{"id":2105,"date":"2021-08-25T18:37:34","date_gmt":"2021-08-25T16:37:34","guid":{"rendered":"https:\/\/www.accountable.de\/?p=2105"},"modified":"2023-06-15T14:25:41","modified_gmt":"2023-06-15T12:25:41","slug":"understanding-the-finanzamt-the-istversteuerung-letter","status":"publish","type":"post","link":"https:\/\/www.accountable.de\/en\/blog\/understanding-the-finanzamt-the-istversteuerung-letter\/","title":{"rendered":"Understanding the Finanzamt &#8211; The Istversteuerung letter"},"content":{"rendered":"\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\"><strong>You received a&nbsp;complicated letter written in German by the Finanzamt? No worries, after you registered as self-employed, you will get several letters, one of them is to inform you about the way you need to file VAT.&nbsp;<\/strong><strong>In this article, we explain what information you can take from this letter step by step.<\/strong><\/p>\n\n\n\n<h2 id=\"what-is-istversteuerung-and-sollversteuerung\" class=\"wp-block-heading font-degular scroll-mt-32\">What is Istversteuerung and Sollversteuerung?<\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">The letter you received tells you about your status concerning <strong>Istversteuerung<\/strong> and <strong>Sollversteuerung<\/strong>. You&#8217;re wondering what the hell that means? It&#8217;s actually not too complicated. The Sollversteuerung (debit&nbsp;taxation) is &#8220;taxation according to agreed charges&#8221;, while Istversteuerung (actual taxation) is &#8220;taxation according to received charges.&#8221;<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">In simplified terms, with Sollversteuerung the VAT you need to submit to the Finanzamt is already due when you issue an invoice. With Istversteuerung, the VAT is due when the money is received. The Istversteuerung is therefore more favorable for many freelancers, because you don&#8217;t have to pay VAT before you get the money from your client. However, you must meet some rules, in order to be eligible for it.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1017\" height=\"903\" src=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Screenshot-2021-08-24-at-15.54-1.png\" alt=\"\" class=\"wp-image-2108 rounded-lg max-w-full h-auto my-6\" srcset=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Screenshot-2021-08-24-at-15.54-1.png 1017w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Screenshot-2021-08-24-at-15.54-1-323x287.png 323w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Screenshot-2021-08-24-at-15.54-1-768x682.png 768w\" sizes=\"auto, (max-width: 1017px) 100vw, 1017px\" \/><\/figure>\n<\/div>\n\n\n<h2 id=\"what-the-letter-tells-you\" class=\"wp-block-heading font-degular scroll-mt-32\">What the letter tells you<\/h2>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">The first paragraph informs you in a typical long, German sentence, that you are allowed to make use of the Istversteuerung.<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-2110\" src=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.11.57-1024x199.png\" alt=\"\" width=\"1024\" height=\"199\" srcset=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.11.57-1024x199.png 1024w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.11.57-323x63.png 323w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.11.57-768x149.png 768w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.11.57.png 1494w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\"><strong>\ud83d\udca1Tip from Accountable:<\/strong> You have troubles understanding the letter from the Finanzamt? Use our free AI tool to scan the letter and receive an instant summary and explanation of what you have to do! <a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/www.finanzamt-brief.de\/en\">Test it now for free!<\/a>  <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">The next part explains why you are eligible for Istversteuerung, and don&#8217;t need to do Sollversteuerung. Mainly, because for your freelance-work, you will use the profit &amp; loss statement in order to compute your profit (and not double-entry bookkeeping) and you didn&#8217;t make more than 600.000\u20ac in the previous year.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"183\" src=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.06-1024x183.png\" alt=\"\" class=\"wp-image-2112 rounded-lg max-w-full h-auto my-6\" srcset=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.06-1024x183.png 1024w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.06-323x58.png 323w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.06-768x137.png 768w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.06.png 1490w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">The last paragraph informs you that, should one of those rules not apply to you anymore, you need to switch to Sollversteuerung from the following year on, without any further notice.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"125\" src=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.12-1024x125.png\" alt=\"\" class=\"wp-image-2114 rounded-lg max-w-full h-auto my-6\" srcset=\"https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.12-1024x125.png 1024w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.12-323x39.png 323w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.12-768x94.png 768w, https:\/\/www.accountable.de\/wp-content\/uploads\/2021\/08\/Bildschirmfoto-2021-08-25-um-16.12.12.png 1472w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\">You see, the letters that the Finanzamt sends you look kind of scary and complicated at first, but once you understand them, they hold a lot of important information about your start as a self-employed person.<\/p>\n\n\n\n<p class=\"font-inter text-base leading-relaxed mb-4 first-of-type:mt-0 text-black wp-block-paragraph\"><strong>Tip from Accountable\ud83d\udca1:<\/strong>\u00a0Accountable is a tax software and app that covers all your tax returns and bookkeeping obligations as a freelancer. Of course, we also support the Istversteuerung, so that you can submit your taxes stress-free to your Finanzamt. <a class=\"font-inter text-purple underline underline-offset-1\" href=\"https:\/\/accountable.app.link\/H3orPmEb0ab\">You can try it here for free<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You received a&nbsp;complicated letter written in German by the Finanzamt? No worries, after you registered as self-employed, you will get several letters, one of them is to inform you about the way you need to file VAT.&nbsp;In this article, we explain what information you can take from this letter step by step. What is Istversteuerung [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":2106,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[27],"tags":[123],"class_list":["post-2105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-important-things-to-know","tag-finanzamt-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding the Finanzamt - The Istversteuerung letter | Accountable<\/title>\n<meta name=\"description\" content=\"You got a letter by the German Finanzamt saying Berechnung der Umsatzstzeuer nach vereinnahmten Entgelten gem\u00e4\u00df \u00a720UStG? 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