Business income
Recording of business income including VAT received, where relevant for VAT purposes. This may include outgoing invoices, incoming payments and other operating income.
Profit determination & EÜR
Preparation of the income-surplus calculation under section 4(3) EStG for freelancers, self-employed persons and smaller businesses.
The EÜR forms the tax basis for determining business profit, the income tax return and often also VAT and trade tax questions.
What does profit determination include?
In the income-surplus calculation, business income and business expenses are compared. As a rule, the inflow and outflow principle under section 11 EStG applies unless special rules intervene.
Business expenses
Review and allocation of business expenses such as premises costs, travel costs, work equipment, insurance, training, advisory costs and ongoing business costs.
Depreciation and fixed asset register
Fixed assets are usually not deducted in full immediately but depreciated over their useful life. Low-value assets and pool depreciation must be reviewed separately.
EÜR schedule and electronic filing
The profit determination is transferred to the EÜR schedule and filed electronically with the tax authorities where commissioned and required.
Who can use an EÜR?
The EÜR is particularly relevant for taxpayers who are not required to determine profit by balance-sheet comparison. The classification must be checked in advance.
Freelancers
Freelance activities within the meaning of section 18 EStG often determine profit by EÜR unless voluntary balance-sheet accounting is used.
Self-employed persons
Self-employed activities with manageable document volume and no bookkeeping obligation can often be represented by an EÜR.
Commercial sole proprietors
Commercial sole proprietors can use the EÜR as long as there is no bookkeeping obligation under commercial or tax law.
GmbH and UG
For GmbH and UG, an EÜR is generally not available. These entities are subject to bookkeeping and balance-sheet obligations under commercial law.
Typical individual EÜR questions
Vehicles, travel costs and private use
For business vehicles, private-use portions, logbook, one-percent method, travel costs and actual costs must be clearly separated.
Home office and domestic study
Expenses for a domestic study or home office are deductible only under the statutory conditions. Use, centre of activity and applicable lump sums are relevant.
Investment deduction and special depreciation
Investments may be anticipated or favoured for tax purposes under section 7g EStG if the requirements are met. Actual investment intention and later use must be considered.
Small entrepreneur or regular VAT taxation
Classification under section 19 UStG or regular VAT taxation affects invoicing, input VAT deduction, VAT returns and ongoing obligations.
Required information
The documents required depend on the specific facts. A tailored request is made after initial classification.
Outgoing invoices and incoming payments
Invoices, credit notes, payment overviews, platform statements and other evidence of business income.
Incoming invoices and expense receipts
Invoices, receipts, contracts, payment evidence, bank statements and other evidence of business expenses.
Assets and investments
Purchase documents, usage data, leasing or loan agreements and information on business or private use.
Private use and mixed expenses
Information on private co-use, business use, trips, premises, telephone, internet or other mixed-use assets.
Process
Classification
Review whether an EÜR is permissible and appropriate or whether bookkeeping or balance-sheet accounting is required.
Document request
Agreement on the required receipts, reports and supplementary information.
Profit determination
Recording and allocation of income, expenses, depreciation and other adjustments.
Transfer to the tax return
Transfer to the EÜR schedule and other affected tax returns, where commissioned.