Taxes on Hairdressing and Beauty Salons (Friseure & Kosmetikstudios) in Germany
(Steuern für Friseursalons und Kosmetikbetriebe)
1. Are hairdressing and beauty salons subject to tax?
Yes. A hairdressing or beauty salon is generally considered a business (Gewerbebetrieb) and is therefore subject to several types of taxes.
There is no separate tax officially called “Friseursteuer”. What people usually mean by this term is the sum of all taxes that apply to this type of business.
Type of tax – Is it levied? – Notes
Income tax (Einkommensteuer)
– Yes
– on the net profits of the owner, if they operate as a sole proprietor (Einzelunternehmer)
Trade tax (Gewerbesteuer)
– Yes
– with a tax-free allowance of 24,500 € per year (for sole proprietors and certain partnerships)
Value-added tax / VAT (Umsatzsteuer)
– Yes
– 19% on all services and products
Wage tax (Lohnsteuer)
– Yes
– if you have employees – wage tax is withheld and paid for those employees
Social security contributions
– Yes
– for the business owner (if not insured through another job) and for all employees (pension, health, unemployment and long-term care insurance)
For hair and beauty businesses, VAT at a rate of 19% is charged on:
Haircuts, colouring, styling, beard care
Skin care and beauty treatments, make-up
Sale of products (shampoos, conditioners, hair dyes, cosmetics, etc.)
Nail treatments, nail extensions, manicures and pedicures
Eyelash extensions, waxing, hair removal, other cosmetic treatments
There is no reduced VAT rate (7%) applicable to these services.
The standard rate of 19% always applies.
Profit = annual business income – deductible business expenses
Type of expense – Deductible? – Examples
Rent – Yes
– rent for the salon premises / business location
Electricity and water bills – Yes
– ongoing utility costs for running the salon
Tools and equipment for hair and beauty – Yes
– scissors, combs, styling chairs, wash stations, mirrors, devices, etc.
Care and cosmetic products – Yes
– shampoos, conditioners, hair dyes, colours, creams, masks, beauty products
Training and professional development – Yes
– workshops, seminars, master classes, professional courses
Accounting or POS software & systems – Yes
– cash register systems (Kassensystem), accounting software, booking and scheduling tools
Wages and social contributions for employees – Yes
– gross salaries, employer’s share of social insurance, bonuses, holiday pay, etc.
Tax and legal advice – Yes
– fees for a tax advisor (Steuerberater), lawyer, etc.
Type of return – When?
Advance VAT returns (Umsatzsteuervoranmeldung)
– monthly or quarterly, depending on your turnover and the tax office’s requirements
Income tax return (Einkommensteuererklärung)
– once a year
Trade tax return (Gewerbesteuererklärung)
– once a year
EÜR or balance sheet (Einnahmenüberschussrechnung / Bilanz)
– depending on the size of the business and its legal form:
small sole proprietors often use the simplified profit calculation (EÜR)
larger businesses and corporations draw up a balance sheet
The small business regulation (Kleinunternehmerregelung) can be used if:
your annual turnover in the previous year was below 22,000 €, and
your expected turnover in the current year does not exceed 50,000 €
In this case:
you do not charge VAT on your invoices, and
you cannot claim input VAT (Vorsteuer) on your purchases
→ This can be useful for beginners and very small salons,
but it may be disadvantageous if your operating costs (products, equipment, rent) are high and you would benefit from deducting input VAT.
Friseur / Kosmetikerin – hairdresser / beautician
Friseursalon / Kosmetikstudio – hairdressing salon / beauty studio
Umsatzsteuer (MwSt) – value-added tax (VAT), here 19%
Gewerbesteuer – trade tax
Einnahmenüberschussrechnung (EÜR) – simplified income-surplus statement (simple profit and loss method)
Kassensystem – point-of-sale / cash register system
Hairdressing and beauty salons are treated as commercial businesses and are subject to all main types of taxes (income tax, trade tax, VAT, wage tax, etc.).
The VAT rate is always 19% on services and product sales in this sector.
All business-related operating expenses can be deducted as business expenses to reduce taxable profit.
The small business regulation (Kleinunternehmerregelung) can be helpful at the start but is often not ideal when you have high operating costs.
Filing all tax returns and advance returns on time is essential to avoid penalties and late payment interest.
The editorial team of the website strives to provide accurate information based on thorough research and multiple sources. Nevertheless, errors may occur, or some information may be uncertain or incomplete.
Therefore, the information in this article should be regarded as an initial reference only. For binding and final guidance, you should always consult the competent authorities or a qualified tax advisor.
