Accounting
Income-Expenditure Statement (EÜR): Complete Step-by-Step Guide 2025
Everything about the Income-Expenditure Statement (EÜR): Who must file, how to create one correctly, official forms, practical examples, and common mistakes to avoid.
Income-Expenditure Statement (EÜR): Complete Guide for Self-Employed
The Income-Expenditure Statement (Einnahmen-Überschuss-Rechnung, EÜR) is the simplified profit determination method for small businesses in Germany. This comprehensive guide explains everything you need to know: who may use EÜR, how to prepare it correctly, what the Anlage EÜR requires, and which mistakes you should avoid.
What is the Income-Expenditure Statement (EÜR)?
The EÜR is a simplified method of profit determination for tax purposes. Instead of double-entry bookkeeping with balance sheets, you simply compare your business income with your business expenses:
Profit = Business Income - Business Expenses
This cash-flow principle means: Only when money actually flows (incoming or outgoing) do you record it. An invoice you send in December but receive payment for in January is income for the new year.
Cash-Flow Principle: Key Rule
| Transaction | Recording Date |
|---|---|
| Invoice sent | When payment is received |
| Invoice received | When payment is made |
| Cash purchase | Immediately on purchase date |
| Direct debit | Date of bank debit |
Important exception: For recurring expenses (rent, insurance) that fall within a 10-day window around year-end, special rules apply (Section 11 EStG).
Who May Use the Income-Expenditure Statement?
You may prepare an EÜR if you meet one of these conditions:
Option 1: Freelancers (Freiberufler)
All freelance professionals according to Section 18 EStG:
- Doctors, lawyers, tax advisors, auditors
- Architects, engineers, consultants
- Artists, writers, journalists
- IT freelancers, designers, translators
Freelancers may ALWAYS use EÜR - regardless of income level!
Option 2: Small Business Owners (Gewerbetreibende) Below Thresholds
Commercial business owners may use EÜR if they do not exceed these limits:
- Revenue: Maximum €600,000 per year
- Profit: Maximum €60,000 per year
Important: If you exceed these limits, the tax office will notify you. You must then switch to balance sheet accounting.
Option 3: Agriculture and Forestry
Operations with revenue up to €600,000 may use EÜR.
Structure of the Income-Expenditure Statement
The EÜR follows a clear structure that is also reflected in the official Anlage EÜR:
Part 1: Business Income
| Line | Income Type |
|---|---|
| 1 | Revenue from sales/services |
| 2 | VAT received from customers |
| 3 | Private use of business assets |
| 4 | Other income (interest, etc.) |
| 5 | Grants, subsidies |
Part 2: Business Expenses
| Line | Expense Type |
|---|---|
| 1 | Cost of goods sold |
| 2 | Personnel costs |
| 3 | Depreciation |
| 4 | Other operating expenses |
| 5 | Vehicle costs |
| 6 | Travel expenses |
| 7 | Entertainment expenses |
| 8 | Office supplies |
| 9 | Insurance, contributions |
| 10 | Advisory fees (attorney, tax advisor) |
Part 3: Profit Determination
Total Business Income
- Total Business Expenses
= Profit / Loss
The Anlage EÜR: Official Tax Form
Since 2017, the Anlage EÜR must be electronically submitted to the tax office. Paper submission is only possible in hardship cases.
Important Lines in the Anlage EÜR
| Line | Content | Note |
|---|---|---|
| 11 | Revenue (net) | Without VAT |
| 12 | Revenue (VAT-exempt) | e.g., small business |
| 14 | Collected VAT | VAT from invoices |
| 25 | Cost of goods | Direct material costs |
| 26 | Personnel costs | Gross wages + benefits |
| 27-35 | Depreciation | AfA by category |
| 36-47 | Other expenses | Operating costs |
| 60 | Special expenses | Limited deductible |
| 87 | Profit/Loss | Final result |
Submit Electronically via ELSTER
- Register at elster.de
- Select "Einnahmenüberschussrechnung" form
- Fill in all required lines
- Verify plausibility
- Submit digitally
Step-by-Step Instructions: Preparing an EÜR
Step 1: Record All Income
List all business income:
Date | Description | Amount (Net) | VAT | Total
-----------|---------------------|--------------|----------|--------
01/15/2025 | Web design ABC GmbH | €2,500.00 | €475.00 | €2,975.00
02/03/2025 | Consulting XY AG | €1,800.00 | €342.00 | €2,142.00
02/20/2025 | Logo design private | €500.00 | €95.00 | €595.00
... | ... | ... | ... | ...
-----------|---------------------|--------------|----------|--------
Total | | €48,500.00 | €9,215.00| €57,715.00
Step 2: Capture All Expenses
Categorize expenses according to Anlage EÜR:
Date | Expense | Category | Net | VAT
-----------|---------------------|-------------------|----------|--------
01/10/2025 | Office rent | Room costs | €800.00 | €152.00
01/15/2025 | New laptop | Equipment (AfA) | €1,200.00| €228.00
01/18/2025 | Office supplies | Other expenses | €45.00 | €8.55
... | ... | ... | ... | ...
-----------|---------------------|-------------------|----------|--------
Total | | | €18,750.00| €3,562.50
Step 3: Calculate Depreciation (AfA)
For assets over €800 net, depreciation applies:
Example: Computer for €1,200 net
- Useful life: 3 years
- Annual depreciation: €1,200 ÷ 3 = €400
Asset | Acquisition | Value | Life | AfA/Year
-------------|-------------|---------|-------|----------
MacBook Pro | 01/2025 | €1,800 | 3 yrs | €600
Office desk | 03/2025 | €900 | 13 yrs| €69
Smartphone | 06/2025 | €1,100 | 5 yrs | €220
Camera | 09/2025 | €2,400 | 7 yrs | €343
-------------|-------------|---------|-------|----------
Total AfA | | | | €1,232
Step 4: Calculate Profit
Business Income (net) €48,500.00
+ Collected VAT + €9,215.00
= Total Income €57,715.00
Business Expenses (net) €18,750.00
+ Paid input VAT + €3,562.50
+ Depreciation + €1,232.00
= Total Expenses €23,544.50
PROFIT €34,170.50
Step 5: Fill Out Anlage EÜR
Transfer values to the correct lines of the Anlage EÜR.
