Tax Registration Questionnaire: How to Fill It Out

Who is required to submit the questionnaire?

Anyone who opens a business or begins working as a freelancer (Section 138(1) and (1b) of the German Fiscal Code (AO)). The law does not specify a minimum income threshold; the obligation arises upon commencement of the activity.

The process varies depending on the type of business. Anyone starting a business follows a three-step process:

1. The business registration with the municipality (Section 14 of the Trade Regulation Act (GewO)).
2. The tax notification of the business opening to the municipality, using the officially prescribed form (Section 138(1) of the Tax Code (AO)). This notification triggers the following action: The municipality immediately informs the tax office of its contents. Where the municipality does not assess property taxes, the tax office takes its place, and the notification is then sent directly to the tax office.
3. The questionnaire to the tax office, submitted electronically as part of the official data record (Section 138(1b) of the German Tax Code (AO)). Through this questionnaire, you provide further information regarding the legal and factual circumstances relevant to taxation. That is why it has so many fields.

Business owners can also fulfill their reporting obligations electronically with the tax office. This is an option, not a substitute for the steps listed above.

Freelancers have only two steps: They must notify the tax office directly when they begin their work, and the questionnaire is the way to do this.

The questionnaire is available in different versions depending on the legal form of the business, such as for sole proprietorships and partnerships. This article describes the version for sole proprietorships.

What is the deadline?

One month after the reportable event (Section 138(4) of the German Fiscal Code (AO)). This deadline applies to all three notifications. This refers to the commencement of business operations, not registration with the municipality. You must submit the questionnaire electronically in the officially prescribed data format. Upon request, the tax office may waive the requirement for electronic submission to avoid undue hardship; in such cases, a paper form is used (Section 138(1b) of the German Fiscal Code (AO)). The notification of the business opening to the municipality, however, must be submitted using the official form.

What sections does the questionnaire have?

The questionnaire consists of several sections. The names are listed here exactly as they appear in the electronic form, in the order they appear in the form:

How do you estimate the revenue, and what does that mean for the small business exemption?

The questionnaire asks for the expected total revenue for the current and following year. The tax office uses this information as a basis for determining whether the small business exemption under Section 19 of the UStG applies: Total revenue in the previous year up to €25,000 and projected total revenue for the current year up to €100,000. Total revenue is the sum of taxable sales calculated based on payments received, even if you normally report your revenue based on agreed-upon payments. Turnover from fixed assets is not included: If you sell a car in the year you start your business, this will not cause you to exceed the €25,000 threshold. A description of this rule can be found in the article on the small business exemption.

In the year of establishment, actual revenue counts, not the estimate. Anyone who begins business operations during the course of a calendar year is assessed solely on the basis of the actual total domestic revenue for the current year. The threshold of €25,000 applies, not the €100,000 threshold. There is no annualization: If you start in November, you have the full €25,000 for two months. The estimate provided in the questionnaire is not binding. Anyone who estimates €20,000 and achieves €30,000 is not considered a small business owner in the year of establishment, retroactively for the entire year.

The second threshold is also strict: Even the portion of revenue that brings the total above €100,000 is subject to standard taxation in its entirety—not just the amount exceeding that threshold. Example based on the official model calculation: Last year’s revenue was €20,000; so far this year, it’s €80,000; a new order for €40,000 is paid immediately. With this payment, the threshold is exceeded, and the full €40,000 is subject to standard taxation. This has implications for invoicing, input tax credits, and advance VAT returns. The advance VAT return provides a separate field for this change, where you enter the date of the transaction that caused the threshold to be exceeded.

Small business owners do not report VAT, do not claim input tax credits, and generally do not file advance VAT returns. However, the tax office may require them to file a return. Anyone who opts out of this rule is bound by it for at least five calendar years (Section 19(3) of the UStG).

