If you're a business owner or self-employed in Germany, calculating your preliminary VAT return, or "Umsatzsteuervoranmeldung" (UStVA), is critical to staying compliant with tax regulations. This process can seem daunting, especially for monthly filers and potential penalties for late filing. In this article, we'll break down everything you need to know about how to calculate your Umsatzsteuervoranmeldung accurately, including step-by-step instructions, updated 2025 regulations, and practical tips to streamline the process.
What is the Umsatzsteuervoranmeldung?
The Umsatzsteuervoranmeldung is a preliminary VAT (Value Added Tax) return that most German businesses must submit to their local tax office ("Finanzamt") either monthly or quarterly. It’s essentially a pre-payment of the VAT you owe, designed to spread your tax liability across the year rather than facing a large lump-sum payment during your annual tax return. By submitting this declaration, you report the VAT you’ve collected from customers (output tax) and the VAT you’ve paid on business expenses (input tax), with the difference determining your payment or refund.
Who needs to calculate and submit a Umsatzsteuervoranmeldung?
You’re required to submit a Umsatzsteuervoranmeldung if you’re a VAT-registered business in Germany, including freelancers and self-employed individuals, unless you qualify as a Kleinunternehmer (small business owner) under the Kleinunternehmerregelung (§ 19 UStG). To be exempt as a small business owner, your revenue must meet these criteria:
Previous year’s turnover: Less than €25,000.
Current year’s projected turnover: Not exceeding €100,000 (updated for 2025).
Additionally, the frequency of your submissions depends on your VAT liability from the previous year:
Over 9.000 €: Monthly submissions.
2.000–9.000 €: Quarterly submissions.
Under 2.000 €: Annual VAT return only (optional pre-payments).
Special cases, like EU transactions, may require additional calculations—more on that later.
How to calculate your Umsatzsteuervoranmeldung: Step-by-step guide
Calculating your preliminary VAT return involves determining the difference between the VAT you’ve charged (Umsatzsteuer) and the VAT you’ve paid (Vorsteuer). Here’s a detailed breakdown:
Step 1: Gather your financial data
To start, collect all relevant invoices and receipts for the reporting period (month or quarter). You’ll need:
Sales invoices: Revenue from goods or services sold, including VAT charged at 19% (regular rate) or 7% (reduced rate).
Expense invoices: Business purchases where you’ve paid VAT (e.g., supplies, equipment, or services).
Ensure your bookkeeping is up-to-date—modern accounting software can significantly simplify this step.
Step 2: Calculate your output VAT (Umsatzsteuer)
Output VAT is the tax you’ve collected from customers. For each sale:
Identify the net amount (excluding VAT).
Apply the appropriate VAT rate (19% or 7%).
Add the VAT to get the gross amount (what the customer pays).
Example:
You sell a product for €100 net.
At 19% VAT: €100 × 0.19 = €19 VAT.
Gross amount: €100 + €19 = €119.
At 7% VAT: €100 × 0.07 = €7 VAT.
Gross amount: €100 + €7 = €107.
Sum all VAT amounts from your sales invoices for the period.
Step 3: Calculate your input VAT (Vorsteuer)
Input VAT is the tax you’ve paid on business expenses. For each purchase:
Check the invoice for the VAT amount charged (it must be explicitly stated).
Record only the VAT portion, not the total cost.
Example:
You buy supplies for €238 gross (including 19% VAT).
VAT amount: €238 ÷ 1.19 = €200 net; €238 - €200 = €38 VAT.
Input VAT = €38.
Total all VAT amounts from your expense invoices.
Step 4: Compute the VAT liability
Subtract your total input VAT from your total output VAT:
Formula: Output VAT - Input VAT = VAT Liability.
If the result is positive, you owe this amount to the tax office.
If negative, you’re eligible for a refund.
Example Calculation:
Output VAT (sales): €2,850.
Input VAT (expenses): €800.
VAT Liability: €2,850 - €800 = €2,050 (you pay this).
Step 5: Account for special cases
EU transactions: For intra-community/intra-EU transactions, additional VAT rules, like Reverse Charge, apply. These transactions are recorded in specific lines in your UStVA.
Ist-Versteuerung: If you opt for cash-based accounting (revenue under €800,000), calculate VAT based on payments received, not invoices issued.
