EÜR mistakes: How to avoid and fix errors in your German simplified income statement
Diana
Updated on:
Jun 24, 2025
For many freelancers and sole traders, the Einnahmen-Überschuss-Rechnung (EÜR) is the simplest route to a German tax return. Yet “simple” doesn’t mean fool-proof: one mismatched receipt, a late depreciation entry, or an overlooked loss carry-forward can cost hundreds of euros or trigger a stressful audit. In this guide, you’ll learn:
The 10 most expensive EÜR mistakes—and how to dodge them.
How to fix an EÜR after submission.
What the tax office actually checks when it reviews your simplified income statement.
Get an official EÜR template and learn how to automate the painful parts.
Understanding the EÜR: Who must file and why it matters for sole-traders & freelancers
What is the EÜR?
The Einnahmen-Überschuss-Rechnung is Germany’s cash-basis profit-and-loss statement. Instead of double-entry bookkeeping, you list money in vs. money out for the calendar year.
Who must (and who may) file an EÜR?
Business type | Obligation | Key thresholds for FY 2025 |
Freelancers (designers, consultants, IT contractors) | Mandatory—unless they voluntarily switch to full accrual accounting. | No revenue or profit cap. |
Tradespeople & merchants (Gewerbetreibende) | Allowed only if they stay below €800,000 annual revenue and €80,000 annual profit (§ 141 AO). | Exceed either limit → switch to double-entry books and a balance sheet. |
Partnerships (GbR, PartG) | Each partner files an EÜR share if the business meets the same limits. | Above the 800k/80k line → full accounts are required. |
✍️ If you are a Freiberufler (liberal profession), you can almost always use the EÜR—no matter how big you grow.
Why entrepreneurs should care
Time & cost savings – A one-page EÜR beats a 200-line balance sheet.
Cash-flow clarity – Because it’s cash-basis, profit mirrors bank-balance changes.
Lower accounting fees – Tax advisers typically charge 30–50 % less for EÜR clients.
Faster corrections – Spot a mistake? Submit an amended EÜR (Berichtigung) without re-structuring ledgers.
Audit-friendliness – Clear separation of income and expenses makes audits smoother.
The 10 most common EÜR mistakes & how to prevent them
1 · Mixing personal and business transactions
Using the same bank card for groceries and client payments makes reconciling your Einnahmen-Überschuss-Rechnung (EÜR) a guessing game. Undocumented private withdrawals inflate “expenses”, while genuine business costs vanish in the noise—both scenarios push your taxable profit the wrong way.
Fix: open a dedicated business account, run every customer payment and deductible cost through it, then transfer your owner’s draw as one labeled withdrawal each month.
2 · Missing or incomplete receipts
No receipt, no deduction. Faded thermal slips and forgotten cash payments can quickly add hundreds of euros to your profit.
Fix: scan or photograph every document the day you spend the money, and store it in the cloud.
💽 The tax office can accept digital copies.
3 · Forgetting legitimate business expenses
Subscriptions that renew quietly, the phone you use 70% for work, or the €6-per-day home-office allowance—small items that slip your mind but swell your taxable profit.
Fix: run a “subscription sweep” each quarter (filter your bank feed for recurring charges), log percentages for mixed private/business costs once, and reuse them all year. Use a shared calendar or time-tracking app to count home-office days to claim the allowance without scrambling on 31 July.
4 · Booking income in the wrong tax year
Under the cash-basis rule (Zufluss-Abfluss-Prinzip), revenue belongs to the day it hits your bank, not the invoice date. Recording a January 13th payment in December overstates last year’s profit and can trigger late-payment interest when the error surfaces.
5 · Incorrect depreciation for assets over 1.000 €
Anything you buy for more than 1.000 € net must be written off over its useful life—yet many sole traders expense the full amount in year one and lose the deduction later when the tax office corrects them.
Asset cost (net) | Correct treatment |
≤1.000 € | Expense immediately (GWG) |
>1.000 € | Capitalize and depreciate using the official AfA table (e.g., 3 years for smartphones) |
Fix: keep a simple fixed-asset register with purchase date, cost, and yearly depreciation.
