Value added tax for freelance emergency doctors and freelance consultants for start-ups.
July 16, 2016 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
Dear Sir or Madam,
The following situation:
Starting next month, I will be working freelance as an emergency doctor on the side. The fee for this service is, as far as I know, exempt from VAT. At the same time, I will also be receiving a consulting fee from my start-up (major shareholder, GmbH) every month.
Will everything be calculated together at the end of the year? In that case, I would have to pay VAT, as I will exceed the €17,500/year limit. Or will the non-VAT taxable income (from the emergency doctor work) be treated separately? Because with just the consulting fee from the GmbH, I would not exceed €17,500/year.
Can you help me with this?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into consideration your input and the rules of this platform.
Please note that my response is based on the information presented, and that adding, omitting, changing details, or ambiguity in the information can alter the tax result. Please be aware that this response cannot replace individual and comprehensive consultation.
Your freelance work as an emergency physician is exempt from sales tax according to § 4 No. 14 a of the Value Added Tax Act (UStG), while your consulting fee is subject to sales tax according to § 1 Para. 1 No. 1 UStG.
If you wish to take advantage of the small business regulation according to § 19 Para. 1 UStG, the turnover from your consulting activity must not exceed the threshold of 17,500.00 EUR. If you started your consulting activity during the current year, the turnover from consulting must be converted into an annual turnover (§ 19 Para. 3 Sentence 3 UStG).
The turnover from your work as an emergency physician is not taken into account when determining the threshold of 17,500.00 EUR (§ 19 Para. 3 No. 1 UStG).
Kind regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Ringstraße 98
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de
