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Working freelance in Germany for a UK company

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I am an australian citizen based in germany and teaching english as a freelancer. I have had a further business opportunity present itself to become a reseller for a company based in the UK. I will have the ability to sell this product (an online product) globally. My question is around the UK company paying here in Germany and the tax I am liable for. I assume it would be classed as my wage (it is a commissin for each sale on-going for 12 months) and therefore subject to my tax rate %. Further to this can I remain a freelance operator for teaching and to resell this product or will I need to set-up my own business of sorts.

 

This to me seems complicated but maybe someone here can help before I talk to the tax man here in germany.

 

Thanks

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while in a situation like yours it is alway advisable to get assistance from a certified tax advisor (check the adds on Toytown for recommendable blokes), this is how it looks to me:

 

- payment from the UK company will not be considered as "employment" from German authorities, rather as an additional source of income. this will be simply added to your other income and then taxed accordingly. Which means that your tax rate may go up if and when you reach a higher income/tax bracket.

 

- depending on how much income you'll generate in comparison to your teaching income, it might even get you of the hook for having to contribute into public pension system as a teacher. I believe to remember that if your income comes more from other occupations then teaching, that you do not need to contribute to the public pension (anymore) - but others might now more about this

 

- it might be necessarry that you list yourself as "Gewerbe" with the local authorities, depending on the goods you sell. Also make sure beforehand if there are any other regulations or licences to obtain in Germany for being able/allowed to sell these products

 

Cheerio

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It's not difficult to. Loads of self-employed people in Germany get income from more than one source and / or in different fields.

 

The main thing is to be transparent - declare the income. Associated with that, as mentioned, is to make sure your status with Finanzamt matches what you are doing. For which a Steuerberater may indeed be helpful at least you sorted in your new arrangement. You may also have new things to think about (VAT??).

 

I presume also there's no issue about what any visa may say you are allowed to do for employment (or not) in Germany.

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Thanks,

 

The product I will be selling is an online video product. I am currently registered (to the best of my knowledge after organising my tax number the other day) as a Freelance Teacher. It sounds like any additional income will simply be regarded as just that, income. There is a change though that I could be quite successful with the reselling of this as I have the specific contacts required so the income level could quite away the teaching, would I then be best to give up the teaching or reduce the income I receive from the reselling.

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It's probably earned income and would be treated as such by Finanzamt. Perhaps the first step would be to go to Finanzamt and ask them what to do. If you envisage a reasonable income, your work may well come within VAT scope (ie. even if you don't actually put VAT on a bill to a UK client).

 

 

There is a change though that I could be quite successful with the reselling of this as I have the specific contacts required so the income level could quite away the teaching, would I then be best to give up the teaching or reduce the income I receive from the reselling.

Only you can judge what you are better off doing. Nobody else can do that for you. One option would be to balance them both at the start and giving the on-line video part time to see what the income stream really is. There's a big jump between "contact" and "sale" particularly in lean economic times. But if it's a rip-roaring success, then of course you could scale down the teaching.

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Thanks,

 

I am assuming as well it is earned income, I am on a Working Holiday Visa, would this make any difference?

 

And yes don't worry I'm aware of the difference between contact and sale, as a sales person already I'm fairly aware hehe. Given the contacts are within my previous field of work it should hopefully be fairly lucrative.

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