Tax Return for Self-Employed: Complete Guide 2025

The tax return as a self-employed person can seem overwhelming. With this guide, you'll stay on top of things and get the maximum out.

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Mandatory or Voluntary?

You must file a tax return if:

• You have income from self-employment (§ 18 EStG)
• You have income from business (§ 15 EStG)
• Your profit exceeds €410 per year
• You are liable for VAT

Deadlines 2025

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The Most Important Forms

For All Self-Employed

Depending on Situation

• Annex Kind - If you have children
• Annex AV - For Riester pension
• Annex N - With additional employment
• VAT Return - If VAT liable

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Income-Expense Statement (EÜR)

Who Can Use the EÜR?

• Freelancers (always)
• Business owners with:

- Revenue < €600,000/year - Profit < €60,000/year

The Principle is Simple:

Business income
- Business expenses
= Profit/Loss

Cash Basis Principle

• Income counts when money comes in
• Expenses count when money goes out
• Invoice date is irrelevant!

Example: Invoice issued December 15, 2025 Payment received January 10, 2026 → Counts as income 2026!

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What Can You Deduct?

Business Expenses (Most Important)

Depreciation (AfA)

Larger purchases are spread over years:

GWG Limit: Items up to €800 net can be deducted immediately!

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Don't Forget Special Expenses

Pension Expenses

• Health insurance (basic contributions fully deductible)
• Long-term care insurance
• Pension insurance (voluntary contributions)
• Disability insurance

Other Special Expenses

• Donations and membership fees
• Church tax
• Childcare costs (2/3, max €4,000/child)
• Training costs

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VAT Return

Who Must File It?

All entrepreneurs who are not small businesses.

Content

• Annual revenue by tax rates (19%, 7%, 0%)
• Input VAT from incoming invoices
• Advance payments already made
• Additional payment or refund

Small Business (§ 19 UStG)

• No VAT return needed
• But: Report revenues in Annex S/G

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Step-by-Step: How to Proceed

1. Collect Receipts (Year-Round)

• Document all income
• Keep all expenses with receipts
• Digital is allowed (GoBD-compliant)

2. Create EÜR (January-February)

• Add up income
• Categorize expenses
• Determine profit

3. Fill Out Forms (February-March)

• Use ELSTER (free)
• Or tax software
• Or hire tax advisor

4. Review and Submit

• Check all information
• Keep receipts ready (don't send!)
• Submit electronically

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ELSTER: The Free Solution

Advantages

✅ Free ✅ Direct transmission ✅ Automatic calculation ✅ Import previous year's data

Disadvantages

❌ No tax tips ❌ Not very user-friendly ❌ No support for questions

Alternative: Tax Software

• WISO Steuer (approx. €30-40)
• tax (approx. €15-30)
• Taxfix (approx. €40)

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Avoid Common Mistakes

❌ Throwing away receipts - 10-year retention requirement! ❌ Deducting private expenses - Only business costs ❌ Forgetting input VAT - Check every incoming invoice ❌ Calculating depreciation wrong - Use AfA tables ❌ Missing deadlines - Late filing penalty applies!

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Conclusion

1. Collect receipts year-round - Digital or folder
2. Create EÜR carefully - All income and expenses
3. Use all deduction options - Home office, travel costs, etc.
4. Submit on time - Watch deadlines

With Clever Invoice you have all income automatically documented - perfect for your tax return.