When you have to close your Self-Employed activity, the procedure is fairly simple. Please follow the steps below:
Step 1: inform the tax office
You must inform your local Finanzamt, with a simple email or letter including the following information
Your Steuernummer
Your contact details
The purpose of the letter (ending your Self-Employed activity and closing your tax number)
The date as from when you will close your tax number
The Finanzamt may request further information.
If that happens, the Finanzamt will send you a follow-up letter with a form like below
Answer the form and send it back to the Finanzamt
If you have a Gewerbe, you need to send a Gewerbe-Abmeldung form to the Gewerbeamt. Each city may have a specific version of this form. For example, see this one from Hessen. Look at your local tax office website.
Step 2: Clean your accounting
Collect your income
Make sure your invoices are all paid
Chase your clients for any overdue invoices
End your ongoing supplier contracts
Cancel your business subscriptions (e.g. mobile phone, Internet connection, software licenses)
Close your recurring contracts (e.g. professional insurances, subcontracting, etc)
Check if you have any recurring payments scheduled from your bank account
Close your business bank account
Liquidate your fixed assets
If you have any remaining assets in your business, you should sell them (it's possible to use the assets privately, but you must clear them into your accounting).
Example: you have purchased a laptop the previous year and the residual value is 500€ -> mark the asset as "sold" and create a 500€ income into your business and you can use the laptop privately.
Step 3: comply to your tax obligations for the year
File all your necessary tax declarations
VAT presubmissions until the date you close your business (if applicable)
Yearly VAT declaration (to be submitted the following year)
Yearly EÜR (to be submitted the following year)
Yearly income tax declaration (to be submitted the following year)
Trade tax (if applicable) (to be submitted the following year)
Pay all due taxes on time
Contact us if you have any questions.