Sorted FAQ

If you’re new to Sorted, here is a list of questions that freelancers often ask us when getting started

Getting started with Sorted

Is Sorted for me?

Sorted covers the entire tax needs for the vast majority of the freelancers and self-employed professionals. Check out our FAQ section on does Sorted support my specific case for more information.

How much does Sorted cost?

You can register as a freelancer, invoice your clients, and track your income and expenses for free with Sorted. You will only need to subscribe to one of our paid plans once you submit your first tax report to the tax office. Find out more about our prices here.

How do I prepare my tax reports with Sorted?

Your tax reports are automatically prepared by Sorted based on the income and expenses you enter. The only exception to this is your personal income tax return, which requires a few more details to complete the report, such as your health insurance or pension contributions.

Who submits my tax reports to the tax office (Finanzamt)?

You submit your tax reports electronically to the Finanzamt through Sorted. Sorted is connected directly to the Finanzamt through their official software provider, ELSTER.

How long does it take to submit my tax reports to the tax office (Finanzamt)?

After you submit your tax reports, you will immediately receive a document confirming that the reports have arrived at the Finanzamt. However, it may take a while before the Finanzamt reviews your tax reports and sends you a tax assessment via post.

Do I need to have an ELSTER account to submit my tax reports?

No, you can submit all your tax reports directly from Sorted. No ELSTER account or certificate needed. Sorted takes care of connecting to the Finanzamt through ELSTER.

Pricing

Can I try Sorted for free?

Absolutely, you will only need to subscribe to one of our paid plans once you submit your first tax report to the tax office.

How much does it cost to register with the tax office as a freelancer?

Both preparing and submitting the freelance tax registration form is free of charge.

How much does it cost to create invoices on Sorted?

Creating invoices on Sorted is completely free of charge.

Can I cancel my subscription if I no longer need to use Sorted?

Absolutely, you can cancel your quarterly or yearly subscription anytime. We will stop charging you from then onwards, and you will still be able to use Sorted until the end of your subscription period.

Does Sorted support my specific case?

I'm working with customers outside of Germany

It is very common for freelancers on Sorted to have clients outside of Germany. When adding your income on Sorted, you will be guided through any additional information you need to provide for clients outside of Germany.

I have clients on the freelancers’ platform Upwork

Many freelancers on Sorted work with Upwork. Sorted will guide you through declaring the income from Upwork. Check out our tax guide on how to make sure you are invoicing your clients correctly through Upwork and whether or not you should apply for a VAT ID to work on Upwork.

I have additional income as an employee

Being an employee and freelancing at the same time is common on Sorted. When preparing your income tax return, you will be able to add your annual payslips (Lohnsteuerbescheinigung) to declare your additional income from salary.

I am married and/or have children

That's not a problem, you can add your spouse's income and submit a joint income tax declaration on Sorted. If you have any children, you can also deduct their costs. Sorted will guide your through the process to ensure that you are getting all tax benefits that you are entitled to as a family.

I am a doctor, teacher, or other type of VAT-exempt freelancer

Sorted will guide you in adding your VAT-exempt income and any additional information that is required to prepare and submit your tax reports. Sorted also supports having a mix of VAT-exempt income and non VAT-exempt income.

I sell goods as a sole-trader

That’s not a problem, you can submit all your tax reports as a sole-trader with Sorted. Your tax consultant on Sorted can help you to prepare the annual trade tax return at an additional charge.

I have income from another country

If you had income while living outside of Germany, or have investments in another country, that’s not a problem. Many countries have tax treaties with Germany so that you don’t have to pay double the taxes. While Sorted takes care of all your German based income, your tax consultant on Sorted can help you declare any income that you earned outside of Germany at an additional charge. However, you may still need to separately declare your taxes in the country where you earned the income.

I'm the owner of a UG or a GmbH

Unfortunately, Sorted does not support UG or GmbH companies at the moment. We only support freelancers and self-employed professionals. It is our mission to support more business owners in the future, so stay tuned for updates.

Tax consultants on Sorted

How can I meet my tax consultant on Sorted?

After you sign up, to Sorted, we will automatically pair you with your dedicated tax firm. Your dedicated tax firm will support you on-demand, whenever you need additional guidance or reports for your specific case.

What are the prices for tax services?

The prices for tax services are set by the tax firms themselves, so may vary slightly between one tax firm to another. We encourage the tax firms to set their prices according to the market standards. Sign up to Sorted to find out the prices for your dedicated tax firm.

I need to renew my freelancer visa. Can I apply for a profit determination signed by a tax advisor?

Getting a certified net profit determination for Visa extension is a common request on Sorted. All you need to do is record your income and expenses on Sorted and request a certified profit and loss statement from your dedicated tax firm.

Are the tax consultants certified on Sorted?

Every tax firm who offers their services on the Sorted platform has been verified by Sorted. We ensure that they employ certified tax consultants according to the tax advisory act (StBerG).

Can I choose my tax firm on Sorted?

Sorted will automatically pair you with your dedicated tax firm once you sign up. This way we can ensure that your dedicated tax firm is not overbooked and can provide high-quality tax service.

What if I am not satisfied with the service of my tax firm?

If for any reason you believe that you did not get a satisfactory service from your dedicated tax firm, we will offer you to switch to a new tax firm. We will happily refund you if the service was not provided as expected.

Becoming a freelancer with Sorted

How much does it cost to register with the Finanzamt as a freelancer?

Both preparing and submitting the form is free of charge.

How long does it take to receive my tax number?

After submitting the form you will receive your tax number from the Finanzamt via post. It usually takes 3-6 weeks to arrive.

I have to apply for a VAT ID. Can I do this with Sorted?

Sure, when filling the tax registration form, you can select whether you want to apply for a VAT ID.

I would like to register a sole-trader. Can I do it with Sorted?

Sure, when filling the tax registration form, you will be able to enter your expected profit from selling goods. In addition to registering as a self-employed, you would also need to obtain a business license (Gewerbeschein) from you local trade office (Gewerbeamt).

Can I get my tax registration form reviewed by a certified tax consultant?

Absolutely, just fill in the form as best as you can and request a review from your dedicated tax firm on Sorted.

Data Security with Sorted

Is my data safe with Sorted?

We use the highest standards to ensure your data security and protect your personal data. We would never pass your data to third parties without asking you first.

Where is my data stored?

We are using Amazon Web Services to run the Sorted software and store your data. Both the data and our servers are all located in Germany (Frankfurt). To secure your personal data, we use the highest security standards, Transport Layer Security (TLS), which encrypts the information you enter.

What about data privacy?

We follow the GDPR guidelines and regularly check on our measures so they always always comply with the latest standards.

What kind of data  do I need to provide to work with Sorted?

We will only ask you to enter information that is relevant to the financial side of your business and your taxes.

Who should I contact regarding any data security questions?

Please feel free to contact us if you have any questions concerning our data security. We are happy to provide you with additional information..

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