In Germany, the cost of a tax consultant is often a decisive factor that concerns many entrepreneurs and self-employed people. This article provides you with a comprehensive overview of when and why a tax advisor is worthwhile, how to find the right expert and what costs you can expect. We also provide tips on how you can claim the costs against tax.
Do I even need a tax consultant?
Whether you need a tax advisor depends on various factors. It can quickly become complicated for entrepreneurs and the self-employed, as in addition to income tax, trade tax, sales tax and possibly corporation tax also play a role. A tax advisor can not only help with the correct payment of taxes, but also with tax optimization. A tax consultant can also be worthwhile for employees, especially if they have extraordinary income or complicated circumstances.
Self-employed better with a tax consultant
A tax consultant is almost indispensable for the self-employed. In addition to the annual tax returns, self-employed people often have to submit regular advance VAT returns, trade tax returns and a profit calculation. A tax consultant ensures that these obligations are fulfilled properly and on time, which saves you time and protects you from possible penalties.
A tax consultant can be a reliable point of contact for the following tax and financial issues and, above all, ensure that you are legally compliant and don’t have to expect any hassle from the tax office:
- Annual financial statements
- Revenue-surplus accounting
- Payroll accounting
- Financial accounting
- Liquidity planning
- Business management evaluations
- Advance sales tax return
- Annual sales tax return
- Corporate income tax return
Finding the right tax advisor: How to succeed
In some cases, there is no getting around hiring a tax consultant with real expert knowledge. Expert knowledge is an important keyword here: many tax consultants specialize in one or more areas. It can therefore make sense to look for the tax consultant who is best suited to your company. Pharmacists and doctors should turn to tax consultants who have been working in this sector for some time. While cultural professionals can get the best out of their tax return by engaging a tax advisor who specializes in this sector.
Finding the right tax advisor: How to succeed
Once you have decided to hire a tax consultant, the question arises: How do you find the right expert? A trusting working relationship is just as important as the tax consultant’s professional expertise.
How do I find the right tax consultant?
A good tax consultant should not only be professionally experienced, but should also be a good fit for your individual needs. Clarify in advance which services you require and whether the tax consultant has experience in your sector. Many tax consultants specialize in certain industries or client groups, which can be an advantage for you.
Options for finding a tax advisor
There are various ways to find the right tax consultant. A personal recommendation from colleagues or business partners is often the best way. You can also use online directories and review portals to make a preliminary selection. Many tax advisors offer a free initial consultation in which you can find out whether the collaboration will work.
Further possibilities:
- Acquaintances: You can ask friends and acquaintances to recommend tax consultants and make a non-binding inquiry with the respective firm.
- Network: If you are looking for a tax consultant who specializes in the relevant sector, you can ask around in your professional network. With a bit of luck, you may find a suitable tax consultant with specialist knowledge for your own business sector.
- Internet: Good old-fashioned online research can also help. You can use search engines to find tax consultants in your area. You can get a first impression by clicking on the tax consultant’s website.
- Professional association: The Deutsches Steuerberaterinstitut e.V. and the Bundessteuerberaterkammer K.d.ö.R have set up search masks on their websites which interested parties can use to find the right tax consultant.
Digitalization of tax consulting
Digitalization has also found its way into tax consulting and offers both entrepreneurs and tax consultants many advantages. By using modern software and digital tools, processes such as bookkeeping and tax returns can be made significantly more efficient. Digital documents and automated evaluations save time and reduce the error rate.
Many tax advisors now offer cloud-based platforms that clients can use to monitor their finances in real time and upload documents securely. This facilitates collaboration and ensures faster, more accurate results.
Tax consultant costs: What do I have to pay for a tax consultant?
But now to the actual question of what costs you should expect when you hire a tax consultant. The costs for a tax consultant vary depending on the work involved and the scope of the services. Tax consultants are bound by the so-called Tax Consultant Remuneration Ordinance (StBVV), which regulates the fees for various activities. Nevertheless, there is room for maneuver, as the fees are usually set within a range. It is therefore advisable to discuss the costs in advance and agree a clear framework.
The Tax Consultant Remuneration Ordinance
The Tax Consultant Remuneration Ordinance regulates the fees for tax consultants in Germany. The amount of the fees is often based on the value of the matter, for example the amount of taxable income or turnover. There are fixed rates for certain activities, such as bookkeeping or the preparation of an income tax return. In some cases, tax consultants can also agree a flat fee or a time-based fee.
However, it is often not enough just to look at the remuneration table to know what costs are due for the tax return. The table operates with the so-called “tenth”. 1/10 is the lower end of the range, while 10/10 is the top end and therefore the highest fees. Which scale the tax consultant chooses in your case naturally also depends on the amount of work involved. If you have prepared your tax return or annual VAT return well in advance and your bookkeeping is complete, the tax consultant often has less work to do. Conversely, this means lower costs for you.
