When incorporating in Germany, you must register your company with the tax office and declare your tax obligations. Completing the tax registration form is a key part of this process because you will use this form for tax registration, and it has major implications for future tax preparation.

This article explains the tax registration form and shows you how to apply for and correctly complete your form. We also answer frequently asked questions about deadlines, consequences of late filing, and processing times.

What’s in this article?

• What is the tax registration form?
  
• How do I apply for a tax registration form?
  
• What should I do before completing my form?
  
• How do I complete my form correctly?
  
• FAQs about the tax registration form
  

What is the tax registration form?

The tax registration form (Fragebogen zur steuerlichen Erfassung)—also known as a “business registration questionnaire” (Betriebseröffnungsbogen)—is a form that every German company is required to complete and file with the relevant tax office prior to engaging in business activities. The form is used to register with the tax office for tax purposes, and it ensures the company is properly entered into the tax system.

In Germany, the following types of businesses are obligated to complete the tax registration form:

• Sole proprietorships: This includes freelance professionals, small businesses, and registered merchants.

• Partnerships: Partnerships in Germany can include general partnerships (OHGs) and limited partnerships (KGs).

• Corporations: These include limited liability companies (GmbHs) and stock corporations (AGs).

• Corporations formed according to foreign laws: This includes incorporated companies (i.e., those designated with “Inc.”) and partnerships.

The tax registration form collects key information on the company, such as its business activity, legal formation, and expected turnover. The tax office uses this information to determine how your business should be taxed (i.e., which taxes you have to pay and how much you need to pay in estimated taxes). Also, the tax office won’t issue your business with a tax identification number (tax ID) until you’ve filed your tax registration form. You need a tax ID for activities such as communicating with the financial authorities and invoicing customers.

A tax ID is mandatory for an invoice to be considered correct, according to the German Value-Added Tax (VAT) Act (UStG). Stripe Invoicing can help you simplify invoicing and automatically add tax IDs and other mandatory information to your invoices—saving you time, cutting your error rate, and ensuring that your invoices are always fully compliant.

How do I apply for a tax registration form?

You can obtain the tax registration form in various ways, depending on whether you are registering a business or are self-employed:

Business or Commercial Register registration

If you are registering a business or registering your business with the Commercial Register, the tax office will send you a tax registration form automatically. This step happens as soon as the relevant agency has processed your registration. In this case, there is no need to actively obtain a form yourself.

Freelance professions

If you are working on a freelance basis, you don’t need to register a business or register with the Commercial Register. Therefore, you will have to obtain a tax registration form yourself. Freelancers must apply for this form from the tax office. You can do this over the phone or by downloading the form from the Federal Ministry of Finance website. You can also complete the tax registration form digitally using Germany’s website for submitting tax returns, ELSTER.

What should I do before completing my form?

To ensure you avoid common mistakes, here are a few important steps to take before you start filling in your tax registration form:

Open a business account and provide your bank details

The tax registration form requires you to provide the details of a bank account that can be used to process tax payments and rebates. You should not use a private account. Instead, open a business account with a bank.

There are several reasons why you shouldn’t use a private account for your business. First, corporations are required by law to open a business account. In addition, banks’ terms and conditions typically prohibit the use of private checking accounts for business purposes. Lastly, a joint account can lead to personal and company finances mixing. This can make bookkeeping harder, which can lead to issues if you’re audited.

Provide a realistic estimate of your profits

The form requires you to indicate your forecast profit and revenue for the first and second financial years. The tax office uses this information to determine how much you owe in estimated taxes that are usually due quarterly.

If your calculations are too optimistic, you could declare high expected profits. Then, you will have to pay estimated taxes accordingly, even if your business does not perform as anticipated. Significantly underestimating your profits is equally risky, as you will end up owing a lot in arrears. The tax office will also demand an additional advance payment based on this forecast that is due immediately. Therefore, it is important to provide a realistic estimate.

You can then review this estimate regularly and make adjustments as necessary. A tax advisor can help you ensure your estimated taxes remain reflective of your business.

Consider the small business exemption

The form allows you to waive the small business exemption under Section 19 of the UStG. This regulation exempts businesses with low turnover from collecting VAT.

However, if you overestimate your turnover at the beginning—or if you opt out of using the small business exemption too soon—you cannot claim it again until five years after incorporation. For that reason, you should think carefully about whether it might make sense for your business to claim the small business exemption. In a lot of cases, this special status is useful for founders, primarily because it reduces paperwork.

Opt for cash basis accounting

Another important point to think about when completing your tax registration form is how to calculate your tax. You can choose accrual-based or cash-based taxation.

With accrual taxation, you must pay VAT for invoices during the preliminary tax period in which you issued the invoices. This happens regardless of whether you have received payment. This can be particularly problematic for young companies because they might have to make advance payments, meaning that they pay VAT even though they have not yet received payment from their customers.

On the other hand, cash basis taxpayers only have to remit VAT once customers settle their invoices. However, not all companies are allowed to use cash basis accounting, so it’s important to check whether your company can.

How do I complete my form correctly?

You can complete your tax registration form in just a few steps via ELSTER:

Sign up with ELSTER

Start by creating an account with ELSTER. There are several different ways to sign up. You can use a certificate file or your ID card with a reader and ID app or purchase a security stick. Another option is a signature card, which is particularly suitable for tax advisors. Registration times vary depending on which method you select.

Choose the right form

Once you’ve logged in to ELSTER, navigate to the Forms Center. Then, go to Forms & Services and click on the “Tax registration form” tab. Different versions are available depending on the legal formation of your company. Make sure you choose the right version, as the requirements vary according to the structure of your business. You can choose forms for sole proprietorships, partnerships, corporations, and companies from overseas.

Complete the form

Next, fill in the form. The form is broken down into multiple sections. Start by providing basic information about your company. This includes the company name, its legal formation, and the business activity type. You also need to state the date of incorporation and foreseeable income.

You might need to provide additional information, depending on the type of company. Sole proprietorships, for example, will be asked to provide information on income and VAT liability. Corporations have to answer more specific questions on corporation and trade tax and their partners or members.

Make sure you fill in all fields correctly and in full, as incomplete or incorrect information can result in delays. Use ELSTER’s help function if you have questions. Once you’ve provided the necessary information, submit your form.

FAQs about the tax registration form

Below, you’ll find answers to some frequently asked questions about the tax registration form:

Do I need professional support to complete the tax registration form?

You won’t typically need to engage a tax advisor to complete the tax registration form. The questions are largely self-explanatory, and ELSTER offers tips and explanations. However, if you are unsure or have more complex questions regarding tax issues, it can be a good idea to seek professional support. A tax advisor can help you avoid errors and make sure you provide the necessary information correctly.

What is the deadline for completing the tax registration form?

According to Section 138 of the German Fiscal Code (Abgabenordnung, or AO), you are required to complete and file your tax registration form within four weeks of starting commercial operations.

What happens if I file the form too late?

There are a few different things that might happen if you fail to file your tax registration form before the deadline. The first is a late fee, according to Section 240 of the AO. This fee increases the longer you take to pay it. In the event of significant filing delays, the tax office will estimate your tax for you. This estimate is often unfavorable, as it is based on assumptions that might not reflect your actual revenue. In very serious cases, the tax office can fine you or initiate legal proceedings.

When will I receive my tax ID?

Once you have completed and filed your tax registration form, the tax office will review it. You will receive a tax ID for your company when this review is complete. The processing time varies between a few days and several weeks, depending on which tax office is conducting the review and how much documentation you have submitted.