Dauerfristverlängerung: If approved, adjust your payment deadlines and include a 1/11th Sondervorauszahlung (special advance payment) for monthly filers.
Step 6: Submit via ELSTER or tax software
Log in to the ELSTER portal or USt-VA supporting software like Norman. If you file through Norman, everything is already calculated. You need only to review the final declaration and click "Submit".
If you file through Elster:
Net sales (excluding VAT) under the correct tax rate codes (e.g., 81 for 19%).
Input VAT amounts (e.g., code 66).
Verify totals and submit by the 10th of the following month (or later with a Dauerfristverlängerung).
Practical Example: Calculating your UStVA
Let’s say you run an Etsy shop in Q1 2025:
Sales: 15.000 € net + 2.850 € VAT (19%) = 17.850 € gross.
Expenses: 4.200 € gross (incl. 800 € VAT at 19%).
Calculation: 2.850 € (output VAT) - 800 € (input VAT) = 2.050 € VAT liability.
Submission: Due by April 10, 2025 (quarterly filer), payable via bank transfer or direct debit.
With Norman, this process is automated: Upload your invoices, let Norman calculate and file, and review the submission—all in a few minutes.
How Norman can automate bookkeeping and Umsatzsteuervoranmeldung filing
For business owners looking to save time and reduce errors, automating your bookkeeping and Umsatzsteuervoranmeldung filing is a game-changer. Norman, an advanced AI-powered assistant, offers a seamless solution to streamline these processes. Here’s how Norman can help:
Automated data collection
Norman can automatically scan and categorize your sales and expense invoices. By uploading digital copies (PDFs, images, or text files), Norman extracts key details like net amounts, VAT rates, and totals, eliminating manual data entry. This ensures that all your financial data is organized and ready for VAT calculations without hassle.Real-time VAT estimates
With access to your invoicing data, Norman calculates your output VAT and input VAT in real time. It applies the correct 19% or 7% rates, handles special cases like EU transactions, and provides an instant breakdown of your VAT liability. You’ll always know your exact tax position at a glance.Error detection and correction
Norman cross-checks your data for inconsistencies—such as missing VAT amounts or mismatched totals—and alerts you to potential errors before submission. If you’ve already filed and spotted a mistake, Norman can guide you through preparing a corrected UStVA ("berichtigte Voranmeldung") quickly and accurately.Seamless ELSTER integration
Norman integrates directly with the ELSTER portal, pre-filling your UStVA form with calculated figures. It ensures all entries align with the correct tax codes and submits the declaration on your behalf—all within minutes. No more manual form-filling or last-minute rushes to meet the 10th-of-the-month deadline.Deadline management
Never miss a filing date again. Norman tracks your submission frequency (monthly, quarterly, or annual) based on your prior-year VAT liability and sends reminders well in advance.Comprehensive reporting
Beyond UStVA filing, Norman generates all relevant tax declarations like annual VAT declaration, Gewerbesteuer, EÜR, and income tax. You’ll have real-time total tax estimates to know your expected tax burden and everything you need for tax planning—automated and accessible anytime.How to get started
Add your transactions (manually or with a bank sync) and batch upload the documents. Norman saves hours and thousands of euros spent on tax advisors to hundreds of other self-employed.
By automating these tasks, Norman not only simplifies your Umsatzsteuervoranmeldung but also frees you up to focus on growing your business while ensuring full compliance with German tax laws.
2025 updates you need to know
In 2025, the following changes take place:
Threshold increase: Monthly filings now required above 9.000 € (up from 7.500 €).
Kleinunternehmer limits: Adjusted to 25.000 € prior-year revenue and 100.000 € current-year projection.
Digital submission: Paper filings are no longer accepted—ELSTER or tax software is mandatory.
Why accurate calculation matters
Miscalculating your Umsatzsteuervoranmeldung can lead to penalties, liquidity issues, or audits. By mastering this process—or letting Norman handle it for you—you ensure compliance, maintain cash flow, and avoid surprises during your annual VAT return. With the right tools and knowledge, staying ahead is easier than ever.
Ready to tackle your Umsatzsteuervoranmeldung? Follow these steps, automate with Norman, and consult a tax advisor for complex cases. With this guide, you can calculate it like a pro and keep your business thriving in 2025 and beyond.