Tax advice simply explained: 7 areas

The tasks of the tax advisor differ depending on which tasks you take on yourself. The main tasks of the tax advisor are bookkeeping, financial accounting, accounting of wages and salaries, the annual financial statements and of course the general advice on the subject of taxes and tax optimization.

If you are interested in the processes, the individual areas of responsibility, then you are in the right place. Learn about the risks of hiring a tax advisor, as well as 3 tips to find a good, really good tax advisor. After that, we will give you deep insights into the daily cooperation with your tax advisor.

7 typical tasks of tax consultants in companies:

1. Advice on tax preparation and structuring
2. Bookkeeping and financial accounting
3. Payroll accounting and payroll
4. Profit and Loss Account (EÜR)
5. Tax returns (much more on this later)
6. Audits of tax assessments
7. Representation vis-à-vis tax office and court

Source: Lukinski.de, tax consultant for companies

Why is it so important to find a good, reputable tax accountant?

Every euro that is not spent on taxes can be reinvested and generates further returns (profits)

That means if you pay too much tax, your money is gone. You can’t use it for new ideas and projects, which in turn bring you more profits and wealth. That’s why a good tax advisor is so important for your wealth creation.

Tasks of the tax consultant: tax returns, wages & Co.

According to Lukinski, the 4 central tasks consist of these areas in simplified form:

1. Tax returns (monthly filings and annual evaluations)
2. Wages for employees
3. Balance sheets (annual financial statements)
4. Tax structuring (set-up and optimisation)

Consulting: foundation, day-to-day business and development

The most important, especially for founders, is the tax advice and design. Taxes are not only a topic for large companies and corporations. It already starts with the managing director’s salary and tax allowances. In the growth process there are also changes in the legal form of the company (list external). If you look at a possible process, this could include, for example, the following stages that you go through step by step as a self-employed person.

Evolution a company (exemplary):

• Sole proprietorship
• Entrepreneurial company (UG haftungsbeschränkt)
• Limited liability company (GmbH)
• Stock corporation (AG)
• Holding (with subsidiaries)

Tax advice therefore begins even before the company is founded. It continues with simple, initial aspects such as your managing director’s salary and goes on to the change of the individual legal forms of companies.

Processing of tax matters

Consultations on tax structuring, concept creation for tax avoidance, that is of course not the daily routine in the cooperation. The daily cooperation with your tax advisor is mainly about the processing of tax matters, from payroll accounting, bookkeeping and preparation of tax returns, to special requests. A list of key points is worth a thousand words, so here is a summary of what the “day-to-day work” is about, the tasks of the tax advisor.

Tax consultant tasks in detail:

• Bookkeeping; this includes setting up bookkeeping, creating a chart of accounts, bookkeeping itself, account assignment of documents).
• Payroll accounting
• Tax returns; this includes wage tax, capital gains tax and turnover tax advance returns
• Preparation of tax returns; these include income, corporate, trade, sales, gift and inheritance tax returns.
• Preparation of financial statements; this includes the income statement (EÜR), opening balance sheet, annual financial statements, interim financial statements, liquidation balance sheet and explanatory reports
• … and special requests

For the sake of completeness, tax advisors naturally help not only in setting up or setting up the business, but also in winding it up, i.e. insolvency, should something go wrong.

Do I need to hire a tax advisor?

As a company and self-employed person, you are not obliged to hire a tax advisor.

However, if you do not have a sound education yourself or the risks are too great, for example because you are not a small business (with “only” 5,000, 7,000 or 10,000 turnover per year), then you should definitely rely on the support of a tax consultant. The higher the turnover, the greater the risk of making mistakes. After all, in your company you are not only responsible for yourself personally, but also for your employees. They rely on you, as well as on regular salary payments.

The perfect segue to your duties!

Even if you have hired a tax advisor, it is worthwhile to take over certain tasks yourself. Depending on how many tasks you take over in your company yourself (or through employees), you save costs with the tax advisor.

Whose work costs you more per hour: employees or accountants?

