Steuerberater Berlin: Managing Your Taxes Through Sorted
This page looks at how to manage your taxes in Berlin as a freelancer or self-employed business owner. Specifically, it looks at the services offered by Sorted, who can help you set up and manage your freelance tax affairs as well as connect you with English-speaking tax consultants (Steuerberater) in Berlin
Managing a freelance business or small company can be hectic. Between managing projects, clients, suppliers and costs, it is commonplace for taxes to be a secondary priority for many business owners.
But mismanaging taxes in Germany can quickly hamper your business. You will not only miss out on tax savings, but you may also run into problems with the tax office (Finanzamt), which can prove to be a time-consuming and costly affair.
To help you avoid common tax pitfalls in Germany, we suggest setting up and managing your tax affairs through Sorted, who will also connect you with an English-speaking Steuerberater (tax consultant) in Berlin that can advise, review and guide you through Germany’s complicated tax system.
Read on to find out about Sorted’s free and paid tax services…
Applying for a Freelance Tax Number (Steuernummer)
To issue invoices and process tax payments on income, it is essential that small business owners and freelancers in Germany have a freelance tax number (Steuernummer).
Due to its importance, applying for a freelance tax number from the local tax office (Finanzamt) should be high on the list of priorities – but getting this number is easier said than done. It involves completing a tricky 8-page freelance tax number form (Fragebogen zur steuerlichen Erfassung) in German, which must then be submitted to your local tax office.
This is where Sorted first come into the picture. As part of their free Starter plan, they offer a super helpful online service that guides you through the freelance tax number form in English. This ensures you understand the form fully and enter all the correct details. Better still, Sorted will then submit the completed freelance tax number form to your local tax office on your behalf.
Once submitted to the tax office, you can expect to receive your freelance tax number within 3–6 weeks, after which you are free to invoice clients and receive payment for your work. Sorted’s free online service is a far easier option than battling through the form in German so we highly recommend using it at the outset of your freelance/self-employed life in Berlin.
Managing your freelance business
Once you have received your Steuernummer, it is time to start operating as a freelancer/self-employed worker in Berlin. If you are new to the game, it can be difficult to know where to start. Again, Sorted has you covered:
Track your revenue and expenses
For any freelance business to run smoothly, you must have a good handle on the numbers. Having a precise overview of your business expenses can have a major impact on your margins – if managed correctly, you can minimise your tax bill considerably.
Thankfully, Sorted has nifty software that allows you to track your income and expenses with minimal effort. An intuitive interface ensures that you have a clear overview of the financial health of your business at all times.
This functionality is included in Sorted’s free Starter plan.
Prepare invoices
Sorted has integrated an invoice creation tool into their software. This tool not only produces professional-looking invoices but also ensures that you create legally compliant invoices that tick all the boxes for the German tax office (Finanzamt).
Again, this functionality is included in Sorted’s free Starter plan.
Submit your annual tax reports
A key event in any business owner’s year is their annual tax declarations. Come tax season, Sorted will automatically prepare and submit your tax reports to the German tax office based on the revenue and expenses data you have provided throughout the year.
For this, you have two plans to choose from:
Sorted’s Kleinunternehmer Plan
In Germany, a Kleinunternehmer is a small business owner (freelancer or self-employed worker) whose annual revenue (income before deductions) is below €22,000.
If you fit into this ‘small business owner’ category, then Sorted’s Kleinunternehmer Plan is designed for you. For just €80 per year, Sorted will take care of all your tax declarations as a Kleinunternehmer, including your:
Income tax return (Einkommensteuererklärung)
Annual profit report (EÜR)
Quarterly VAT reports (Umsatzsteuererklärung)
In short, for less than €7 per month, Sorted will cover all your tax needs as a Kleinunternehmer in Germany.
If are a freelancer in Germany and not classified as a Kleinunternehmer, then Sorted’s Pro Plan is designed for you. For €20 per month (billed quarterly), Sorted will take care of all your tax declarations as a freelancer, including your:
VAT reports
Annual profit report (EÜR)
Income tax return (Einkommensteuererklärung)
EC Sales list (Zusammenfassende Meldung)
Sorted’s Pro Plan removes the stress and uncertainty surrounding your tax declarations and helps ensure you submit the correct tax documents at the correct times throughout the year.
Working with a Steuerberater (tax consultant)
For most freelancers and small business owners, Sorted’s software does most of the legwork when it comes to taxes and bookkeeping. They also have a growing treasure trove of tax guides that provide clear, concise guidance on how best to manage your finances as a freelancer in Berlin.
But there may come a time where you need a little extra support from a Steuerberater (tax consultant) to handle your taxes. When you sign-up for Sorted’s Starter, Kleinunternehmer or Pro plan, you will be paired with a dedicated German tax firm that can provide English or German support. If you have any queries, would like to better understand a tax situation or would like your tax reports reviewed, your dedicated Steuerberater in Germany will be on hand to guide you.
While you will incur a small one-off fee each time you use the services of a tax firm through Sorted, you will have full transparency of the pricing before initiating any services.
In short, Sorted offers a one-stop-shop for setting up and managing your freelance taxes in Berlin. Through using Sorted’s intuitive, user-friendly software, you can steer clear of clunky government tax reporting tools (ELSTER) and convoluted paperwork, much of which is easy to get wrong without the right support. As an added bonus, Sorted gives you access to a certified Steuerberater (tax consultant), giving you the extra support you need with any lingering tax questions.
We hope you have found this guide helpful for managing your freelance taxes in Berlin. For further information on living in Berlin, check out our free guides and resources on our homepage.