However, the work that the tax advisor has to do when preparing the respective declaration is not the only factor that affects the costs. The so-called object value of the declaration also plays a role.
Remuneration Ordinance for Tax Consultants, Tax Agents and Tax Consultancy Companies
| Object value in Euro | Full fee (10/10) in Euro |
| 300 | 29 |
| 600 | 53 |
| 900 | 76 |
| 1.200 | 76 |
| 1.500 | 123 |
| 2.000 | 157 |
| 2.500 | 189 |
| 3.000 | 222 |
| 3.500 | 255 |
| 4.000 | 288 |
| 4.500 | 321 |
| 5.000 | 354 |
| 6.000 | 398 |
| 7.000 | 441 |
| 8.000 | 485 |
| 9.000 | 528 |
| 10.000 | 571 |
| 13.000 | 618 |
| 16.000 | 665 |
| 19.000 | 712 |
| 22.000 | 759 |
| 25.000 | 806 |
| 30.000 | 892 |
| 35.000 | 977 |
| 40.000 | 1.061 |
| 45.000 | 1.146 |
| 50.000 | 1.230 |
| 65.000 | 1.320 |
| 80.000 | 1.411 |
(Source: https://www.gesetze-im-internet.de/stbgebv/anlage_1.html)
But what does this mean for you in concrete terms? If the tax return has a value of 50,000 euros, the tax consultant may charge a maximum fee of 1,230 euros. This is the maximum fee in this case. As a rule, however, tax consultants often base their fees on an average value. This means that the costs for the service are lower. However, it cannot be ruled out that the tax consultant will apply the maximum costs. Clients are therefore certainly well advised to obtain an estimate in advance of how much they will ultimately have to pay for the service in question.
The individual services at a glance
The services of a tax consultant go far beyond simply filling out tax forms. The most common services include bookkeeping, the preparation of annual financial statements, advice on tax optimization, representation before tax authorities and support during tax audits. Some tax consultants also offer business management advice, which can be of great benefit to many companies.
Here are a few examples:
Costs for financial accounting
Entrepreneurs have the choice of how extensive the bookkeeping that the tax consultant should take over should be. However, this naturally has a major influence on the costs for the tax consultant. The fees for the individual services in the area of financial accounting are regulated in Table C of the Tax Remuneration Ordinance.
Companies should roughly expect the following costs:
1. Complete accounting: 2/10 up to 12/10 the costs regulated in Table C.
2. Account assignment of documents: 1/10 up to 6/10.
3. Accounting in accordance with the company’s accounting records: 1/20 up to 10/20.
4. Accounting according to documents already assigned to an account: 1/10 up to 6/10.
5. Monitoring of accounting: 1/10 up to 6/10.
Tax consultant costs for payroll accounting
Payroll accounting is often billed at a flat rate and negotiated individually. If special cases arise, such as employees joining or leaving the company, these are calculated separately.
Costs for the annual financial statements
How and in what form the annual financial statements are to be prepared also has an influence on the tax consultant costs. An income statement (EÜR) is cheaper than annual financial statements in the form of a balance sheet. The simple reason for this is that an income statement is less time-consuming than a balance sheet. If you would like to find out what costs you can expect to pay for a tax consultant, you can find the relevant information in Table B of the Remuneration Ordinance for Tax Consultants, Tax Agents and Tax Consultancy Companies.
In der Regel gliedern sich die Kosten so:
1. INCOME STATEMENT: 5/10 up to 20/10.
2. Written explanatory report: 2/10 up to 12/10.
3. Balance sheet including income statement: 10/10 up to 40/10.
4. Appendix: 2/10 up to 12/10.
5. Prepare tax balance sheet (from underlying commercial balance sheet): 5/10 up to 12/10.
6. Tax result (from underlying commercial balance sheet): 2/10 up to 10/10.
Tax consultant costs for tax return
Companies usually have to submit not just one, but several tax returns. The tax consultant can also offer this as a service. The fee framework for this service can be found in Table A of the Remuneration Ordinance for Tax Consultants, Tax Agents and Tax Consultancy Companies.
Folgende Kosten kommen dabei auf Sie zu:
1. Value added tax return: 1/10 up to 8/10.
2. advance VAT return: 1/10 up to 6/10.
3. Trade tax return: 1/10 up to 6/10.
4. Corporate income tax return: 2/10 up to 8/10.
Tip: Deduct costs for the tax advisor
A major advantage for entrepreneurs and the self-employed is that the costs for the tax consultant can be claimed as business expenses. This means that you can deduct the fees for tax advice and the preparation of your tax return from your tax bill. Under certain conditions, employees can also declare tax consultant costs in their tax return, for example as income-related expenses.