Some founders collect all receipts, then give them collected, but unsorted in the office. Already the first mistake, because so happens the assignment, to the individual account movements, by the tax adviser. With 100 receipts quickly a few extra hours, with all the queries.

Your tasks: Work with tax consultants = save money

Every hour that your tax consultant works for you, apart from the regular tasks, costs extra. If you send your documents (incoming invoices and outgoing invoices) unsorted, the tax advisor or an employee has to do virtually everything. Conversely: If you deliver everything sorted, allocated (document = account movement) and assigned, it minimizes the workload extremely.

If you write invoices in which, for example, your tax number is missing, your tax advisor has to point this out, you have to change everything, send it again. If you don’t collect your invoices sorted and chronologically, your tax advisor has to do the job, some receipts are unclear, again queries, time and costs. If you don’t use digital accounting yet, through tax software, receipts still have to be entered by hand. These are all factors that drive up the cost of your accountant.

So, in quick summary, what are your responsibilities when working with an accountant? Because:

Work with the tax consultant = save money

Very basically, there are 4 areas that you should work through cleanly.

Wages, registration, health insurance, etc.

Theoretically, the tax comes first, determined by the monthly accounting. But for us one thing is most important, your employees! Because only through good teamwork, you can achieve good results with your company. Therefore, for us first of all wages, health insurance and other liabilities that provide for a good and effective team.

PS: Good teamwork always means that you are a good motivator for your employees.

Central is the submission of wage data, always on the 15th of the month. In the middle of the month? Yes, exactly, because the payroll data must first be processed, often by external payroll offices, which in turn are commissioned by your tax advisor. This happens especially in smaller tax offices when the necessary personnel resources are not yet available.

This means that halfway through the month you send wages, fixed hours and probable hours to the tax advisor. If you have employees who do not have fixed monthly working hours, you must extrapolate the probable working time. These estimated times will then be offset against the actual working times (of the previous month) in the following month.

Caution, unaware cost trap! Health insurance

Health insurances are not part of the wages and especially company founders often only (!) calculate with the sum for wages and salaries instead of seeing the total costs that arise for employees.

Here’s a small example:

• Salary (transfer): 1.500 €
• Health insurance: 700 €
• Costs for payroll accounting: 15 €
• Central wage costs: € 2,225
• Unconscious costs: + 32,6 %.

The gap between the €1,500 calculated in the mind and the €2,225 actually paid is a whole €725, or +32.6 per cent. Therefore, always remember that the cost of wages and salaries ultimately includes not only the actual payment to the employee, but also the health insurance and payroll costs, which are additional for each individual employee.

This calculation error increases with each individual employee. So, for example, if you hire 5 employees directly at the start of the company through an investment or a loan and do not keep an eye on the costs for health insurance and payroll accounting, you will have a monthly deficit of 3,575 euros in the calculation example. If you have a loan of 50,000 euros or an investment, hire 5 employees, it has consequences quickly. After a period of 6 months, the sudden, supposed loss is already 21,450 euros. Finances are the number 1 reason for the failure of companies.

This is where another statistic comes right into play, 9 out of 10 businesses fail in the first 5 years. The most common reason is lack of funding and capitalization. Supposedly, because maybe it’s just the wrong calculation.

That’s why it’s always important: You have to take an interest in taxes and duties yourself.

Don’t leave the work (only) to your tax advisor!

Let’s recap wages, employees, and health insurance:

• Submission of wage data by the 15th of the month
• Submission of actual and estimated working times (depending on employee type)

Monthly taxes: sales tax, trade tax, etc.

From our long look at employees now to the point at hand, monthly taxes! As a business (except small business) you are obliged to charge VAT if the invoice recipient is in the country (business) and always if the customer is a private person.

The very most important thing for accounting and for accountants:

Each posting (transaction) gets an assignment (document)

Or in other words, for every receipt and withdrawal on your account, there is a receipt that provides proof of what the money was used for.

This monthly evaluation determines the amount of sales tax you have to pay to the tax office.

