Peer Group: Kinderbetreuung & Kita

Childcare is VAT-exempt under §4 Nr. 25 UStG for recognized facilities. Income tax depends on structure: gGmbH/e.V. with Gemeinnützigkeit—no corporate tax on mission-related activities. Commercial GmbH—normal corporate taxation. Tagesmutter—income tax on profit, but favorable calculation (often Betriebskostenpauschale of €300/child/month deductible). Choose structure based on mission and tax implications.

Both can achieve Gemeinnützigkeit (tax exemption) if purpose and operations qualify. gGmbH: limited liability, clearer governance, easier banking and contracts. e.V.: member-based, potentially complex governance, tradition in childcare. gGmbH increasingly preferred for professional operations. Key: maintain non-profit purpose, no profit distribution, proper documentation. Consult advisor before structure choice—changing later is difficult.

Tagesmütter (home childcare providers) have simplified tax treatment. Income is gewerblich but with favorable expense calculation: Betriebskostenpauschale of approximately €300/child/month can be deducted without proof. This often results in low or no taxable income. Register with Jugendamt for qualification. VAT exempt if under Kleinunternehmerregelung threshold or as recognized childcare. Keep records of children and hours.

Subsidies (from municipality, state, federal) require careful documentation: application, approval, use of funds, reporting. Track each subsidy separately—many have specific use requirements. Record matching: which costs were covered by which subsidy. Retain documentation 10 years minimum. Late or incorrect reporting can trigger repayment requirements. Use accounting software that handles restricted fund tracking.