Freelancer with projects from abroad

9 posts in this topic

Hello everyone!

I'm a Romanian freelance video editor in Germany and got a project for a Romanian client. I have a few questions and hope to find answers for all of them, here.

 

1. If my yearly income is less than 8000 Euros, do I have to pay any taxes for the project with the Romanian client?

2. Do I have to write something specific on the bill for the client, other than what I would write in a normal bill?

3. What happens if I'm registered as a freelance video editor and I earn money from a project where I do something else than video editing? 

 

Thank you so much, this forum helped me greatly already!! 

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  1. No.
     
  2. The invoice will be without VAT, your client will have to declare it in his Romanian VAT announcement.
    You have to mention your client's VAT ID in your invoice, this is also the proof that the client is a business.
    You will have to file a Zusammenfassende Meldung citing your client's VAT ID and the amount from your invoice, and file a VAT announcement in which you declare the amount in line 41, field 21.
    You also have to include this reverse-charge sentence in your invoice: "Steuerschuldnerschaft des Leietungsempfängers gemäß §13b UStG", if you like, you can also include the Romanian phrase from page 7 of this document: http://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2013-10-25-ausstellung-von-rechnungen.pdf?__blob=publicationFile&v=3
     
  3. Nothing, you just have to declare it.
     

You will need to announce the Finanzamt that you will start being self-employed with a "Fragebogen zur steuerlichen Erfassung", details in here:

 

If your activity is gewerblich (which it sounds like), i.e. not artistic in your case, you will also need a Gewerbeschein from your city.

 

You will also need an Elster certificate, you apply for it using your Steuer ID:

You will need the Elster certificate to file the VAT announcement and the Zusammenfassende Meldung.

Please also read the section "With ElsterFormular you can do" in the TT Elster wiki: https://www.toytowngermany.com/wiki/ELSTER

 

You will have to do a tax return for 2017 before 31. May 2018, details in the turquoise section of the TT Elster wiki: https://www.toytowngermany.com/wiki/ELSTER

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Thank you for the very detailed answer! I just found out that my client is a non-profit organization so they don't pay any VAT. What do I do in this case?

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If they do not have a VAT ID, you would normally have to charge 19% German VAT in your invoice.

However, if your yearly turnover is under 17,500€ you're a Kleinunternehmer and do not charge VAT.

 

You have to write the sentence "Als Kleinunternehmer im Sinne von § 19 Abs. 1 UStG wird keine Umsatzsteuer berechnet." into all your invoices as an explanation why you're not charging VAT.

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Thanks so much for your help! One more question about billing the client. Can I give my Romanian bank details as Bankverbindung? It makes much more sense to me, as I would pay fewer taxes to the bank if the money comes from Romania. Or does it have to be a German bank account?

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Yes, no problem.

It doesn't matter in what country the bank account is, you just have to declare your worldwide income in your German tax return.

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Aaaand, hopefully the last question: what happens if the bill is in RON (the Romanian currency) and not in Euro? Or is it mandatory to be in Euro? Million thanks!

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On 17.5.2017, 14:22:37, PandaMunich said:

If your activity is gewerblich (which it sounds like), i.e. not artistic in your case, you will also need a Gewerbeschein from your city.

 

Video editing is considered an artistic profession for which you don't need to register a business, something I have had to point on several occasions at the job center. I can't find the paragraph at the moment but I have cited it to the job center previously to which they answered "Ach so" apparently not aware of the law.

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