If your turnover is high enough, the tax office will ask you to pay business tax for the first time. The sales tax is a transitory item. The trade tax reduces your profit, the sales tax does not. Read more about the types of taxes in Germany here.

Once again summarized the most important tasks for you, in the preparation of accounting:

• Each posting a document
• Accounting almost 1 month together
• Submission no later than the 10th of the following month (tax office, previously to tax advisor)

Annual taxes: annual accounts

At the end of the year, depending on the legal form and company structure, financial statements are sent to the tax office.

If you do not file your tax return yourself, the annual accounts will be prepared in full by your tax adviser.

Your annual accounts provide information about the financial situation of your company. The annual financial statement is mandatory for all types of companies and is also sent to the Federal Gazette. In this way, company balance sheets can be viewed by the public. This facilitates credit checks for other companies and gives the tax office an insight into the current situation.

At the end of the year, there are various declarations that need to be filed, depending on the legal form(s) and company construct. For the self-employed, this includes the income tax return or, in general, the VAT return. As I said, all these aspects are taken care of by your tax advisor.

The annual accounts must be submitted by 31 July at the latest. Unless you are assisted by a tax advisor, then the submission can be extended to 28/29 February of the following year.

Now before we get to the 3 tips to find a good tax accountant, first the risks and dangers of hiring the wrong tax accountant.

Compare tax accountants: Risk when hiring

You want to find a good accountant! Because you want to avoid risks and dangers, after all, it will cost you money if you hire the wrong firm for your accounting. Ultimately, also a reason why startups fail. Cost of additional processing, advice and service and of course losses, for example if tax benefits are not taken (quote above). In the article on Lukinski, 3 specific risk factors are described that usually only become apparent after years of working together. The 3 risks first at a glance.

Assign risks to the tax advisor:

1. Intensive, regular cooperation; means commitment and time for tax consultant changes
2. Amount of monthly and additional costs; money missing for reinvestment
3. In the long term: lose money (pay too much tax, plus costs for tax advisor, lack of reinvestment) due to lack of qualitative / quantitative advice

Learn even more about 3 big risks in contracting here:

• Hiring a tax advisor: 3 mistakes

Find a tax advisor: 3 tips

In order to find a good tax advisor, there are in the article on Lukinski directly 3 practical tips with to the hand, for your search, for a good tax advisor in the proximity.

These 3 tips will help you find a tax accountant:

1. Don’t click on the ad in the search results (go directly to page 2)
2. Rating on online portals (more than 5 opinions)
3. Experiences and recommendations from successful entrepreneurs

Avoid advertisements in search results and portals

For one, never click on the ads, because these search results do not come from quality. The ads are here solely because money is paid for it. Money that is spent on advertising, of course, must be taken again. Already the costs for the tax adviser rise, because marketing is expensive. Maybe it is also not the best tax office, after all, customers still need to be recruited. Word of mouth is not enough to acquire new customers through recommendations, that is, through satisfied customers.

Ratings with quality and quantity

Tip number 2 deals with the evaluation in online portals. Here you should pay particular attention to the fact that there are a relatively large number of opinions. Buy reviews is quite simple. For as little as $19, there are real reviews in search engines and on social networks. Therefore, you should on the one hand compare the number of reviews with other offices, on the other hand read the opinions or even read through. A simple “very good” could possibly be bought.

Tax consultant experiences of other successful entrepreneurs

Tip number 3 is the safest way, you ask experienced and successful entrepreneurs in your area who can give you good recommendations. Another advantage, you have a door opener to the firm. Because good tax accountants don’t wait for new clients, they have enough inquiries through referrals.

Here again, briefly summarized, the 3 tips from practice to find a good tax advisor:

1. Don’t click on the ad in the search results (go directly to page 2)
2. Rating on online portals (more than 5 opinions)
3. Experiences and recommendations from successful entrepreneurs

Conclusion: Find and hire a tax consultant

That was our insight into the topic of finding and hiring a tax advisor. So remember, don’t leave the work (only) to your tax accountant! The more you understand and do, the less you pay for the tax advisor and the more money or profit you have left to reinvest.

