The Tax Mystery in Germany - Part 2

Six months ago, I wrote an article about taxes in Germany and my first experience as a business owner who starts dealing with them for the first time. I had a number of people reach out to learn more about my experience and discuss their specific situation.

?Now, at the end of the first financial year, here I am with brand new experiences to share with you!?

The expenses: The last financial year was smooth but ended with an unexpected invoice from my tax consultant. At the beginning, I was offered the possibility of handing over my bookkeeping along with tax clearance, but I didn't, as I was thinking I could do it on my own and also, this way, make some savings. While my consultant mentioned that I would be charged each time they provided me with constancy, as a surprise, I found that some questions and clarifications that I needed cost me a consultancy fee, almost the same amount as hiring them to do my bookkeeping for the entire year. So tip number one: if you are offered the same options, definitely go for the bookkeeping + tax clearance. It saves a lot of time and energy, plus you don’t worry about anything, so basically one less headache for the same price as asking sometimes questions to make sure you are doing the bookkeeping right.

The coordination: The coordination between you and your tax consultant is very important. The more you communicate, the better it goes. It's like the beginning of a relationship, and the more you communicate and exchange, the better you know if you are on the right path towards the right bookkeeping and finally good tax clearance.

Dealing with Finanzamt (Finance Authority): We all know opening letters from Finanzamt is not an easy thing. It always comes with stress and the fear of unexpected issues. I learned the last time I had an appointment with my tax consultant that they can receive the letters and act accordingly and at the right time while only sharing with you through email what was needed and what action they will take in that regard. I found it good and, of course, less stressful! Recently, I was asked by Fiananzamt to fill out a new form, which was very long and hard to do. While I was filling it out, I faced challenges, so I reached out to my tax consultant to help me with it. I surprisingly found that I didn't have to fill out that form, and they confirmed it with Finanzamt. It is always good that a professional and experienced person talks to them on your behalf.