For many expatriates living and working in Germany, ELSTER is the go-to platform for managing tax returns online. This is particularly crucial for freelancers and self-employed individuals.
What is ELSTER (Elektronische Steuererklärung)?
ELSTER (ELektronische STeuerERklärung, meaning “electronic tax declaration”) is an online tax filing system developed by the Federal Central Tax Office (Bundeszentralamt für Steuern). It allows individuals and businesses to submit their tax returns digitally. As of 2024, parts of the platform are available in both German and English.
Freelancers and business owners are required to use ELSTER for filing monthly VAT returns and employee tax statements, alongside around 90% of businesses in Germany. More and more private individuals are also opting for ELSTER to submit their annual tax returns and claim tax refunds. The digital process eliminates the need for printing and mailing tax forms to the Finanzamt (local tax office) while also enabling automatic retrieval of personal information, streamlining the process significantly.
How to Register with ELSTER
Before submitting your tax return, you must create a free ELSTER account. Follow these steps to register:
1. Choose a Login Method
Select a login method for future access. The recommended option is the Zertifikatsdatei (digital certificate file), which is free and user-friendly. Alternatively, you can opt for the ElsterSecure app. Paid options are available for tax advisors and businesses.
2. Account Type Selection
Indicate whether you are registering as an individual, a joint account with a spouse, or a business entity.
3. Provide Personal Information
Fill in your details, including:
- Email address
- Date of birth
- Tax ID
- Preferred username
- Security question and answer
- Password
A progress timeline on the left-hand side will show how far along you are in the process. Hover over the question mark icon next to any field for additional guidance.
4. Opt-In for Pre-Filled Tax Returns
You will be asked whether you consent to the Vorausgefüllte Steuererklärung (pre-filled tax return) feature. This allows the tax office to automatically retrieve data related to:
- Salary
- Unemployment or sickness benefits
- Pension payments
- Contributions to statutory insurance and pension schemes
5. Confirm Your Email Address
After submitting your details, you will receive an email with a verification link. Click it to confirm your registration.
6. Activate Your Account
You will receive an email with an activation code. A second activation code will arrive by post within 14 days. Enter both codes on the ELSTER website to complete the activation process.
7. Download Your Zertifikatsdatei
Once activated, your digital certificate file will be generated. Download and store it securely, as you will need it for every login attempt. For extra safety, consider saving it on a USB stick.
How to Use ELSTER for Annual Income Tax Returns
After logging in using your Zertifikatsdatei and password, you will be directed to the Mein ELSTER (My ELSTER) homepage. Here, you can access required tax return forms. If you are filing voluntarily, navigate to Formulare (Forms) and select the relevant documents.
1. Select the Income Tax Form
Click Einkommensteuer (income tax) followed by Einkommensteuererklärung (income tax return). A list of available forms will appear. If unsure about which forms to complete, refer to an income tax return guide for clarification.
2. Complete the General Tax Form
Fill out the Hauptvordruck (general tax form) with:
- Income details
- German bank account information
- Deductible expenses (e.g., pension contributions, donations)
If you opted for pre-filled tax returns, much of this data will already be entered. Otherwise, refer to your Lohnsteuerbescheinigung (employment tax statement) provided by your employer.
3. Fill Out Additional Tax Forms
Complete any required Anlagen (supplementary forms), depending on your income sources and tax deductions. You may need to submit receipts or proof for deductions.
4. Review and Submit
Ensure all sections are completed correctly. A green checkmark will indicate finalized sections. You can also grant access to a tax advisor for review. Once verified, submit the return. You will receive confirmation in your ELSTER inbox once your submission is received.
Why Use ELSTER for Your Tax Declaration?
- Convenience: No need for printed forms or postal submissions.
- Automation: Retrieve pre-filled data for faster completion.
- Security: Secure digital submission to the tax office.
- Efficiency: Faster processing of tax returns and refunds.
By following these steps, you can efficiently manage your tax obligations in Germany using ELSTER. Whether you are a freelancer, business owner, or employee, ELSTER simplifies the tax return process and ensures compliance with German tax laws.
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