You’ve learned a lot about working together, from monthly bookkeeping and wages, to your company’s financial statements. Also the 3 biggest risks and 3 tips so that you do not make mistakes when choosing a tax advisor.

You can find more on this topic in the source of the article on Luinski.de: Steuerberater.

Costs and billing

How much does a tax consultant cost per hour? How are the fees of the tax advisor calculated? How much should a tax accountant cost? And how much does a small business tax accountant cost? If you haven’t experienced tax accountants yet, here are official costs and rates for you, from the federal Chamber of Tax Advisors. Tip. Under the explanation of value fee you will find the cost table for 100.000, 200.000 and 500.000 Euro – that’s how much your tax advisor costs / earns!

• Tax consultant costs

Mistakes: 3 risks for your company

Hiring a tax accountant / mistakes – You want to find a good tax accountant! Because, you want to avoid risks and dangers, after all it will cost you cash if you hire the wrong firm for your accounting. Costs for additional processing, advice and service and of course losses, for example, if tax benefits are not taken (quote above). In the article on Lukinski, 3 specific risk factors are described that usually only become apparent after years of working together. The 3 risks first at a glance.

• Hiring a tax advisor: mistakes

Tax consultant in the vicinity

Nearby Tax Accountants – Find a good tax accountant near you? We have searched the internet for you for days to find the best recommendations for tax consultants in your area: Hamburg, Berlin, Cologne, Dusseldorf, Munich, Stuttgart & Co. for your private tax return or income tax return or more complex accounting for companies, from monthly financial accounting to annual financial statements. Including adresses, telephone numbers and website.

• Tax consultant in the vicinity

German taxes at a glance: Declaration and more

The German bureaucracy confronts many people with several questions, and the topic of taxes is no exception. We would like to bring you closer to the world of German taxes and introduce you to the common forms of taxation in Germany. Taxes are often an annoying matter, both as a private person and as a company, but if you can clear up and understand the confusion, you should no longer have a problem with taxes. But not for nothing there is the tax advisor in case of need, who can help, but may be very expensive. We owe our know-how to the experts at Lukinski, among others.

Source: Lukinski – Taxes in Germany

Income tax (ESt): tax for natural persons

Income tax – ESt for short – is usually levied on the income of natural persons, according to their ability to pay. The income is understood as the sum of all earned income within the meaning of the Income Tax Act (EStG) minus the sum of all deductions relevant under tax law (such as any allowances). Taxable individuals are divided into self-employed persons, who generally have to pay their income tax themselves, and employees, whose income tax is withheld by their employer in the form of wage tax and paid to the tax office on their behalf.

As a joint tax, this tax revenue is divided between the federal, state and local governments. The municipalities receive the rate applicable under federal law – currently 15 percent of wage tax and assessed income tax – while the remainder goes to the federal government and the states in equal shares. As a rule, all natural persons are liable to income tax and must pay tax on their income from self-employed and non-self-employed activities.

How much is the income tax?

Income tax cannot be calculated as a lump sum. Depending on how high the individual annual income is, a different percentage of income tax is due. From an annual income of approx. € 9,400, the initial tax rate is “only” 14%. The top tax rate is around 42% from an annual income of around €57,000 (as of 2020) – but only for single people.

For people who are married, however, the rules are different. For married people, for example, the initial tax rate is 14% with a taxable income of up to approx. 18,800€.

Between 14 and 42 %, depending on income level

Payroll Tax (LSt):

Since wage tax is not a separate type of tax, but only a special form of levying income tax (§ 38 EStG) on income from employment, the Income Tax Act (EStG) is the legal basis for wage tax.

The taxable income forms the assessment basis for income tax. The tax liability is determined by the income tax scale (§ 32a EStG). This tariff assigns a tax amount to each level of taxable income. Thus, the tax scale is the core of the Income Tax Act.

To facilitate the deduction of income tax, 6 income tax classes have been created in which the different rates are incorporated. Wage tax is paid by your employer and deducted from your wages every month.