6 · Invoices lacking mandatory details
An invoice missing the tax number, issue date, or a clear description of services is technically invalid. If the tax office spots one, they disallow the expense and any input VAT—instant profit inflation.
Fix: adopt a template that forces these seven fields: supplier name & address, recipient, tax number or VAT ID, invoice date, unique invoice number, description of goods/services, net amount + VAT + gross total. Double-check before clicking “Send.”
🪢 PDF or paper makes no difference—the legal requirements are identical.
7 · Losing the small-business VAT exemption
Under § 19 UStG, you enjoy freedom from charging VAT—but that privilege disappears when you show VAT on an invoice or reclaim input tax. Then you’re in the full VAT regime, retroactively.
Fix: add this footer to every invoice: “No VAT shown according to § 19 UStG (small-business scheme).”
8 · Misusing travel & meal allowances
Per-diem and mileage rates save time, yet many freelancers either forget to claim them or over-claim by copying figures from employed friends.
Fix:
Record departure and return times for each trip; claim the official meal allowance only when you’re away > 8 hours (currently €14) or overnight (€28 first/last day, €28 full day).
Use the standard €0.30 per kilometre rate for car travel unless you keep a full logbook for actual costs.
Overshooting these caps invites claw-backs; undershooting leaves money with the taxman.
9 · Failing to record or Carry forward losses properly
Early-stage freelancers often run at a loss, but forget to flag it in the EÜR. An unreported 4k € loss today can’t offset next year’s 10k € profit—and you’ll pay tax on the full 10k €.
Fix: Enter the negative result in line 84 of the EÜR and tick “Verlust nach § 10d EStG vortragen.” The tax office then carries the amount forward automatically; you only need to claim it once profits appear.
10 · Filing the EÜR late or in the wrong format
Submit after the 31 July deadline and a mandatory late-filing penalty kicks in—€25 per started month plus interest.
Fix: mark the deadline in your calendar or set a reminder 30 days prior. If you miss the cut-off, file as fast as possible and request penalty reduction, citing first-time oversight—success isn’t guaranteed, but asking costs nothing.
How to correct an EÜR after submission
Did you discover a mistake after you hit Send? German tax law encourages prompt self-corrections—if you act before the tax assessment (Einkommensteuerbescheid) becomes final.
When are corrections allowed?
Situation | Action window | What to file |
You notice an error before the assessment arrives | Anytime up to one month after submitting the return. | A Berichtigung (self-correction) inside ELSTER; no formal letter needed. |
Assessment received, still within the one-month objection period | 1 month from the date on the notice. | File an Einspruch (objection) and attach the corrected EÜR XML. |
Objection period has expired | Up to four years (standard statute of limitations). | A Rücknahme der Steuerfestsetzung under § 173 AO—granted only if the error is obvious. |
Tax office spots the error first | Depends on their request deadline. | Submit supporting documents; interest (0.15 % / month) runs from the original due date. |
Step-by-step correction inside ELSTER
Open the original return → click “Copy” (Kopie erstellen).
Edit the EÜR form: add the missing expense, fix income timing, adjust depreciation, etc.
Tick “Berichtigung” on the cover page (Erklärung zur Berichtigung).
Attach a short note in the free-text field:
Example: “Corrected revenue allocation to comply with cash-basis principle; see updated lines 14–18.”Validate & transmit; ELSTER issues a new transmission log (Übertragungsprotokoll).
Save both XML files (original + corrected) for your audit folder.
What if VAT is affected?
File an amended VAT return (Umsatzsteuer-Voranmeldung or annual USt-Jahreserklärung) for the same period.
Reference the correction reason: “Berichtigung nach § 17 UStG” for credit notes or cancelled invoices.
Pay (or reclaim) the VAT difference simultaneously.
Penalties, interest & how to avoid them
No penalty if the error looks accidental and you correct proactively.
Interest (0.15 % per month) starts only after the assessment becomes final—another reason to fix issues fast.
Negligence fines kick in when errors recur or look deliberate; keep notes that show how you arrived at the new figures.
Best practices to keep amendments rare
Reconcile bank feeds monthly, not yearly.
Maintain a fixed-asset register so depreciation is automatic.
Use a single repository for receipts and match each to a transaction.
