Advertising 📢

Advertising 📢

Examples:

Google/Meta Ads, brochures, affiliates

Advertising expenses are fully tax-deductible because they are considered essential business costs aimed at generating income. The German tax system allows these deductions to encourage investment in marketing and support business growth.

Advertising expenses are fully tax deductible for self-employed and small businesses (SMBs) in Germany. These costs are recognized as essential operational expenses intended to generate business income, and thus directly reduce taxable profits.

Common deductible advertising expenses include:

  • Online advertising: Google Ads, Facebook Ads, Instagram Ads, LinkedIn Ads, TikTok Ads, and other social media marketing.

  • Traditional advertising: Print media ads, flyers, billboards, radio spots, and television commercials.

  • Digital marketing services: SEO (search engine optimization), SEM (search engine marketing), email marketing campaigns, and professional agency fees.

To claim advertising expenses, self-employed should maintain clear records, including invoices, receipts, and payment confirmations. These deductions are declared annually through VAT declarations and the profit-and-loss statement (Einnahmen-Überschuss-Rechnung, EÜR).

Pay attention to the invoices coming from Google and Meta. Likely, they will apply the Reverse Charge mechanism, meaning that they won't include VAT. For a VAT-liable freelancer it's not a problem, just a slightly more complex Umsatzsteuervoranmeldung.

Unfortunately, Kleinunternehmer receiving these invoices get in a VAT trouble. They must complete a Umsatzsteuervoranmeldung and pay the missing VAT on these invoices to Finanzamt.

Get a cheat sheet with the main expense categories and specific examples of what you can deduct from taxes

The data is provided for advertising purposes in exchange for downloading service offers (including templates and eBooks). I agree that Norman will inform me about accounting topics (news, promotions, webinars) in the future through email and social media advertising. Additional information on the processing of personal data can be found in the privacy policy.

The data is provided for advertising purposes in exchange for downloading service offers (including templates and eBooks). I agree that Norman will inform me about accounting topics (news, promotions, webinars) in the future through email and social media advertising. Additional information on the processing of personal data can be found in the privacy policy.

© 2025 Norman AI GmbH

© 2025 Norman AI GmbH

© 2025 Norman AI GmbH