Guide
VAT for freelancers in Germany
Information only · updated for 2026 · no guarantee
Unless you use the small-business scheme, freelancing in Germany means you become a VAT collector: you add VAT to your invoices, hand it to the tax office, and reclaim the VAT you paid on your own costs. Once you see the rhythm — charge, report, offset — it is more routine than intimidating.
Charging VAT: 19 % or 7 %
Most freelance services are taxed at the standard rate of 19 %. A smaller set of supplies — for example certain writing, journalism and artistic work, plus books and similar — can fall under the reduced rate of 7 %. You add the VAT on top of your net fee and show it as a separate line on the invoice. To split any figure into net, VAT and gross, use our VAT calculator.
The advance VAT return (Umsatzsteuervoranmeldung)
You do not wait until year-end to settle VAT. During the year you file an advance VAT return — the Umsatzsteuervoranmeldung, often shortened to USt-VA — through ELSTER, the tax authority's online portal. In it you report the VAT you charged and the input VAT you paid, and transfer the difference (or receive a refund).
How often you file depends on last year's VAT:
| Prior-year VAT | Filing frequency |
|---|---|
| More than €9,000 | Monthly |
| €9,000 or less | Quarterly |
Each return is due by the 10th of the following month or quarter. If that is tight, you can apply for a Dauerfristverlängerung (permanent extension), which shifts every deadline back by a month. New freelancers are usually slotted into a filing rhythm when they register.
Input VAT (Vorsteuer): the money back
The upside of being in the VAT system is Vorsteuer — the input VAT you pay on business purchases. When you buy a laptop, pay for software or rent an office, the price includes VAT. You offset that input VAT against the VAT you collected from clients and only remit the balance. Over a year of equipment and subscriptions, that adds up.
The annual VAT return
On top of the advance returns, you file one annual VAT return (Umsatzsteuererklärung) that reconciles the whole year. The advance payments you already made are credited, so it usually just squares the books rather than producing a big new bill.
Frequently asked
How often do I file the advance VAT return?
It depends on last year’s VAT. If the VAT you owed for the prior year was more than €9,000, you file monthly. Otherwise you file quarterly. New businesses are often assigned to a set rhythm at registration.
When is the advance VAT return due?
The Umsatzsteuervoranmeldung is due by the 10th day of the following month (or following quarter). A permanent filing extension (Dauerfristverlängerung) can push each deadline back by one month.
What is Vorsteuer?
Vorsteuer is the input VAT you pay on your own business purchases. If you charge VAT, you can offset this input VAT against the VAT you collect, and only pay the difference to the tax office.
Legal basis: § 18 UStG (advance and annual VAT returns) — monthly filing if prior-year VAT exceeds €9,000, otherwise quarterly, due the 10th · § 15 UStG (input-VAT deduction). Related: VAT calculator · German article Umsatzsteuer-Voranmeldung.