Training Costs Tax – Important Information

One could say that you are a lifelong learner – in both a figurative and literal sense. Every year, many people choose to pursue further education, for example in the form of vocational training, which is a good investment in the future and can contribute to a higher income. Courses, seminars, specialized conferences, or congresses – all of these are associated with costs. Fortunately, the German tax authorities have provided certain relief in the form of tax deductions for those who want to develop in this way. What is the tax refund for educational expenses in Germany? How do I declare training costs in the tax return? Who is entitled to it? How can you deduct vocational training and further education costs from tax? You will find out later in this article – we invite you to read on.

Tax declaration and training costs in Germany – from the tax office’s perspective

Before you consider deducting training costs in your German tax return deduct, you should check if you are entitled to do so. You should know that the German tax office carefully distinguishes between a simple course and advanced vocational training. Simply put, in order to deduct training for tax purposes, the respective course must expand your professional skills.Generally, the tax office considers the costs as educational expenses:

In der Regel betrachtet das Finanzamt die Kosten als Ausbildungskosten:

•     Training in your current profession,
• retraining,
• further education,
• studies after completing vocational training,
• postgraduate studies (e.g., Master’s).

You can claim these costs as tax-deductible business expenses. 

Aside from training costs, there are other business expenses often overlooked. Particularly relevant for workers in the construction industry, roofing, scaffolding, and landscaping is the winter construction levy. This industry-specific levy is withheld from the gross wage and serves as security for the winter months. It can be fully claimed as a business expense in the tax return and is found on the income tax certificate.

Tip: With a participation certificate, you increase your chances of claiming the expenses in your tax return for your own vocational training.

Which deducting training costs can the German tax office recognize?

If you want to deduct professional further training from tax, you can claim the following expenses:

• Vocational training (course fees, enrollment fees, participation fees, exam fees, or tuition fees),
• purchase of materials (specialist literature, stationery, work clothing),
• costs for a laptop or computer,
• travel costs,
• accommodation,
• obtaining information (telephone, internet).

Flat-rate deduction of training costs in Germany

The current regulations in Germany provide a flat rate of different amounts depending on the type of vocational training costs einen Pauschalbetrag in unterschiedlicher Höhe vor. Below you will find examples of individual expenses.

• Costs for obtaining information, including telephone and internet costs – 20 € per month or 240 € per year.
• Training costs in the tax return associated with the acquisition of a computer or laptop – from 2018, you can claim a one-time deduction for acquisition costs, e.g., a computer amounting to 800 € (currently 952 € gross). The amount of the refund claim depends on the date you purchased the device. 
• Travel costs – for the first 20 kilometers, the flat rate is 30 Eurocents per kilometer, from the 21st kilometer, 38 Eurocents per kilometer can be claimed. The refund includes the trip to and from the place of vocational training.
•     Accommodation costs – 20 € per night in Germany (if you do not have an invoice from the hotel). If the training takes place in another city, you must also cover the catering costs. For this reason, you can claim a further training tax return amounting to 14 € per day of arrival and departure and 28 € per day, i.e., for full training days, receive.

Regarding the training costs it does not necessarily have to be a flat rate. If you have receipts that prove the actual costs incurred, you can claim the excess payment based on these receipts. Of course, you don’t have to send them along with your tax return to the German tax office, but they can be useful if the tax office wants to see them.

Vocational training costs and training costs in tax – under what conditions can they be deducted?

To be able to deduct the training costs for tax purposes in Germany, you must have a sufficient reasonfor it. And why? Sometimes the tax office asks you to explainwhy this particular training is important and useful for your career.

Please note that a purely private deduct training for tax purposes, is not deductible. If you apply for a refund, you must credibly justify to the tax authoritiesthat the respective course has indeed contributed to your professional development.

Do you need help settling vocational training costs? Then use Taxando, a modern application for your tax return. Our application helps you create the right tax return and saves you time and stress. If you choose the PREMIUM package, you can rely on the support of an experienced tax advisor who will handle all the formalities for you. The preparation of a tax return with Taxando takes only a few minutes – get informed today!