Lecturing in addition to other freelance work.
July 28, 2012 | 25,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
The following situation:
I work as a freelance naturopath alongside my dependent employment. In addition, I am occasionally booked as a specialist lecturer for lectures. Until now, there hasn't been an issue because both of my part-time activities together were under 17,000 euros. However, this may change this year as I have taken on a freelance lecturer position at a vocational school.
The services I provide as a naturopath are exempt from VAT.
At an entrepreneur seminar, I was once told that if I separate the activity as a lecturer from that as a naturopath in terms of accounting, I could invoice the VAT-exempt services normally and also invoice the lecturer activity up to 17,000 euros VAT-free. So, I have issued the invoices accordingly: Naturopath with the statement "VAT-exempt services according to § 4, No. 14 UStG" and the invoices for the lecturer activity with "VAT-exempt services according to § 19 UStG".
As I mentioned, the additional activity for the vocational school is now added. The managing director requests an invoice with VAT at 0% (there is a VAT exemption, and a copy will be provided to me).
How should I proceed with this? Do I need a separate accounting for this as well? Or should I run both lecturer activities through one accounting? And if I exceed the 17,800 euros, should I apply VAT to both activities? Can I even show the VAT at 0%, or is it better to also include a statement like "VAT-exempt services according to § XYZ" on the invoice?
I would greatly appreciate your feedback on this matter.
Kind regards,
Dear inquirer,
First of all, thank you for your inquiry, which I am happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
You must distinguish between sales that are tax-exempt according to § 4 UStG and sales for which VAT is not levied according to § 19 UStG. The latter sales are indeed subject to tax, but VAT is simply not levied due to the exception provision of the "small business status."
Tax-exempt sales are exempt from tax due to the nature of the activity.
In general, services provided by doctors and therapists are exempt from VAT according to § 4 No. 14 UStG (Value Added Tax Act). However, services that do not primarily serve the diagnosis or treatment of diseases or health-related disorders are excluded. This includes services such as cosmetic surgery.
In the case of teaching at a private school, which is exempt from VAT based on § 4 No. 21 UStG, the independent teachers of this educational institution are also automatically exempt from VAT, provided that the relevant certificate from the school is attached to the respective tax return as proof.
These sales are therefore VAT exempt. The remaining turnover that does not meet these requirements is generally subject to taxation.
However, if the total turnover is below €17,500 according to § 19 paragraph 3 UStG, the VAT is not levied. Tax-exempt sales according to § 4 No. 11-28 UStG are not taken into account in determining the total turnover.
Therefore, your sales, unless they are already tax-exempt, are not subject to VAT. The activities (naturopath / lecturer) should be recorded in separate accounting circles, as they do not represent a single activity. However, the assessment of individual services for VAT purposes is not relevant for this.
I hope that these explanations have provided you with a sufficient overview of the situation within the scope of your inquiry and this initial consultation.
Best regards,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