Trade tax (GewSt): For commercial enterprises

As a rule, trade tax is levied on the income of every German commercial enterprise and is thus based on the objective earning power of the respective company. Since limited liability companies, stock corporations and the like are always regarded as commercial enterprises by virtue of their legal form, trade tax is mandatory for corporations – regardless of the composition of the founding team.

As an object or property tax, trade tax is by its nature one of the real taxes. Effectively, it belongs to the municipal taxes and contributes significantly to their financial system. The municipalities are entitled to levy the tax and determine the tax rate applicable for a given year by resolution.

How much is the trade tax? – Formula & Calculation

The individual trade tax for your company is determined with the help of the tax rate, which is currently 3.5 percent (as of 2020). This means that you have to pay 3.5 percent of your trade income to the tax office. The trade income is made up of your profit minus the legally given tax-free amount (currently €24,500). This trade income multiplied by the statutory measurement figure results in the sum that you have to pay to the tax office as trade tax.

Formula for calculating: Trade income (profit minus tax-free amount) x statutory measurement figure (currently 3.5%)

Important dates: Prepayment

Trade tax is payable quarterly on 15 February, 15 May, 15 August and 15 November in equal instalments as an advance payment. These taxes are no longer deductible as a business expense beginning with the 2008 tax period, but may be credited as a lump sum against income tax payable. Dates for advance payment of business tax:

• February 15
• May 15
• August 15
• November 15

Value added tax (VAT): Tax for delivery & service

Sales tax is usually levied on all sales that a company generates in the domestic market for sales tax purposes. This includes all supplies of goods and services, as well as occasional ancillary transactions, which the company provides for consideration as part of its business activities. VAT amounts that a company has paid for supplies and services it has received and that can be substantiated can be claimed as input tax deductions and thus reduce the company’s VAT burden.

Sales tax = value added tax

From an economic point of view, the own turnover tax thus represents a general consumption tax, but in Germany it ultimately functions as a transfer tax and is ultimately charged to the end consumer. Because it is passed on, sales tax is typically classified as an indirect tax. Currently, the standard German VAT rate is 19 percent – 7 percent on reduced goods – and is one of the main sources of revenue for financing the federal budget.

Important dates: Prepayment

• On the 10th of the following month (submission to the tax office)

How much is the sales tax?

The value added tax in Germany is a community tax. The standard tax rate in Germany is currently (as of 2021) 19 percent. For certain transactions, however, there is also a tax exemption or a reduced tax rate of currently 7 percent.

Value added tax Germany (normal tax rate): 19%.

Real estate transfer tax (GrESt): Purchase of property or land

Whenever a property or share of a property is purchased, land transfer tax is incurred in Germany. The tax is levied on the basis of the Land Transfer Tax Act (GrEStG). The amount of the land transfer tax is determined by the federal states. It is therefore a state tax. The respective federal state can therefore decide for itself whether to pass on the tax levied to its municipalities.

After you have bought your property, the purchase still has to be notarised. The purchase contract states who has to pay the real estate transfer tax: Buyer or Seller. Without this additional agreement, it is the case that according to the law (§13 No. 2 GrEStG), the previous owner and the purchaser are initially liable for the tax, i.e. both together, buyer and seller.

After notarisation, the notary sends the signed purchase contract to the responsible tax office, which then writes to the party to be charged with the real estate transfer tax notice. The tax is due one month after notification of the tax assessment. However, the tax office may set a longer payment deadline if necessary (see Real Estate Transfer Tax Act (GrEStG) §15 Due date of the tax).

How much is the land transfer tax?

The real estate transfer tax is determined by the individual states and is therefore not uniform. Currently (as of 09/2020), the real estate transfer tax is between 3.5 and 6.5 %. In Saxony, for example, the real estate transfer tax is 3.5%, whereas in North Rhine-Westphalia it is 6.5%.

