III. Düsseldorf procedure (Düsseldorfer Verfahren)

In Baden-Württemberg, there is a simple method of advance tax payment known as the “Düsseldorf procedure” for people who work in the sex industry. Prostitutes pay a fixed daily rate to the operator of the place where they work. Participation in the Düsseldorf procedure is voluntary. The operator forwards the collected money to the local tax office that is responsible for tax audits. 

Not all federal states use the Düsseldorf procedure. That's why it is important to remember that the exact rules for paying taxes may vary from state to state. So it is advisable to check the specific regulations in the region where you are working with the local authorities, tax offices or advice centres.

Yes; as a self-employed prostitute you have to file a tax return with the tax office even if you are following the Düsseldorf procedure. The Düsseldorf procedure mainly concerns the way in which prostitutes’ taxes are recorded and paid, but it does not exempt you from the requirement to file a tax return.

You declare your income, expenses and all relevant tax information in the tax return. This is necessary in order to ensure that you pay the correct amount of tax and to avoid the risk of back taxes or other tax-related problems.

It is important to provide accurate and complete information in your tax return and to observe the deadlines for filing. If you are unsure of anything or have any questions concerning your tax return, contact a tax accountant or your local tax office to make sure you are taking all the necessary steps correctly.

Participation in the Düsseldorf procedure does not exempt prostitutes from filing a tax return. However, in most cases the tax offices do not check this.

Nevertheless, it is still highly advisable to file a tax return even if you follow the Düsseldorf procedure.

Presenting a tax return is important, for instance, for health insurance or at a job centre.

The Düsseldorf procedure does not exist in some federal states, and some brothels do not participate in it. This is another reason why it is always good practice to record all your income and expenses.

1. **Restriction of tax benefits:** You may not be able to take advantage of all the tax benefits you're entitled to if you can’t prove your actual expenses and deductions.

2. **Tax loss:** If you record your income as less than the actual amount you earn, you may have problems with the tax authorities in the future and possibly have to pay back taxes.

3. **Dependence on operators:** The Düsseldorf procedure requires you to make the advance tax payments to the operators of the prostitution venues. This could lead to dependent relationships if the operators control and possibly abuse the payment amounts. It is important that you always obtain a receipt from the operators in order to prove that you have paid taxes through the Düsseldorf procedure.

It is also important to note that the impact of the Düsseldorf procedure may depend on your individual situation and the implementation in your region. So be sure to find out all you need to know and, if necessary, seek legal or tax advice to ensure that you meet your tax obligations and do not suffer any disadvantages.