A clean, timely amendment is routine for the tax office, so don’t panic if you spot a slip. Act quickly and document clearly. The correction will usually sail through without extra cost.
My EÜR is negative — consequences and smart next steps
A negative EÜR means your business expenses exceeded your cash-basis income during the calendar year, which is common in the first 12–24 months of freelancing when you’re investing in gear, marketing, or professional training. While the cash-flow pinch is real, a loss on paper can work in your favor at tax time.
Immediate consequences
No income tax for the year – A negative result reduces your taxable base to zero. Any advance payments (Vorauszahlungen) you made are refunded.
Loss carry-forward (Verlustvortrag) – The tax office automatically stores the entire shortfall and offsets future profits under § 10d EStG.
Lower trade-tax prepayments - If you operate a Gewerbe, notify the municipality; they’ll usually reduce your Gewerbesteuer to the minimum.
Closer scrutiny – A single loss year is routine, but consecutive negatives can trigger questions about “objective intent to make a profit” (Liebhaberei). Keep documentation proving your commercial motive—marketing plans, client pipelines, pricing research.
Next steps
Claim the loss correctly
Enter the negative amount in line 84 of the EÜR form and tick “Verlust nach § 10d EStG vortragen.”
Double-check that all receipts are present; the worst outcome is an audit discovering that private costs have inflated the loss.
Adjust future prepayments
Use ELSTER’s Antrag auf Anpassung der Vorauszahlungen to slash next year’s income-tax instalments.
Provide a brief explanation: “Expected profit < €X due to prior-year loss carry-forward.”
Monitor cash vs. tax
A paper loss doesn’t create liquidity—plan how you’ll fund living costs until revenue recovers.
Review pricing and client acquisition metrics; the goal is profit, not endless loss offsets.
Leverage VAT if you’re not under § 19
A loss year often means high input VAT on purchases. File timely VAT returns to reclaim the cash and ease funding pressure.
Set a profitability deadline
The tax office typically accepts two or three start-up loss years.
🚩 A negative EÜR is not a red flag by itself—it’s a tax asset. Capture it accurately now so future profits aren’t taxed twice.
How the German tax office audits your EÜR (what they check & why)
Contrary to myth, most EÜR reviews start with software, not a man with a briefcase. ELSTER runs automated plausibility tests moments after you click Send; only if red flags pop up does a human auditor step in.
How returns are selected
Trigger | What it signals | Likelihood of follow-up |
Frequent amendments or late filings | Potential record-keeping weakness | High |
Large loss carry-forward vs. prior revenue | Risk of inflated deductions | Medium |
Cash-heavy trade (e.g., coaching, events) | Hidden turnover possible | Medium |
Unusual ratios (e.g., travel > 20 % of revenue) | Expense mis-classification | Medium |
Random spot checks | Statistical sampling | Low |
🧼 One clean, on-time EÜR rarely triggers an audit; repeated corrections almost always do.
Desk review vs. field audit
Schriftliche Nachfrage (desk inquiry)
You’ll receive a letter or ELSTER message asking for specific invoices, bank statements, or an explanation.Provide scans within the stated deadline (usually 14 days).
The case often closes here if figures reconcile.
Betriebsprüfung (field audit)
An auditor visits your office—or home office—with written notice.They can inspect digital books, hard drives, and original receipts on-site.
Expect questions on private use splits (car, phone), depreciation schedules, and unexplained deposits.
Top checkpoints and the evidence they want
Checkpoint | Required proof | Common pitfall |
Completeness of revenue | Bank statements, PayPal exports, POS reports | Personal account used for business credits |
Validity of expenses | Legal invoices with tax number & description | Missing or incomplete receipts |
Depreciation (AfA) | Fixed-asset register, AfA calculations | Asset over €800 expensed in one go |
Private withdrawals & deposits | Owner draw schedule, cash book | Deposits labelled “Equity” lack source docs |
VAT consistency | Match VAT returns to EÜR totals | Small-business (§ 19) shows VAT on invoices |
How to sail through an audit
Single source of truth – One business bank account and a cloud receipt folder keep hunting to a minimum.
Monthly reconciliations – Tie every bank line to a receipt before month-end; December is too late.
Fixed-asset register – Update when you buy, not when the auditor asks.
