TL;DR: Recurring revenue or expenses from December 22 to January 10 can be attributed to the next or previous year, respectively, if they are economically tied to it.
The year-end brings significant tax headaches for freelancers and self-employed in Germany. A critical but frequently overlooked element is the "10-day rule" for VAT advance payments (Umsatzsteuer-Vorauszahlungen) and income statements (EÜR). Understanding this rule can significantly influence profit calculations and reduce your tax burden.
What is the 10-Day Rule?
The 10-day rule (§ 11 EStG) allows regularly recurring income and expenses paid or received between December 22 and January 10 to be counted in the fiscal year to which they economically belong. This is particularly relevant for cash-based accounting (Zufluss-Abfluss-Prinzip), which is used by all freelancers and Kleingewerbe.
Examples of Regularly Recurring Payments:
Expenses:
VAT advance payments (Umsatzsteuer-Vorauszahlungen)
Office rent or coworking spaces
Professional liability insurance, health insurance premiums
Contributions to Artists' Social Insurance Fund (KSK)
Leasing payments (e.g., office equipment)
Recurring software subscriptions (Adobe, accounting tools)
Income:
Regular license fees
Rental income (office spaces)
Client subscription fees
⚠️ Important: One-off payments (e.g., buying a laptop) do not qualify.
Conditions for Applying the 10-Day Rule:
Regularity: Payments must occur regularly (monthly, quarterly, annually).
Economic belonging: Clearly associated with the previous year.
Actual Payment Date: Money must physically leave or enter your account between December 22 and January 10.
Recent Court Rulings on VAT Payments
Recent German Federal Fiscal Court (BFH) rulings strictly apply the 10-day rule to VAT advance payments. Payments made after January 10, even due to weekend delays, do not count for the previous year.
Important Exception:
Payments via SEPA direct debit authorized by the tax office count if initiated by January 10, regardless of the debit date.
Practical Examples:
VAT Payment: Due January 10, paid and booked on the same day ✅. Paid on January 11 ❌.
Coworking Rent: Scheduled January 10 (Sunday), bank booked January 11 ❌.
Annual Insurance Premium: Paid January 8, qualifies for the previous year ✅.
Advanced Tip: Prepaying Expenses
Expenses for the following year paid before December 22 (e.g., next year's insurance premium) can also be claimed immediately in the current tax year, offering additional flexibility.
Common Mistakes to Avoid:
Payments scheduled but not executed by January 10.
Standing orders booked late due to weekends or holidays.
Incorrectly classifying one-time expenses as recurring.
Ignoring actual booking dates of automated payments.
Conclusion
Following Germany's 10-day rule can greatly improve your tax situation and prevent unexpected tax surprises.
Frequently Asked Questions (FAQ):
Does the rule apply to one-time purchases like laptops? No, only recurring payments.
Was the payment made on January 10 but booked on January 11? Doesn't count for the previous year.
Weekend deadline? SEPA direct debit by the tax office is still valid; manual transfers must clear by January 10.
Can the rule be applied every year? Yes, annually, if all conditions are met.