Freelancer with residence outside the EU.
July 25, 2019 | 30,00 EUR | answered by Steuerberater Bernd Thomas
Hello, I am a German citizen but currently living in South Africa. I have received an offer to work from home in Germany while being based in South Africa and sending invoices to the company employing me. I still have a bank account in Germany, but I deregistered years ago as my primary residence is in South Africa.
What tax implications do I need to consider if I work in Germany as a freelancer and send invoices that are paid in Euros to my German bank account? Is there a maximum income limit, and where do I need to pay taxes on the income? Can I use my German bank account for receiving my salary? Thank you and greetings.
Dear inquirer,
I am happy to answer your inquiry based on the information provided in a preliminary consultation on frag-einen.com. The response is based on the facts you have provided. Missing or incorrect information can affect the legal outcome.
As long as you are self-employed and do not have a permanent establishment or similar in Germany, the right to tax lies in South Africa according to the double taxation agreement.
In cases of doubt regarding the distinction between self-employment and employment, you can apply for a status determination procedure with the German Pension Insurance.
If your service recipient is a business owner, the VAT must be paid by them in Germany according to the reverse charge procedure. You invoice without VAT with the note "Reverse-Charge".
Best regards,
Bernd Thomas
Tax consultant
Dipl.-Kaufmann (FH) Bernd Thomas, Tax Consultant, Neustadtswall 85, 28199 Bremen, bernd.thomas@yahoo.de, VAT ID No. DE316948369, Member of the Hanseatic Chamber of Tax Consultants Bremen, Registration No. 111705, Professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, Insurance sum: 250,000 euros for each individual claim; annual maximum benefit: 1,000,000 euros (for all damages in an insurance year), the professional regulations of the StBerG apply. https://www.gesetze-im-internet.de/stberg/
