Tax or no tax: a quick guide to expense invoicing for freelancers

By Paul Panserrieu โ€” Wednesday, August 30, 2023, Berlin

When I started freelancing, VAT (Value Added Tax) was the furthest thing from my mind. Even more distant was the concept of re-invoicing my expenses, a challenge many freelancers face as part of the complexities of freelancing.

That changed quickly after my first work trip abroad.

Suddenly, I had questions like:

  • How do you re-invoice the Berlin-Paris flights?
  • How do you re-invoice the taxi from your home to the airport?

For intra-European flights, there is no VAT. In Germany, the VAT for taxi rides is 7% for trips less than 50 km and 19% for longer journeys.

However, when re-invoicing a client for a taxi ride in Germany, you should only charge the amount excluding VAT, as you can claim it back.

This might not seem obvious unless you've dealt with it before!

Navigating VAT with momo.coach

In momo.coach, once you assign a tax to any expense, you can only re-invoice the base amount.

Why?

Because the tax is the part that you get reimbursed for by your state.

If you want to re-invoice the entire amount of an expense, simply don't add any tax to it. It's that easy!

Words are great, but a video is even better. Check out this quick guide (speed is x2) ๐Ÿ‘‡

Why combat with complicated invoicing systems? Sign up for a free 30-day trial of momo.coach and master your freelance admin tasks without breaking a sweat!

Plan

With 10GB storage
10โ‚ฌ/month

no long-term contract, you can cancel at any time