EÜR and advance VAT returns: what self-employed people need to know
Determining profit and reporting VAT are different tasks. This guide explains requirements, deadlines, common mistakes and digital preparation with Motorica.io.
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Two filings with different purposes
The Einnahmenüberschussrechnung (EÜR) compares tax-relevant business income and expenses to determine profit. An advance VAT return (UStVA) instead calculates the VAT advance payment or input VAT surplus for a reporting period. A business may need both; one does not replace the other.
The annual VAT return is also a separate procedure. Filing monthly advance returns is neither annual profit determination nor automatically the final annual return. Keeping these distinctions clear helps organize documents, deadlines and payments. This guide explains German tax rules in general and does not replace individual tax advice.
Who may use EÜR to determine profit
§ 4(3) EStG permits EÜR for taxpayers who are not legally required to keep books and prepare regular accounts and do not do so voluntarily. Being a small business does not automatically establish eligibility. Legal form, statutory bookkeeping duties and the actual method of profit determination matter.
EÜR generally follows receipt and payment rules but has exceptions, including depreciation and special treatment of certain assets. Money received and paid on another person’s behalf must be distinguished from the business’s own income and expenses. A list of all bank transactions therefore does not automatically produce a correct EÜR. Under § 60(4) EStDV, it generally must be submitted electronically using the official dataset; a hardship exemption may be granted on application.
Who files advance VAT returns
For businesses under regular VAT taxation, § 18 UStG generally governs advance returns. Business size or profit alone is not the deciding factor. The default period is a calendar quarter. If the previous year’s tax exceeded €9,000, returns are monthly. At no more than €2,000, the tax office may exempt the business from advance returns and payments; this is not a decision the business can simply make itself.
For new businesses, the temporary rule in § 18(2) applies in 2026: expected tax or tax annualized from a partial year is relevant. Saying that every new business must always file monthly is therefore inaccurate for this period. Special situations and the tax office’s specific determination must also be considered.
Do not confuse the small-business VAT exemption with EÜR
The Kleinunternehmerregelung under § 19 UStG concerns VAT. For domestic businesses, the law generally sets total-turnover limits of €25,000 in the previous year and €100,000 in the current calendar year. Eligibility, starting a business and any waiver of the exemption require separate assessment. Turnover limits are not profit limits.
For qualifying transactions, the regular declaration duties in § 18(1)–(4) generally do not apply; tax office requests and special cases, including § 18(4a), remain possible. Small-business VAT status removes neither proper recordkeeping duties nor automatically the need to determine profit. Conversely, using EÜR does not determine whether you must charge VAT.
Keep the different deadlines apart
Advance VAT returns and the corresponding payments are generally due by the tenth day after the period ends. An approved permanent extension under § 46 UStDV adds one month. Monthly filers may need a special advance payment. Under § 108(3) AO, a deadline ending on a Saturday, Sunday or public holiday generally moves to the next working day.
EÜR belongs to the annual tax-return process. The general annual-return deadline in § 149(2) AO is seven months after the calendar year ends. Different deadlines apply when a tax adviser is involved; transitional rules, early requests and individual extensions may also matter. Always check the specific tax year. A permanent VAT extension does not automatically extend your income tax deadline.
Two simplified examples
EÜR example for a small business using the VAT exemption, without special cases: €30,000 in relevant business income less €8,000 in deductible business expenses gives €22,000 profit. This assumes correct recording and allocation and no other adjustments or depreciation. It does not establish the amount of income tax.
VAT example for a different business under regular taxation: €1,900 VAT on sales less €380 deductible input VAT gives a €1,520 advance payment. This says nothing about profit. The examples deliberately concern different tax situations. Neither the bank balance nor invoiced turnover should be mistaken for profit or the tax amount respectively.
Common mistakes and a reliable monthly routine
Common mistakes include duplicate receipts, treating private spending as business expenses, incorrect VAT rates, unjustified input VAT deductions and confusing invoice, supply and payment dates. Treating technical validation as a tax approval or equating submission with payment is equally problematic.
Work regularly: collect invoices and receipts, check recognized data, match payments and clarify special cases. Then review periods and totals, document corrections and discuss unresolved questions with your tax adviser. Allow time for error responses before the deadline. Filing then becomes the final step in organized ongoing work.
How Motorica.io supports the workflow
Motorica.io brings quotes, invoices, e-invoices, receipts and payments together in a digital office. EÜR and advance VAT data are prepared, technically validated with ERiC and submitted through ELSTER following explicit approval. Requirements include complete business details, a suitable valid certificate, permissions and a supported period. EÜR submissions cover 2021–2025 and advance VAT returns 2021–2026. EÜR for 2026 cannot yet be sent.
The interface supports twelve languages without changing German tax requirements. The official ELSTER software directory lists Motorica.io, without granting certification, a recommendation or a partnership. Motorica supports the technical work. Whether an obligation exists or a transaction has been correctly treated remains a tax question.
Frequently asked questions
Does every self-employed person need both filings? No. The profit-determination method and VAT obligations must be assessed separately.
Is an input VAT surplus a loss? No. It describes the relationship between VAT and input VAT, not profit.
Is EÜR a complete tax return? No. It is one part of the tax-return process.
Is anything required after successful submission? Check the submission protocol, retain your records and arrange any payments due.
Read more and try it
The practical guide explains preparation, validation and responses. The background article explains EÜR, VAT and deadlines.
Explore the ELSTER features
Invoices, receipts and payments provide the basis for EÜR and advance VAT returns. Motorica checks filing data with ERiC and submits it through ELSTER after your approval.
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