When is a tax consultant worthwhile?

Tax consulting can be offered by tax advisors as well as lawyers and auditors.

In the case of private individuals, it is first of all a matter of whether or not the preparation of the income tax return is voluntary. If you have to file a tax return, you should check whether the expected tax refund is in proportion to the tax consultancy costs. Here it helps to determine the expected tax consultant costs with our computer.

Unfortunately, it is only with the receipt of the tax return that it is possible to say exactly whether the tax advisor has really paid off. That's the problem! However, it is hardly worthwhile to consult with normal employees, as the tax consultant costs often eat up the expected tax refund almost completely. Most tax exemptions can also be researched on the Internet with little time expenditure and asserted in the tax return.

If, on the other hand, you have income from various activities such as business activities and/or income from self-employment, then tax advice can actually be worthwhile. If you don't know anything about accounting and tax law, you should definitely turn to a tax consultant. Those who do not comply with the legal obligations will get into trouble very quickly.

Whether or not you need a tax consultant depends not only on your accounting and tax law knowledge. Especially freelancers and self-employed persons can hardly get around a consultation. A tax consultant will help you with the preparation of the revenue-surplus calculation (EÜR) and the profit calculation. Most of the time he finds deductible costs that most self-employed persons would not have claimed on their own.

In addition, tax consultants and auditors not only provide advice, they also take on ongoing tasks such as bookkeeping and payroll accounting.

When is a tax consultant worthwhile?

How are tax consultant's fees calculated?

Since 2012, the fees that a tax consultant may charge have been calculated in accordance with the Tax Consultant Remuneration Ordinance (StBVV) since 2012. There, it regulates for which activity the tax consultant can charge which fee.

Depending on the service and object value, it specifies a minimum and a maximum rate. The billed fee may not be below or above these two values. However, since the difference between the two values can amount to several thousand euros, there is no simple answer to the question of what a tax consultant costs.

Our calculator for determining the tax consultant's costs therefore gives you the minimum fee, the medium fee and the maximum fee depending on the object value. Many tax advisors orient themselves on the so-called average value. This is - as one might suspect - exactly the middle of these two values.

This legal regulation is intended to prevent a price competition between tax advisors, to ensure the quality of processing and to help the taxpayer to estimate a fee.

How are tax consultant's fees calculated?

What is the medium fee?

In a normal case, the tax consultant is entitled to the medium fee. The fee is generally levied when a matter of average weight, scope and difficulty is present and the client is in normal income and financial circumstances.

If the taxpayer invokes expenditures due to a double household management, from rental objects or a photovoltaic system, the work effort on the part of the tax consultant is higher and thus more expensive than a standard explanation. He may then also take the maximum fee!

The medium fee is therefore a good starting point for determining the appropriate fee, especially as the jurisdiction regularly uses this procedure. The medium fee is the average fee within a fee range. It is simply calculated by adding the minimum and maximum fee, divided by 2.

For example, the medium fee for the preparation of the income tax return amounts to 3,5/10 of the maximum fee.

What is the medium fee?

What are value fees (Wertgebühren)?

The Tax Consultant Remuneration Regulation provides for value-based fees (Wertgebühren), framework fees (Betragsrahmengebühren) and time fees (Zeitgebühren).

The tax consultant calculates value-based fees for the bookkeeping, the preparation of the balance sheet including profit and loss accounts and for tax returns. The value fees depend on the value of these tasks, the so-called object value.

The object value of the income tax return is, for example, the sum of income. The carrying amount of the bookkeeping is either the annual turnover or the sum of the expenses - whichever is higher.

Each item value is assigned a "full fee" in one of five tables of the Fee Ordinance. The amount of this full fee that the tax consultant may charge is limited by the Tax Consultant Remuneration Regulation (StBVV).

The Fees Regulation sets a maximum fee and a minimum fee for each activity, which the tax consultant may not exceed or fall below.

For an average amount of extensive and moderately difficult work, the tax consultant then has to choose the mean value between the lower and upper tenth rate - the medium fee.

What are value fees (Wertgebühren)?

What are the charges for expenses?

In addition to the fees resulting from the nature of the order, according to Section 4.1. StBVV, the tax consultant is entitled to reimbursements of:

• Fees to be paid in connection with postal and telecommunications services: The tax consultant may charge a flat-rate in lieu of the actual costs incurred. 20 % of the fee resulting from the StBVV, but not more than 20 euros in the same matter (§ 16 StBVV),
• Expenses for certain copies and photocopies (§ 17 StBVV),
• Travel expenses and accommodation costs as well as a daily allowance and an absence allowance for business trips (§ 18 StBVV) and
• The value added tax on the business activity (§ 15 StBVV), the standard tax rate of currently 19 % applies.

In our calculator a flat rate of 20 Euro will be assumed.

What are the charges for expenses?

Can a flat-rate fee be arranged with the tax consultant?

Instead of the individual settlement, the Tax Consultant Fee Ordinance also provides for the possibility of agreeing on a flat-rate remuneration (§ 14 StBVVV).

It can only be agreed in writing and for a period of at least one year for ongoing activities (e. g. accounting, consulting).

This is not an independent fee type, but merely a simplification rule.

Can a flat-rate fee be arranged with the tax consultant?