Between 3.5 % and 6.5 %, depending on the federal state

Corporation tax (KSt): For legal entities

Corporate income tax is usually levied on the income or profit of legal entities domiciled in Germany and is thus complementary to income tax (ESt), which is usually levied on individuals. Taxable persons typically include corporations, associations, cooperatives and foundations. A limitation of corporate income tax comes into play, for example, if the management and headquarters of the legal entity are located abroad. Political entities, federal companies, state banks and social security funds, professional associations and some others are fully exempt from the obligation to pay corporate income tax.

As a corporate tax, corporate income tax counts as a community tax and is levied by both the federal government and the states. The amount of the levy is based on the taxable income, which is the result of the profit less special expenses and extraordinary burdens, and is currently 15 percent plus the solidarity surcharge (SolZ), resulting in an overall burden of 15.825 percent. Corporate income tax is payable quarterly on March 10, June 10, September 10 and December 10 in equal instalments as an advance payment and is offset against the actual tax liability at the end of each financial year.

Important dates: Prepayment

Dates for advance payment of corporate income tax:

• March 10
• June 10
• September 10
• December 10

How much is the corporate income tax?

Corporate income tax is a business tax for legal entities and is currently 15%, in some cases plus a solidarity surcharge, resulting in a total of 15.825%.

Corporate income tax: 15

Capital gains tax (KapESt): Tax on profit distribution

Tax law provides that (in addition to the income tax of any natural person with shareholder status) capital gains tax is levied on all natural persons resident in Germany who benefit from a distribution of profits. As a result, the recipient – but not the corporation – is burdened. The capital gains tax burdens both the profit income of shareholders of a GmbH and the distribution of dividends to shareholders of a stock corporation.

For the sake of simplicity, 25 percent of the dividend is withheld directly by the AG for share holders, similar to the way regular employers withhold wage tax (LSt) for their taxable employees. Capital gains tax – abbreviated to KESt, KapESt, KapErtSt or KapSt – is a special form of income tax levied here: Once the tax burden has been withheld, the income tax is deemed to have been paid and the income does not have to be declared in more detail – at least insofar as no other type of income applies or the special tax rate applies.

If, on the other hand, the registered office of a shareholder is abroad, the so-called withholding tax comes into effect and the provisions of the double taxation agreement (DTA) of the respective country must be taken into account. The final withholding tax is also levied on shares held as private assets within Germany.

How much is the capital gains tax?

The capital gains tax is also known as the final withholding tax and is levied on generated investment income. Since 2009, this has been levied at a uniform tax rate of 25%. If applicable, church tax is also levied.

Capital gains tax: 25

Source: Lukinski – Taxes in Germany

Tax basics: taxes explained, tips & tricks

Why does the state just reach into our pockets like that? What is the tax revenue used for? And what do we get out of it? You will also learn the difference between direct and indirect taxes and what the terms “tax debtor” and “taxpayer” mean.

Looking for book recommendations on taxes? Then check out these book recommendations:

• Book Recommendations: Tax Tips & Tax Tricks

Here’s another tip for you! Online you can find a lot of articles and tips on Lukinski.de. Here you can learn everything: from tax basics for asset accumulation, to real estate as a capital investment through renting, to saving taxes with real estate (external). Everything free of charge from the expert.

Tip! Overview Taxes XXL

Taxes are often a vexing topic, especially in Germany. Wage tax, value added tax, real estate transfer tax and much more: it is not easy to keep track of everything. But if you’re not interested in employing a tax consultant, who can be quite expensive, you need to get to grips with the subject of taxes. We want to help you with that! Here you will find an overview of guides as well as book and video tips on the subject of taxes. Whether we introduce you to individual types of German taxes or you watch a video on the subject of tax returns, all your questions about German taxes will be answered here.

• Book & Video Tips Overview: Taxes

Find a tax consultant

Are you still looking for the right tax advisor in your area? Then take a look at our lists: We have compiled the best-rated tax consultants for you for almost every city in Germany, where you should always receive good advice. You can find more information about tax advisors in your area here.

Tax types: income tax, purchase tax, gift tax & Co.

