All the expenses related to self-employment need to be entered within the tool step named "EXPENSES AS SELF-EMPLOYED". Ensure you don't enter self-employment expenses into other tool steps, which are meant for employees, such as "Work-related Fees", "Study/Work Costs" or "Trips to Work".
Expense costs are only valid for the year the invoice was paid (not when the invoice was written). This includes providing documentation for 10 years - the tax office can request the information you provided about your expenses in your tax declaration for this period.
Select the type of expense from the list:
Business expenses are costs that were generated for business operation. They are the result of business actions. Essentially, this means that money and sometimes even real assets flow. Business expenses are always in an economical context with the business itself, the self-employed worker or freelancer. Expenses originating from business, reduces profit and is accompanied by realised revenue.
Material assets, e.g. laptop, mobile phone, machines, fleet, factory and office equipment, goods as well as the operating facilities are considered movable assets.
Goods, raw materials and auxiliary supplies incl. incidental costs
This concerns the expenses for raw materials and auxiliary supplies for product manufacturing. The transition from raw materials to auxiliary supplies is fluent. Raw material forms the main component of the component (e.g. wood). Auxiliary supplies are minor components; however, they are needed for the product as well (e.g. nails).
Related contracted services
Expenses for services that are bought in order to complete your own service and/or to manufacture your own product are “related contracted services.” It is typical for the customer to invoice expenses for third-party services.
Rent/lease for business premises and business property
Enter the information here if you rent or lease an office, factory, warehouse or property. In addition to the actual rent/lease, this includes running costs like utilities (gas, electric, water and waste).
Telecommunication expenses (e.g. telephone, internet)
Telecommunication expenses that arise from business in the form of fees or running costs can be deducted from your income taxes as business expenses as long as it is used within the scope of your occupation.
Accommodations and travel expenses accrued during business trips
Those who have to travel for business reasons can generally deduct these costs as a business expense. However, not all costs will be refunded and the law stipulates flat rates for specific expenses. Deductible expenses are primarily accommodations, travel costs, other business travel-related expenses etc.
Additional meal allowances
Flat rates can be used for additional meal expenses for domestic business trips. 24 Euro for each calendar day in that the traveller has been away from their home for 24 hours and/or are absent from their normal place work. If you do not spend the night before or after the arrival date and departure date in your own home, you can add an additional 12 Euro. Business trips without an overnight stay that are longer than eight hours can also have 12 Euro added for meal allowances.
Continued education (without travel expenses)
Continued education costs are included in advertising costs and the amount is unlimited. For example, travel expenses, work equipment, attendance fees etc.
Legal and tax consultation, accounting expenses
Freelancers and self-employed workers can outsource their accounting. Even a self-employed accountant can be considered for outsourcing your accounting. The costs from services rendered can be deducted.
Rent/leasing for movable assets (without vehicle)
This includes all renting or leasing expenses for movable assets. Renting or leasing a vehicle is not included in this. For example, machines, office furniture/equipment or IT equipment.
Advertising costs (e.g. newspaper ads, commercials, print material)
These business expenses are all categorised as costs that were used for “advertising” a business. For example, this includes business cards, fliers, advertisements, ads, commercials or other advertising.
Entertainment costs are incurred when a business partner or other person is entertained for business reasons. However, these expenses are not deducted 100%; instead, only 70%. If a freelancer is contracted by a company, then the expenses incurred may be deducted 100% from the taxes.
Vehicle leasing expenses
Self-employed and freelancers can only partially deduct leasing costs for a vehicle. The ratio that the vehicle is used for business and/or occupational trips is crucial here. This is determined via the mileage (kilometres driven). Business and private kilometres are recorded separately and are compared to each other.
Taxes, insurance and toll costs for vehicles
Not only can vehicle tax, but also all vehicle costs can be completely deducted from your taxes under certain conditions as a freelancer or self-employed worker. All other costs that are the result of purchasing or receiving a vehicle can be applied in the tax declaration. Naturally, it’s required that you use the vehicle primarily for business. Officially, the vehicle must be used between 50% and 100% of the time for business purposes.
Other effective vehicle costs without depreciation and interest
Expenses for third-party transportation (taxi, plane, train, public transportation) can be completely deducted.
Miscellaneous unlimited deductible operating expenses (account fees etc.)
All expenses that cannot be allocated to any category are entered here. For example, postage, shipping materials, money transaction expenses, hosting expenses, expenses for online tools like CRM, accounting or newsletters, purchase of books, magazines, occupational journals and work clothes.
Contributions, fees, duties and insurance (not for buildings or vehicles)
Examples for this category are liability and legal insurance, but also broadcast licensing fees, business registration fees or Chamber of Commerce fees.