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Taxes

  • Introduction
  • Important Rules for Everyone
  • When do I need to register a business?
  • Payment Methods on Fanto
  • Special Cases (Important!)
  • Special Info for Students on Fanto
  • Earning extra while receiving Bürgergeld
  • VAT (Umsatzsteuer)
  • Helpful things to know when earning on Fanto
  • What if I earn a lot?
  • Helpful Links for Users
  • Important Note

Earn extra money with your skills — but what about taxes? Don’t worry. Here’s what you need to know when using Fanto in Germany.


Who can earn money on Fanto?

Everyone. But depending on your situation, different rules apply.

Important Rules for Everyone

Good to know before you start
Rule Amount Meaning
Profit under €410 per year Tax-free No tax declaration needed
Profit above €410 per year Taxable Must declare in your tax return
Up to €22,000/year revenue Kleinunternehmer possible No VAT (Umsatzsteuer)
Payment Direct Cash / PayPal / Bank Transfer

When do I need to register a business?

Important if you plan to earn regularly
When is a registration recommended?
- If you have regular earnings through Fanto
- If your profit is above €410 per year

Where to register?

At your local Gewerbeamt (Trade Office).


How much does it cost?

Usually around €20 - €30 one-time fee.


Good to know

Registration is easy and quick. It shows that you are serious and professional.

Payment Methods on Fanto

How do I get paid for my service?
Payments on Fanto are always direct between user and customer.
Allowed payment methods:
PayPal
Bank transfer
Cash

Important Tip:

Always keep a simple proof of payment — like a screenshot, photo or short note. This helps if questions arise later.

Special Cases (Important!)

Elternzeit (Parental Leave)
What should I know when working during Elternzeit?
- You are allowed to work max. 32 hours per week.
- Extra income reduces your Elterngeld payment.
- You must inform your Elterngeldstelle (Parental Benefit Office) about any extra income.

Important: If you earn money during Elternzeit, the Elterngeld office will recalculate your benefit amount.

Special Info for Students on Fanto

Important things students should know about taxes

Many students earn extra money through tutoring, design, or small jobs. That is totally fine — just check the following points:

- Keep an overview of your income (write down what you earn).
- Profit up to €410 per year → No tax stress.
- Over €410 per year → Declare it in your tax return (but tax is only due if total income is very high).
- Health insurance limit: €470/month if you are family insured. Above that you may have to pay your own insurance.

Tip: Always check your personal situation or ask a tax advisor (Steuerberater).

Bürgergeld (Welfare)

Earning extra while receiving Bürgergeld
How much money can I keep?
Income You keep Rest reduces Bürgergeld
€0-€100 100% €0 reduction
€100-€520 20% 80% reduction
€520-€1000 30% 70% reduction
Above €1000 10% 90% reduction

Important: Always inform your Jobcenter if you earn money while receiving Bürgergeld.

VAT (Umsatzsteuer)

Do I have to add VAT to my prices?
Simple rule for small service providers on Fanto:
- If your revenue is up to €22,000 per year: No VAT (Kleinunternehmer)
- If your revenue is over €22,000 per year: You must add 19% VAT to your prices

Most people starting on Fanto will not need to deal with VAT because they stay under €22,000 revenue per year.

If you reach higher earnings, you can contact the tax office for advice and register for VAT.

Important Tips

Helpful things to know when earning on Fanto
- Keep a simple overview of your earnings (list or Excel).
- No stress for small incomes – for many users taxes are no problem at all.
- You only pay tax on your profit (income minus costs like materials, transport, fees).
- Keep receipts or screenshots if needed — for your own security.

Tip: If you grow and earn more, think early about registering a small business (Kleinunternehmer).

What if I earn a lot?

No stress — even with higher earnings it is simple.
If you start earning regularly and higher amounts:
- Register a small business (Kleinunternehmer) at your local Gewerbeamt.
- File a tax return once a year.
- No problem at all if you do it correctly — it is very common in Germany.

Many people in Germany have a small side business next to their job or studies. Just stay transparent and organized.

Helpful Links for Users

More detailed information about taxes & side income
Tax rules for side income in Germany (Taxfix Guide)
Starting a small side business (fuer-gruender.de)

These pages offer helpful, up-to-date information if you want to know more or have specific questions.

Important Note

Disclaimer & Responsibility

For detailed advice about your personal tax situation always ask a Steuerberater (tax advisor).


Fanto is a platform that connects users. We do not provide tax advice and we are not responsible for your tax obligations or financial matters.

Each user is responsible for checking their own legal and tax situation.

Fanto only provides the platform for connecting people who offer or book services. We do not act as employer, contractor or tax advisor.

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