herrmann
Dipl. Financial Economist (FH)
Tax consultant