Practical Example: Complete EÜR
Scenario: Freelance Web Designer
Lisa, freelance web designer, fiscal year 2025:
Income:
- Web design projects: €52,000 (net)
- VAT collected: €9,880
- Small jobs (private): €3,000 (net)
- Total income: €64,880
Expenses:
- Office rent (home office): €4,800
- Software subscriptions: €1,200
- Hardware (MacBook, monitor): €2,800 (depreciated)
- Travel expenses: €1,500
- Phone/internet: €960
- Professional insurance: €600
- Tax advisor: €1,800
- Marketing: €500
- Total expenses: €14,160
Depreciation:
- Hardware: €933 (3-year depreciation)
- Total AfA: €933
EÜR Calculation:
Income (net) €55,000.00
- Expenses €14,160.00
- Depreciation € 933.00
= PROFIT €39,907.00
Common EÜR Mistakes and How to Avoid Them
Mistake 1: Recording Invoices Instead of Payments
❌ Wrong: Recording invoice date as income ✅ Correct: Recording payment receipt date as income
The cash-flow principle applies: What matters is when money flows, not when the invoice was created.
Mistake 2: Forgetting Private Use
If you use business assets privately, you must account for this:
- Vehicle: 1% rule or mileage log
- Phone: Estimate private share
- Home office: Separate clearly
Mistake 3: Ignoring Depreciation Limits
| Purchase Value (net) | Treatment |
|---|---|
| Up to €250 | Immediately deductible |
| €250.01 - €800 | Pool or immediate deduction |
| €800.01 - €1,000 | Pool depreciation (5 years) |
| Over €1,000 | Regular depreciation (AfA) |
Mistake 4: Not Keeping Documentation
Even with EÜR you must retain:
- 10 years: Invoices, bank statements, contracts
- 6 years: Business correspondence
Mistake 5: Wrong Expense Categories
The Anlage EÜR has specific expense categories. Incorrect assignment can lead to inquiries from the tax office.
EÜR with Invoicing Software
Modern invoicing software like Clever Invoice significantly simplifies EÜR preparation:
Advantages of Digital Solutions
- Automatic Recording
- Income captured directly from invoices - Expenses from bank integration - No manual entry
- Correct Categorization
- Expenses automatically assigned - Anlage EÜR categories recognized - Fewer errors
- Real-Time Overview
- Current income/expense status - Estimated profit display - Tax planning possible
- Export Function
- DATEV export for tax advisor - Direct connection to ELSTER - All documentation in one place
Checklist: Preparing for EÜR
Monthly Tasks
- [ ] Record all income
- [ ] Categorize all expenses
- [ ] File receipts digitally
- [ ] Reconcile bank statements
- [ ] Record private use
Annual Tasks
- [ ] Complete depreciation schedules
- [ ] Check 10-day rule (year-end)
- [ ] Calculate total income and expenses
- [ ] Prepare Anlage EÜR
- [ ] Submit via ELSTER
EÜR vs. Balance Sheet Accounting
| Criterion | EÜR | Balance Sheet |
|---|---|---|
| Profit determination | Cash-flow | Accrual |
| Receivables/Payables | Not recorded | Recorded |
| Inventory | Simplified | Required |
| Effort | Low | High |
| Costs | Lower | Higher |
| Suitable for | Small business | Large business |
Summary
The Income-Expenditure Statement (EÜR) is the simplest form of profit determination for self-employed individuals and small business owners. The most important points:
- Cash-flow principle: Record when money flows
- Threshold limits: Revenue €600,000, profit €60,000
- Anlage EÜR: Submit electronically via ELSTER
- Depreciation: Consider for assets over €800
- Documentation: 10-year retention period
With good preparation and the right software, EÜR is manageable even without accounting experience. The effort pays off: You maintain complete financial overview and are always prepared for tax time.
Pro Tip: Start with professional invoicing software from day one. The automatic recording of income and expenses saves hours of work and minimizes errors in your EÜR.
Frequently asked questions
What is the income limit for EÜR?
Commercial business owners may use EÜR as long as their annual revenue does not exceed €600,000 and their annual profit does not exceed €60,000. Freelancers (Freiberufler) may always use EÜR regardless of income level.
What is the cash-flow principle in EÜR?
The cash-flow principle means you record income when payment is actually received and expenses when payment is actually made. An invoice sent in December but paid in January counts as January income.
Must I submit EÜR electronically?
Yes, since 2017 the Anlage EÜR must be submitted electronically via ELSTER. Paper submission is only allowed in documented hardship cases.
What is the difference between EÜR and balance sheet accounting?
EÜR uses the cash-flow principle (when money flows), while balance sheet accounting uses the accrual principle (when claims arise). Balance sheet accounting also requires recording receivables, payables, and inventory, making it more complex.
How long must I retain EÜR documents?
Invoices, bank statements, and contracts must be retained for 10 years. Business correspondence must be kept for 6 years. These periods begin at the end of the calendar year in which the document was created.
When must I switch from EÜR to balance sheet accounting?
You must switch to balance sheet accounting when your annual revenue exceeds €600,000 or your annual profit exceeds €60,000. The tax office will notify you. The switch typically takes effect at the start of the following fiscal year.