Are you an individual and do you generate a trade income of more than EUR 24,500 with your domestic trade business? If so, you are above the exemption amount and must submit an electronic trade tax return to your tax office. In it, you declare the amount of your trade income in the assessment period - i.e. in the past calendar year.
In addition, you declare any further additions or reductions based on your profit or loss - income less expenses.
You also specify the municipality in which you operate your business. You will then receive a notice from the tax office about the so-called trade tax assessment amount.
The tax office determines the trade tax assessment amount by multiplying the trade income by the tax assessment figure of 3.5 percent. This measurement amount is the basis for the amount of trade tax.
The tax office informs the municipality in which you operate your trade about the trade tax measurement amount. You will then receive a notice of the trade tax to be paid by you or to be refunded to you by the municipality.
The municipality calculates the trade tax from the trade tax assessment amount of the tax office multiplied by the trade tax assessment rate of the municipality. Each municipality determines its own assessment rate.
The municipality also decides on the advance payments of the trade tax to be paid by you in the future for the subsequent collection period with the notice of the trade tax.