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2.4.1 General information on tax liability

Due to the legalization, sex work is subject to notification.

That means you have to register as a self-employed escort or hobby whore, no matter how you call your work in the adult industry, your activity at the tax office and tax your income. Otherwise you will commit tax fraud and make yourself punishable.

Get advice from a tax advisor who has experience in dealing with prostitution. Specialist advice centers for sex workers usually know and provide the addresses of suitable tax advisors. With a little practice, you can keep a cash book yourself and make a tax return.

Check-ups and raids in brothels, meeting apartments, hotels, in private apartments (investigators sometimes disguise themselves as bogus people when making contacts) and on the street are common. Investigators are made aware of your services through advertisements, whether on the Internet or in the newspaper. If you have not registered your business, there is a risk of a retrospective tax estimate of one year or more. This can be reconstructed through ad runtimes in print and online media. Advertising always means the intention to generate income in a long-term employment and is treated that way, regardless of whether you have one customer a week or several in a day.

Furthermore, the so-called "Düsseldorfer Modell" was introduced in some cities, a special tax that many women in sexbiz fall back on if they want to work for an agency, club or brothel. The operator deducts a sum X from your earned income per working day. This special or flat tax is regulated very differently from city to city and in the different federal states. However, it does not exempt you from the income tax return (as many escorts still do not know), but is a tax prepayment that is taken into account in the regular tax return. You should collect receipts for the flat-rate contributions paid so that you can prove this if necessary during an examination.

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