Showing labor costs (Section 35a EStG) on invoices
In Germany, private customers can deduct part of the labor costs of craftsman services from their income tax (Section 35a EStG). This requires that the labor costs can be determined from the invoice. In Pantarey, a labor share is recorded on articles and line items for this. Pantarey calculates labor and material costs from it and, if required, adds a sentence to the invoice and the e-invoice.
Recording the labor share
Articles and invoice line items have the field "Lohnanteil als" (labor share as) with two options:
| Option | Input field | Suited for |
|---|---|---|
| Prozent (percent) | "Lohnanteil (%)" | rules of thumb and pure labor or material items: 100 for working time, 0 for material, e.g. 45 for a mixed item |
| Betrag je Einheit (amount per unit) | "Lohnanteil je Einheit (netto, €)" | labor from the costing, e.g. €38.50 per m² of masonry; for a lump sum (quantity 1) the labor amount of the item |
- Only the matching input field is shown.
- For line items with an article, the article's setting applies. If the line item has its own setting, that one applies.
- Line items without a setting do not count as labor costs.
- An amount per unit is counted at most up to the line item's price.
What counts as labor costs? According to the guidance of the German Federal Ministry of Finance, working time, invoiced machine and travel costs and consumables count, as does disposal as an ancillary service (e.g. rubble). Material and delivered goods do not. The invoice issuer decides which labor share to enter.
What is calculated
| Field | Content |
|---|---|
app_labor_cost_net (per line item) |
labor costs of the line item, net |
app_labor_cost_net, app_labor_cost_vat, app_labor_cost_gross |
labor costs of the invoice net, VAT, gross |
app_material_cost_net, app_material_cost_vat, app_material_cost_gross |
everything else: invoice amount minus labor costs |
app_has_labor_cost |
true if the invoice contains labor costs |
The fields are only set if at least one line item has a labor share. With reverse charge, the labor costs carry no VAT.
Showing labor costs on the invoice
The switch "Arbeitskosten (§ 35a EStG) ausweisen" on the invoice creates the sentence app_labor_cost_note, for example:
Im Rechnungsbetrag sind Arbeitskosten nach § 35a EStG von 2.289,56 € enthalten (netto 1.924,00 € zzgl. 365,56 € USt).
- The same sentence is written as an invoice note into the e-invoice, so the PDF and the e-invoice match.
- The switch only controls the sentence. The labor costs are always calculated.
- The tax deduction only applies to private customers and only to renovation, maintenance and modernisation, not to new buildings. That is why the sentence is switched on per invoice.
Partial and final invoices
Customers deduct the labor costs in the year they pay. Partial payments count as well if the partial invoice itself shows the labor costs. Partial invoices should therefore also have a labor share.
If partial invoices are deducted in a final invoice, Pantarey also deducts their labor costs:
| Field | Content |
|---|---|
app_prepaid_labor_net, app_prepaid_labor_gross |
labor costs already shown in the partial invoices |
app_labor_cost_due_net, app_labor_cost_due_gross |
labor costs in the amount still due |
The sentence then states all three amounts:
Die Gesamtleistung enthält Arbeitskosten nach § 35a EStG von 14.280,00 € (jeweils inkl. USt). Davon wurden 4.760,00 € bereits in den Abschlagsrechnungen ausgewiesen, im verbleibenden Betrag sind 9.520,00 € enthalten.
If the partial invoices have no labor share, the labor costs in the remaining amount are capped at the amount still due.
Adapting the PDF template
The HTML template is not adapted automatically. One block is enough:
{{#if app_labor_cost_note}}
<p class="note">{{app_labor_cost_note}}</p>
{{/if}}
To show the labor share per line item as well, use the line field app_labor_cost_net, e.g. {{currency_eur app_labor_cost_net}}.
Notes
- Pantarey does not check whether and to what extent the customer can deduct the labor costs.
- The tax office does not accept cash payments. The invoice should ask for a bank transfer.
- The e-invoice has no dedicated field for labor costs, so Pantarey uses the invoice note.
- Supported by the services Complete e-invoice, Calculate invoice amounts and Map invoice data to ZUGFeRD.