Deutschland Kompass
STEP

ELSTER: Tax Registration for the Self-Employed

Germany's official online tax portal. Mandatory first step for freelancers and business owners before issuing the first invoice.

WHAT TO DO

What is it and when to act?

ELSTER (Elektronische Steuererklärung) is the official portal for tax returns and business registration. For the self-employed, registering with the Finanzamt via ELSTER is the mandatory first step before issuing any invoice.

Step by step

  1. Register on elster.de (activation code arrives by post in about 2 weeks)
  2. Complete the Fragebogen zur steuerlichen Erfassung — state your activity, expected income, and VAT preference
  3. The Finanzamt issues your Steuernummer — it must appear on every invoice

Common mistakes

👨🏻‍💻
Max recommends:

I issued invoices before receiving my Steuernummer, writing 'registration in progress'. One client refused to pay until they saw the number. The Finanzamt took 6 weeks. Don't issue invoices before you're officially registered.

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Lea recommends:

I chose the standard VAT scheme (Regelbesteuerung) on €15,000 annual turnover. That meant quarterly VAT returns and extra bookkeeping headaches. For low turnover, the Kleinunternehmerregelung is far simpler.

FREQUENTLY ASKED QUESTIONS

What is the difference between Freiberufler and Gewerbetreibender? ▾

Freiberufler (§18 EStG) — liberal professions: doctors, lawyers, journalists, IT consultants, translators, architects. No Gewerbesteuer, no trade registration needed. Gewerbetreibende — all others: retail, manufacturing, services. Must register a Gewerbe and pay Gewerbesteuer. The Finanzamt makes the final call on your status.

Do I need to register on day one? ▾

Legally: within one month of starting. In practice, register immediately — the Finanzamt takes 4–8 weeks to issue a Steuernummer. Without it you cannot legally issue invoices with VAT.

What is the Kleinunternehmerregelung and is it worth using? ▾

If your annual turnover is below €22,000 (from 2024: €25,000), you can opt out of VAT (§19 UStG). Benefit: no quarterly VAT returns, simpler bookkeeping. Downside: you cannot reclaim input VAT. Good for B2C clients; less useful if you have high VAT-liable expenses.

OFFICIAL SOURCES