Are you self-employed, working as a freelancer, or running a small business? Then you may have already heard of the EÜR. In this article, you’ll learn what the Income-Expense Statement is, who can use it, and how it works.
- The EÜR is a simple method for calculating profits for the tax office.
- It applies to self-employed individuals, freelancers, and small business owners not required to use double-entry bookkeeping.
- Profit is calculated as: income minus expenses.
🚀 Your Guide
- What is the EÜR?
- Who can use the EÜR?
- How does the EÜR work?
- What counts as income and expenses?
- What happens in the case of profit or loss?
What is the EÜR?
The Income-Expense Statement (Einnahmen-Überschuss-Rechnung or EÜR) is a simplified method to calculate the profit or loss of your business for tax purposes. Unlike double-entry bookkeeping, you don’t need to prepare a balance sheet – you simply compare your income and expenses.
This method is often used by sole proprietors because it is time- and cost-efficient and does not require prior accounting knowledge.
Who can use the EÜR?
The EÜR can be used by anyone who is not required to use double-entry bookkeeping. This includes:
- Self-employed individuals
- Freelancers (e.g. doctors, journalists, designers)
- Small business owners
- Tradespeople with an annual turnover of no more than €600,000 or an annual profit of no more than €60,000
ℹ️ Tip: Take a look here to see who can use Taxfix.
How does the EÜR work?
The basic principle is simple:
📌 Income – Expenses = Profit (or Loss)
You enter all business income and expenses in a simple overview. The difference between them gives you your taxable profit.
This method is based on the cash basis principle. That means: income and expenses are only recorded when the money actually changes hands – i.e., when payment is made, not when the invoice is issued.
What counts as income and expenses?
Income:
- All incoming payments, such as transfers, cash payments, or client fees
- Reimbursements, e.g., from insurance companies
Expenses:
- Rent for business premises
- Material and goods costs
- Insurance, contributions
- Telephone and internet
- Travel costs, meals, training courses
💡 Important: Only business-related expenses can be claimed. Private expenses are not deductible.
What happens in the case of profit or loss?
- Profit: If your income exceeds your expenses, you will have to pay income tax on the surplus.
- Loss: If your expenses exceed your income, you incur a loss. This can potentially be offset against other income or carried forward to future years.
📌 You must submit the EÜR using the “Anlage EÜR” (EÜR form) along with your tax return to the tax office. If you are subject to VAT, you must also submit the VAT return.
Not sure whether you’re allowed to use the EÜR or how to properly document your income and expenses? Our support team is happy to help!
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