(2025)
Should operating income be stated net or gross?
Business income must be stated at net value - that is, excluding VAT. The VAT applicable to this must be entered separately.
An exception applies to small businesses that do not show VAT in accordance with § 19 UStG: They state their business income at the invoice amount.
Business income must be declared in the year it was received. Regularly recurring business income belongs to the relevant year even if you receive it within 10 days before or after the end of the year.
Business income that is income tax-free does not need to be entered in the "Form EÜR" due to lack of query. This includes, for example:
- for start-ups, the start-up grant,
- investment allowance,
- tax-free portion of dividends from shares held as business assets. The taxable half of the dividends must be entered in the line "VAT-free, non-VATable business income".
Expense allowances from a privileged part-time activity remain tax-free:
- up to 3.000 Euro if you have a part-time job as a trainer, instructor, educator, etc., e.g. as a conductor, choir leader, trainer, teacher at an adult education centre or IHK, trainer at the fire brigade or DRK (so-called trainer allowance according to § 3 No. 26 EStG).
- up to 3.000 Euro if you work as a legal guardian, custodian or carer (so-called carer allowance according to § 3 No. 26b EStG).
- up to 840 Euro if you carry out other voluntary work in the non-profit sector, e.g. as an official, board member, fire brigade equipment manager, equipment manager (so-called volunteer allowance according to § 3 No. 26a EStG).
Note: In the past, tax-free income and related business expenses were not queried, with some exceptions. This has now changed. Now, for example, expense allowances for trainers or volunteers (§ 3 No. 26, 26a, 26b EStG), start-up grants (§ 3 No. 2 EStG) or restructuring income (§ 3a EStG) must be stated under business income. If or to the extent that this income is tax-free, it must be entered in lines 91-93, i.e. the initially declared (tax-free) business income is deducted here. If applicable, the trainer allowance of 3.000 Euro or the volunteer allowance of 840 Euro must be entered if no higher business expenses are claimed.
