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Services for Germany

Abzugsteuer - Withholding tax processing

We will help you handle the withholding tax (Abzugsteuer). We calculate the deduction, record it and prepare the necessary documents.

The scope of our service covers:
Lenka Vargová

Lenka Vargová

specialist

Need advice?

If anything is unclear, do not hesitate to contact us. We are here to help.

Our accountant Lenka Vargová will advise you.

Abzugsteuer - Withholding tax processing

Do you work with sole traders or companies in Germany and have you found that they do not hold a valid exemption from the construction withholding tax (Freistellung)? In that case the law requires you to withhold part of the invoiced amount as Abzugsteuer (withholding tax) and pay it to the German tax office. The client has to check this and, where a subcontractor has no Freistellung, must withhold the tax from the invoices issued.

You do not have to puzzle over this legal duty – we will gladly help. We handle the deductions from start to finish:

- We check whether the sole trader or company is subject to the withholding tax

- We calculate the amount of the deduction 

- We record the deduction correctly 

- We prepare the certificate for the German tax office 

- If needed, we also provide the documentation for the sole trader or company

We guarantee that everything is done correctly and in line with German law, so that you avoid fines and needless complications.

How does the application work?

You fill in the form

Just fill in a short form, we will help you with everything.

You send the documents

Send us the documents we need — we will tell you exactly which ones.

You sign the application

You sign the application and we take care of the rest.

Frequently asked questions

You have to withhold the tax (Abzugsteuer) when the sole trader or company working for you in Germany does not hold a valid Freistellung (exemption from the construction withholding tax).

It is usually 15 % of the amount excluding VAT. The exact figure can depend on the type of work and other factors. We will help you calculate the deduction correctly.

The company paying the invoice is responsible for withholding and paying the tax correctly.

If the exemption is granted retrospectively, we can help you apply for a refund of the withheld tax, provided the conditions are met. In any case, everything has to be properly recorded.

The withholding tax has to be paid monthly to the relevant German authority. We can help you both prepare the paperwork and send it.

CLIENT SATISFACTION COMES FIRST

Price list for this service

Choose from three packages, whichever best matches what you need right now. Each package covers a different range of features – from the basics to premium solutions.

Basic package

£105.78incl. VAT

Suits those who only want the application processed and filed.

The service includes

  • the application handled within 5 working days of receiving the documents

Popular package

£132.84incl. VAT

For those who want the certainty that every document is prepared and filed correctly.

The service includes

  • the application handled within 3 working days of receiving the documents
  • consultation

Premium package

£158.67incl. VAT

For clients who want a complete service with priority handling.

The service includes

  • the application handled within 1 working day of receiving the documents
  • consultation

This price list is valid from: 31/08/2026

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Katarína Kubištová

Katarína Kubištová

Managing Director