Income tax taxes salary, wages, rent, interest and profits from self-employment of natural persons. Corporate income tax taxes the income of corporations. Trade tax is borne by commercial enterprises and is due to the municipalities. The trade income is the relevant parameter for determining the tax burden. Inheritance tax taxes the transfer of assets of a deceased person to the heir. Gift tax is assessed according to the same standards and prevents the avoidance of inheritance tax. Property tax is levied on real property, which includes residential and business property. The basis for taxation is the assessed value of the real property. Sales tax is levied on the purchase of goods and services. The tax revenue is due to the municipalities, states and the federal government. The real estate transfer tax is levied on the purchase of real estate. Only upon payment of the real estate transfer tax does the purchaser become the owner by means of an entry in the land register.

Basics & special features

In this video you will learn what income tax is, how it is calculated and what it has to do with tax returns.

https://www.youtube.com/watch?v=Apw9LL8gH4g

Income Tax: Basics & Tax Return

Income tax is one of the most important taxes in Germany. It is levied on various types of income: For example, on wages and other income resulting from rental income, capital assets or self-employment. All this income must be listed in the tax return at the end of the year. The tax office offsets all allowances and income-related expenses against the income tax to be levied on the income. The difference between the income tax and the tax allowances (or all deductible costs) is the amount that the taxpayer pays to the tax office or receives back from the tax office.

Making the income tax return

In this video, you’ll learn what income tax is, how it’s calculated, and what it has to do with filing taxes.

Wage & Salary Accounting

What deductions can I see on my pay stub, what is the money used for? Employee, employer, payroll tax, social security taxes, how should these parts be classified? You can find the answer in this video.

Sales tax & input tax

This video explains and illustrates the handling of sales tax and input tax in accounting. For this purpose, the term sales tax is first briefly explained. Then, the posting of sales tax and input tax is explained using two sample tasks. Finally, it is shown how the tax payable can be determined.

Calculate sales tax & input tax

Have input tax refunded

In the following video you will learn what options you have to have your input tax refunded.

Tax basics: What? Who? When? Why?

Taxation: What are taxes? Who is liable to pay taxes? What is taxable? Assessment, rates, administrative acts and much more, you will learn here with exercises.

Related links about the topic Taxes

Would you like to know more about taxes? What does a tax advisor do and how can you easily deduct taxes? Here you can find more videos on all important tax topics!

Taxes Real Estate & Home Ownership

Taxes on real estate/home ownership – what tips and tricks are there to consider? Our videos show you how you can best save on the taxes that apply to real estate and how you can best reconcile real estate transfer tax and income tax.

• Video List: Taxes Real Estate & Home Ownership
• Book Recommendations: Taxes Real Estate & Home Ownership

Taxes & Investment Income

Capital gains – Some people may have heard the term before. However, there may also be people who can not yet do so much with the term. What that is exactly and what that has to do with taxes, you will learn here. Capital gains tax, tax return, dividends and interest in relation to taxes are also adressed. Also you get tips for the tax return and for more net income.

• Video List: Taxes & Capital Gains
• Book Recommendations: Taxes & Capital Gains

Understand, calculate & tax pension

Sooner or later, everyone has to deal with their pension. How the pension system works, when and where you can get the best information, which mistakes to avoid and what tips there are to increase the pension, we will give you here. We also give you insights into investment options and the Riester pension.

• Video List: Understanding, calculating & paying tax on pensions
• Book Recommendations: Understand, Calculate & Tax Pensions

Back to overview Taxes XXL: Tax return, tips & more

Here you can return to the overview of book and video recommendations on the subject of taxes in Germany. Tax forms, tax rates, tax returns and much more will be explained to you by experts and made understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of taxes.

• Book & Video Tips Overview: Taxes

Tax advisor near you for private + company

Finding a good tax accountant near you? We have searched the internet for days to find the best recommendations for tax advisors in your area: Hamburg, Berlin, Cologne, Düsseldorf, Munich, Stuttgart & Co. for your private tax return or income tax return or more complex accounting for companies, from monthly financial accounting to annual financial statements. Including adresses, telephone numbers and website.

