Einnahmen-Überschuss-Rechnung (EÜR) is a simplified procedure for tax profit determination for natural persons (e.g., freelancers, sole proprietors), in which profit is determined as the difference between actual receipts and payments of a calendar year. The legal basis is § 4 Abs. 3 EStG; the applicable principle is the cash receipts and payments principle (Zufluss-/Abflussprinzip) (§ 11 EStG).
Who can use the EÜR?
The EÜR is aimed at taxpayers who are not required to keep double-entry accounts. Typical users include:
- Freelancers (doctors, lawyers, artists, IT consultants)
- small traders not obliged to maintain double-entry bookkeeping
- sole proprietors with manageable turnover and profits
If accounting in the form of a balance sheet is required under commercial or tax law, the EÜR cannot be used. If you are unsure about your bookkeeping obligations, please check the current legal situation or consult your tax advisor.
Essential principles and components
The EÜR is based on the cash receipts and payments principle: receipts are recognized in the year in which they are received; payments are recognized in the year in which they are paid. Therefore, recording cash-effective transactions is central.
- Receipts: Business receipts from services, sales, fees (generally net amounts, if entitled to input VAT deduction).
- Payments/Expenses: Business expenses such as rent, materials, travel costs, office supplies (also net amounts; treat input VAT separately).
- Fixed assets and depreciation (AfA): Acquisitions of assets with a useful life >1 year are capitalized and depreciated over the normal useful life.
- Low-value assets (GWG): Small purchases can, depending on the current threshold, be written off immediately as an expense (check the current GWG threshold).
Practical implementation in accounting
For day-to-day practice a structured process is recommended:
- Record all cash receipts and payments chronologically.
- File supporting documents systematically (electronically or paper-based).
- Classify costs (e.g., personnel costs, office supplies, travel expenses).
- Reconcile monthly with the bank account and, if applicable, the cash on hand.
Concrete examples
- Laptop purchase as an entrepreneur: If the net value exceeds the GWG threshold, the amount is capitalized and spread over the depreciation period; if the purchase is below the GWG threshold, immediate write-off may be possible.
- Incoming customer payment: Fees count as income at the time of receipt; an invoice paid only in the following year is allocated to the year of receipt.
- VAT treatment: As a taxpayer entitled to input VAT deduction you record VAT separately and reclaim input VAT in the VAT advance return/annual return; in the EÜR net amounts are usually recorded.
Many freelancers use simple spreadsheets or accounting software that supports the cash receipts and payments principle and assignment to categories. Automated bank reconciliations reduce errors and effort.
Formal obligations, deadlines and retention
The EÜR is usually submitted electronically to the tax office via the "Anlage EÜR" in the ELSTER portal. Pay attention to deadlines for the income tax return; different dates may apply if an extension is filed through a tax advisor.
Important formal rules:
- Document retention: According to § 147 AO tax-relevant documents must be retained (generally 10 years for books, accounting records and annual financial statements; 6 years for other documents).
- Completeness and verifiability: Every receipt and payment must be verifiable by a supporting document.
- Value added tax: The EÜR does not replace the obligation to file VAT advance returns or a VAT return if you are entitled to input VAT deduction or if the tax office requires advance payments.
Tips for practice
- Produce monthly reports to monitor liquidity and expected annual profit.
- Keep private and business accounts strictly separate to keep the EÜR transparent.
- Use templates or software that can export the Anlage EÜR to avoid transfer errors.
- Clarify uncertain cases (e.g., obligation to prepare a balance sheet, tax treatment of special cases) promptly with your tax advisor.
The EÜR is an efficient and practical instrument for profit determination for many freelancers and small businesses. Properly implemented, it reduces bureaucracy and provides a clear overview of your business’s financial position.