A service tax is to be paid on the rent

What are advertising expenses?

You drive to work, do your professional education or move to a new city - all so that you have a good job and earn money. The tax authorities call these costs advertising costs. And because income-related expenses are closely related to making money, the state supports you. That means: You can deduct the advertising expenses from your income. You only have to pay taxes on what is left of the money.

You can have business expenses if you a) earn money as an employee, b) receive a pension, c) invest money in a bank and receive interest, d) have a rental house and earn rent, and e) if you have other income that is not arise through self-employment.

What are all the income-related expenses for employees?

There are many things about your job that you have to spend money and what you could get back taxes at the end of the year. However, because there are so many different professions and therefore also different expenses, we have summarized the most important ones for you here:

  • The trips to work, regardless of whether you use public transport, your own car or a car pool.
  • Travel expenses for a business trip.
  • Work clothing, such as a lab coat.
  • Specialist books or journals that revolve around your professional topic and keep you up to date.
  • Tool that you need for your job, for example hairdressing scissors.
  • In some cases, the home study.
  • Telephone costs and Internet costs under certain circumstances.
  • A second home that you need for professional reasons.
  • Advanced training or further education.
  • The cost of a second training after the first one has been completed.
  • Costs for applying for a new position.
  • Costs for moving to a new job, for example.
  • Accident costs incurred on the way to work.
  • Contributions to professional associations and unions.
  • Certain insurance contributions such as professional liability insurance or labor legal protection insurance.
  • Legal fees and court costs, for example in the event of disputes with the employer.
  • Costs for tax advice for the preparation of Annex N (for income from employment).

You add up all receipts and receipts for bus tickets, work clothes or other professional expenses at the end of the year and enter them in Appendix N in your tax return for income-related expenses.

By the way:

The state allows every employee to claim a flat rate of 1,000 euros per year as income-related expenses. This means that the tax office automatically takes into account an employee flat-rate amount of 1,000 euros for income-related expenses without any evidence. This amount will be deducted from your employment income even if you have incurred little or no income-related expenses. Our article on the flat rate for income-related expenses explains how this works.

Our infographic gives you a quick overview of the most common advertising expenses:


Can I also have income-related expenses as a pensioner?

Of course, pensioners are also allowed to enter income-related expenses in the tax return, namely in Annex R. Our tax tip explains the income-related expenses. Pensioners can deduct income-related expenses from tax.

Are there also income-related expenses for capital income?

Most of the time, if you make money by investing your money skillfully, you will have costs for bank charges and so on. Since 2009, however, you are no longer allowed to deduct the actual amount of these costs from income as income-related expenses. Instead, there is the so-called saver lump sum, for which only costs of a maximum of 801 euros for capital income may be entered in the tax return (Appendix KAP). That means: For singles there is no more than 801 euros, no matter how high the costs are. For couples who are assessed for tax together, it is 1,602 euros.

What are advertising costs when renting and leasing?

Landlords can also enter income-related expenses in their tax returns, more precisely in Annex V (for income from renting and leasing). These include, for example, the property tax for the rental house and renovation costs. You can find out which costs landlords can still deduct as business expenses in our article What landlords can deduct from tax. By the way, there is no limit.

And what if I still have "Other Income"?

Other income (Annex SO) includes, for example, the maintenance of an ex-partner or the parliamentary allowance of a politician. Here, too, there may be advertising costs. For maintenance income, for example, a lump sum of 102 euros applies. This amount will be automatically deducted from the income and you will only have to pay taxes for the rest.

This is an editorial text from the VLH editorial team. There is no advice on topics that are outside the tax advisory powers of an income tax aid association. Consulting services in specific individual cases can only be provided within the framework of the establishment of a membership and exclusively within the consulting authorization according to ยง 4 No. 11 StBerG.