The profession of a model is generally exercised as a self-employed activity and is usually classified as commercial. The Federal Court of Finance has already ruled on this in its judgment of 08.06.1967 (Az. IV 62/65) decided that even photo models who work occasionally and temporarily in the clothing industry for advertising purposes are engaged in commercial activities.

If a model works independently, a business registration with the responsible trade or public order office of the respective municipality is generally required. This applies to both full-time and part-time work. The precondition for the business obligation is that the activity is intended to be permanent and operated with the intention of making a profit, i.e. to generate income that exceeds the costs incurred.

Such a profit-making intention can be assumed in particular when a model, for example, creates a sedcard and actively offers themselves on the market for paid work. This regularly indicates the establishment of a sustainable income source and justifies the obligation to register the business.

However, a distinction must be made between freelance and commercial activities for tax purposes. This classification is decisive for tax obligations and the type of taxation. A freelance activity is particularly present when the model’s work is predominantly artistic or creative, for example in the fashion or editorial sector, where artistic expression is the main focus. In such cases, there is usually no trade tax liability and no business registration is required.

In contrast, the activity is classified as commercial if it is predominantly commercially oriented, for example in advertising campaigns, promotional jobs or collaborations with companies, especially in the area of social media. In these cases, there is an obligation to register the business and, depending on the amount of profit, to pay business tax.

In practice, a mixed activity is often observed, where both freelance and commercial income is earned. In such cases, the income must be recorded separately and treated differently for tax purposes.

Against this background, it is necessary to report the activity to the tax office, to document all income properly and to make a clear distinction between the respective types of income. As classification can be complex in individual cases, it is advisable to seek tax advice at an early stage to ensure a legally secure treatment and avoid tax risks.