• All cities: Tax consultants Germany
• Tax consultant Berlin
• Tax consultant Düsseldorf
• Tax consultant Frankfurt
• Tax consultant Hamburg
• Tax consultant Hanover
• Tax consultant Cologne
• Tax consultant Munich

Did you know? Only 57% do their own tax return! Yet you get an average of 1,027 euros in tax back when you file a tax return.

Tax tips for private individuals: 1,027 euros back in taxes!

Many say that the German tax system is too complicated. But the fact is that the vast majority of taxpayers in Germany do their tax returns themselves, according to OECD statistics. Would you have thought that? Only 43% of Germans use a middleman for their tax return, for example a good and experienced tax advisor in the vicinity. 13.7 million of these taxpayers had their income tax assessed.

Of these, 12 million taxpayers received a tax refund.

The tax refund was on average 1,027 euros

Refunds of between 100 and 1,000 euros were particularly frequent (58 %). In 9 % of the cases, the refund was less than 100 euros. The tax offices refunded amounts in excess of €5,000 in as many as 2% of cases.

Value fee: Basis of calculation

Before looking at the cost tables, here’s a quick explanation of what the ad valorem fee is all about. Source: Federal Chamber of Tax Advisors.

Most of the fee elements of the StBVV, such as the preparation of the bookkeeping according to § 33 or also the preparation of the annual financial statements according to § 35 Para. 1 No. 1a, are basically based on value fees (§ 10).

The value fee is calculated according to the value of the object of the professional activity – the so-called Gegenstandswert – and is determined according to the fee tables A to E of the StBVV and the applicable rate per tenth. The specific amount of a fee thus results from the value of the subject matter of the tax advisor’s activity, the application of a rate per tenth for this activity and the corresponding fee table of the StBVV.

Value of the activity = tenths of a percent

Examples of ad valorem fees:

1. For the preparation of an income tax return without determining the individual income, the tax advisor receives 1/10 to 6/10 of a full fee according to Table A. The average fee is therefore 3.5/10. The value in dispute is the sum of the positive income, but at least 8,000 Euros (see § 24 Paragraph 1 No. 1 StBVV).
2. The monthly fee for bookkeeping, including the account assignment of vouchers, amounts to 2/10 to 12/10 of a full fee according to Table C. The average fee is 7/10. The amount in dispute is the highest amount resulting from the annual turnover or the sum of the expenses (see Section 33 (1) and (4) StBVV).
3. For the determination of the excess of business income over business expenses, the tax advisor receives 5/10 to 20/10 of a full fee according to Table B. The average fee is 12.5/10. The average fee is 12.5/10. The amount in dispute is the higher of the sum of the business income and the sum of the business expenses, but at least 12,500 euros.
4. For the preparation of annual financial statements (balance sheet and GUV) the fee is 10/10 to 40/10 of a full fee according to Table B. The average fee is 25/10. The average fee is 25/10. The value in dispute is the average between the adjusted balance sheet total and the annual operating performance (§ 35 Para. 1 No. 1 and Para. 2 No. 1 StBVV).

The following is a look at the resulting tax tables.

• Tax law – All cost centers

Tax consultant costs: Examples

Value of the activity? Ten percent rate? Here in the practical example the costs for the tax consultant:

Turnover / income of 100,000 euros

This is how much your tax consultant earns for a turnover of 100,000 euros for balance sheets, EÜR, income tax returns & Co.

Turnover / income of 200,000 euros

This is how much your tax consultant earns for a turnover of 200,000 euros for balance sheets, EÜR, income tax returns & Co.

Turnover / income of 500,000 euros

This is how much your tax consultant earns for a turnover of 500,000 euros for balance sheets, EÜR, income tax returns & Co.

Tax law: § 13 Time fee

The time fee is to be charged:

1. in cases where this Regulation so provides,

2. if there are no sufficient indications for an estimate of the object value; this shall not apply to activities pursuant to section 23 as well as to representation in out-of-court appeal proceedings (section 40), in administrative enforcement proceedings (section 44) and in court and other proceedings (sections 45, 46).

It amounts to 30 to 75 Euro per half hour or part thereof.

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