The estimated tax determines the advance return period. You must estimate it at the start of your business activity and report it to the tax office. For 2025 and 2026, the following applies to new businesses: If the expected tax is up to €9,000, the reporting period is quarterly; above that amount, it is monthly (Section 18(2) of the UStG). This rule is valid through 2026. In the following year, the actual tax from the previous year is converted into an annual tax amount. Example: Someone who starts a business in October and has €3,000 in tax by December will have an annualized amount of €12,000 and must file monthly returns the following year, even if they filed quarterly returns in the year the business was established. There is no exemption from advance tax returns in the year of establishment or the following year, even if the expected tax is very low.

How do profit estimates and advance payments work?

For the year you start your business and the following year, you must report your expected profit, as well as any expected special expenses and deductions. In the year the business is established, there is no final tax assessment, which would otherwise serve as the basis for calculating advance payments. Therefore, your information is the sole basis on which the tax office determines advance income tax payments via an advance payment notice. These payments are due on March 10, June 10, September 10, and December 10 (Section 37(1) of the Income Tax Act (EStG)).

Advance payments are assessed only if they amount to at least €400 per calendar year and at least €100 per installment (Section 37(5) of the Income Tax Act (EStG)). The tax office may adjust them to the estimated tax by the end of the 15th calendar month following the tax year (Section 37(3) of the Income Tax Act (EStG)).

Increases are subject to specific thresholds: Fixed advance payments are increased only if the amount of the increase per payment is at least €100; for a retroactive increase, the amount must be at least €5,000. The retroactive increase applies to the last advance payment of the year. The increase must be paid within one month of the notice being issued. This explains the sudden large amount of the final payment.

What is actual-based and target-based control?

Under the accrual method, VAT becomes due at the end of the advance return period in which you provided the service. This is the standard method under the law. However, if the payment or a portion thereof is received before the service is rendered—for example, in the case of advance payment—the tax becomes due to that extent at the end of the advance return period in which the money is received. Under the actual-receipt method, the tax always becomes due at the end of the period in which the money is received (Section 13(1)(1) of the UStG). Taxation based on actual receipts requires an application, which the tax office may approve (Section 20(1) of the UStG). This is a matter of approval, not an entitlement.

The law lists several requirements; meeting just one is sufficient. For sole proprietors, three of these apply:

1. Total revenue in the previous year did not exceed €800,000. In the year the business begins operations, the projected total revenue must be used as the basis. This is the same total revenue threshold as under the small business regulation: one entry on the questionnaire, two decisions.
2. You are a self-employed professional. There is no revenue limit for this, but it applies only to revenue from self-employment; in the case of mixed activities, it applies only to that portion. Approval will not be granted if you keep books for this revenue, even if you do so voluntarily.
3. You are exempt from the accounting requirement (Section 148 of the German Fiscal Code [AO]). This applies only in cases of exceptional hardship—for example, if the revenue threshold is exceeded due to extraordinary and one-time business transactions—not generally because of a lack of an accounting requirement.

You can file the application for actual-based taxation until the annual VAT assessment becomes formally final. Anyone who did not check the box on the questionnaire can still do so later. It is also possible to switch back to estimated-based taxation retroactively until the annual assessment becomes final. The approval is always valid for the full calendar year and is subject to revocation at any time. When switching, sales must not be recorded twice or remain untaxed.

How do you apply for a VAT ID number?

The Federal Central Tax Office issues the VAT identification number upon application (Section 27a(1) of the UStG). The application must be submitted in writing and must include your name, address, and the tax number under which you are registered for VAT purposes. Without a tax identification number, the application is incomplete. That is why using the questionnaire at the beginning is the only way that works: You submit the application via the questionnaire, and the tax office forwards the necessary information to the Federal Central Tax Office. This number is different from the tax identification number, which is assigned by the tax office.

The tax office may revoke the assigned number if there are serious indications or evidence that it is being used in a manner that jeopardizes VAT revenue.

What happens after I submit the form?

The tax office reviews the questionnaire, assigns a tax identification number, and, where warranted based on the information provided, sets advance payments via an advance payment notice. The nature of the activity also determines whether it is classified as a business or a freelance profession. This can have implications for trade tax.

Once you have your tax ID number: You can file your preliminary tax return and prepare your EÜR using taxtastic.