Document mixed-use percentages – Write down how you arrived at 70 % business for your phone bill; consistency trumps precision.
Keep records for 10 years – Digital copies are legally valid if unalterable (PDF-A, cloud archive, or GoBD-compliant software).
What happens after the audit
No adjustments – You receive a closing letter (Schlussbesprechung) and keep any loss carry-forward intact.
Minor adjustments – A revised tax assessment shows the extra tax plus interest (0.15 % per month). Pay within the deadline to avoid late fees.
Serious findings – The auditor may impose penalties for negligence and expand the review to earlier years.
Prepare once and store evidence systematically - even a field audit becomes a routine paperwork exercise rather than a business nightmare.
Get the official EÜR template for free
Want to see what the official form in 2025 looks like? Drop your email below and we’ll send you ready-to-use EÜR templates (PDF + Excel) straight to your inbox.
How Norman helps you avoid these EÜR mistakes
Norman automates categorization and receipt matching, seamlessly linking your transactions with uploaded documents. Each incoming transaction is automatically classified, such as “software subscription’ or “client revenue’—using EÜR categories, and then matched to its respective PDF or photo receipt. This process ensures you never forget a SaaS invoice, mix personal charges, or lose track of important documents.
Additionally, Norman includes a built-in depreciation tracker. For any purchase exceeding €1,000 net, Norman will assign the appropriate AfA lifetime based on the official table. The tool automatically posts the annual depreciation to your EÜR, helps prevent accidental full write-offs, and flags any assets you might have overlooked. This feature simplifies asset management and ensures compliance.
When your books are complete, Norman enables direct submission of your EÜR along with VAT, income tax, and trade tax returns. All relevant reports can be sent directly to the authorities with a single click, eliminating the need for an ELSTER certificate. This streamlined process reduces deadlines, prevents errors caused by incorrect formats or duplicate entries, and allows you to track submission statuses through a centralized dashboard.
EÜR mistakes FAQ
What happens if I make a mistake on my German tax return?
File a Berichtigung (self-correction) in ELSTER before the assessment becomes final. Pay any shortfall promptly and attach a short explanation—the tax office usually waives penalties when you correct errors proactively.
Can I amend an EÜR after submission?
Yes. Inside ELSTER, open the original return, click “Copy,” tick Berichtigung, edit the figures, and resubmit. If you’ve already received the assessment, lodge an Einspruch within one month and attach the corrected EÜR XML.
How does the tax office review my EÜR?
ELSTER runs instant plausibility checks, then auditors compare bank statements, invoices, and your fixed-asset register to your totals. Red flags include frequent amendments, large loss carry-forwards, or unusual expense-to-revenue ratios.
What if my EÜR shows a loss?
A negative result triggers no tax for that year and automatically becomes a loss carry-forward (Verlustvortrag) that offsets future profits. Consecutive loss years may prompt the tax office to request proof of your profit motive, so keep your business plan handy.
How do I fix errors in withdrawals (Entnahmen) or deposits (Einlagen) in ELSTER?
Locate the “Private withdrawals/deposits” lines in the EÜR form, adjust the amounts, and submit a Berichtigung. Add a note such as “Corrected owner’s draw classification” so the auditor sees it was a coding—not cash-flow—error.
When must I switch from the EÜR to double-entry bookkeeping?
If annual revenue exceeds € 800,000 or profit tops € 80,000 (FY 2025 thresholds), you must keep full accounts and file a balance sheet the following year. Until then, you can continue using the EÜR.
Conclusion
The Einnahmen-Überschuss-Rechnung is meant to simplify bookkeeping for Germany’s freelancers and solo-entrepreneurs—yet small slips can snowball into higher taxes, audit stress, and lost growth capital. By:
Separating business and personal money flow,
Capturing every receipt the moment you spend,
Claiming all legitimate costs (home-office, SaaS, phone),
Applying cash-basis timing and correct depreciation, and
Submitting on time in the proper format eliminates 90 % of the errors that trip up first-time filers.
When you’re ready to automate the heavy lifting, Norman can categorize transactions, track depreciation, and file every return in one click. This frees your focus for pitching clients, shipping projects, and scaling revenue.
Make business effortless with Norman.