Fees
Fees depend on the type and scope of the mandate, the complexity of the matter, the available documents and the required level of tax assessment.
Before work begins, the scope of services and the expected fee basis are discussed as clearly as possible.
Fee basis
Fees for German tax advisory services depend on the specifically agreed scope of work. Without a clear delimitation, misunderstandings can arise quickly, especially in relation to tax office queries, assessment reviews, objections or additional advisory requests.
What is instructed?
Before work begins, the relevant tax types, years, tax returns, advisory questions or ongoing tasks are defined.
How much work is required?
Document volume, document quality, prior-year status, tax office correspondence, follow-up questions and special topics affect the actual processing effort.
How is the fee calculated?
Depending on the matter, fixed fees, time-based fees, written fee agreements or billing under the German Tax Advisor Fee Regulation may be considered.
What requires separate instruction?
Additional services such as assessment reviews, objections, statements, suspension-of-enforcement requests or tax office correspondence are included only if expressly agreed.
Possible billing models
Fixed fee
Suitable for clearly defined, recurring or reasonably predictable services, for example certain tax returns or ongoing service packages.
Time-based fee
Appropriate for open, difficult-to-estimate or advice-intensive matters, for example individual questions, tax office correspondence, assessment reviews or objection preparation.
Fee agreement
For many mandates, an explicit written fee agreement is useful to define the scope of services and the billing basis clearly.
StBVV
Unless a different arrangement is agreed, billing may follow the German Tax Advisor Fee Regulation, known as the StBVV.
What affects the fee?
A tax advisory fee cannot usually be determined reliably without an understanding of the specific facts. The work required depends not only on the tax type, but also on the quality and completeness of the documents provided.
Number of tax types and years
A single German income tax return is different from several years involving rental income, self-employment, VAT or objection proceedings.
Quality of preparation
Structured documents reduce queries and processing time. Incomplete, unsorted or inconsistent documents increase the work required.
Special topics and individual questions
Rental income, international matters, photovoltaic systems, business cessation, start-ups, objections or VAT questions can significantly change the scope of work.
Time pressure and short-notice work
Short deadlines, urgent tax office letters or overdue tax returns require a separate assessment of whether proper processing is still possible.
Typical service areas
Services not automatically included
A frequent practical issue in tax advisory mandates is whether later additional work is already covered by the original fee. For this reason, the scope is delimited clearly.
Additional services are not automatically part of the mandate
Assessment reviews, objections, applications for suspension of enforcement, statements, tax authority queries, correction requests, amendment requests or additional advisory questions are included only if expressly agreed.
Fee coordination process
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Describe the matter — You describe the advisory need, affected years, tax types, deadlines and the current document situation.
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Assess the scope — The required services are identified and it is checked whether proper processing appears feasible.
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Agree the fee basis — The fee or billing model is discussed and agreed before work begins.
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Conclude the mandate agreement — Only then does professional work start within the agreed scope.
Transparency instead of false precision
Flat price statements without knowledge of the facts are often inaccurate from a tax and organisational perspective. A seemingly simple tax return can become significantly more complex due to rental income, foreign matters, self-employed side activities, prior-year issues or tax office correspondence.
Assess first, calculate second
Before a reliable fee indication is given, the matter should at least be assessed at a high level. This protects both sides from unrealistic expectations and helps ensure that important services are not overlooked.