Ask a tax advisor on the topic of Tax return

Submission of the VAT pre-registration.

May 28, 2010 | 25,00 EUR | answered by Michael Herrmann

I have been working as a freelancer since 02/2010. I advise a Spanish company in the creative sector. I receive a monthly flat fee of 1500,- and various expense allowances averaging 500,- per month. I invoice these two amounts monthly without VAT. I submit my VAT returns via Elster Online. Do I also have to report my expenses there immediately? When do I need to file my income tax return? Quarterly or annually?

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment within the scope of an initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can influence the legal outcome.

In the VAT return, the turnover and the paid input VAT amounts (VAT from purchase invoices) are stated. Your expenses are not listed here, as they are irrelevant for VAT taxation.

The income tax return and profit determination are prepared annually. For the year 2010, this will be done in 2011. If your tax liability exceeds 400 euros, the tax office will determine quarterly advance payments. No separate declarations are required for this.

If you can already foresee that you will have to pay more than 400 euros in income tax, you should inform the tax office informally in advance about your expected income. This way, you can avoid larger tax payments. The advance payments will of course be credited in the income tax assessment for the calendar year.

I hope that these details have provided you with an initial overview of the situation in the context of your commitment and remain

Yours sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant