(2023)
What is the allowance for voluntary service?
The voluntary work allowance allows you to receive income from a part-time job in the charitable, benevolent or religious sector tax-free up to an amount of 840 Euro per year (§ 3 No. 26a EStG). This tax relief is aimed at individuals who volunteer in non-profit associations, organisations or public institutions.
Conditions for the voluntary work allowance
The following conditions must be met to claim the voluntary work allowance:
- Part-time work: The voluntary work must not exceed one third of the working hours of a comparable full-time job.
- Charitable, benevolent or religious purposes: The work must promote these purposes.
- No double funding: No other tax exemption, such as § 3 No. 12 EStG (expense allowances), may have been claimed for the income.
Distinction from the trainer allowance
The voluntary work allowance only applies if the trainer allowance (§ 3 No. 26 EStG) is not used. The trainer allowance is up to 3.000 Euro per year and applies to work in the educational or care sector, such as trainers or educators. The voluntary work allowance, on the other hand, applies to organisational work, such as in administration or logistics.
Work-related expenses in connection with the voluntary work allowance
Work-related expenses incurred in connection with voluntary work can only be deducted for tax purposes if they exceed the voluntary work allowance of 840 Euro. This means that only the exceeding amount can be claimed as work-related expenses.
Voluntary work allowance at vaccination and testing centres
From 2020 to 2023, voluntary helpers at vaccination and testing centres could benefit from tax relief. For those involved in the administration and organisation of these centres, the voluntary work allowance of 840 Euro per year applies. Individuals directly involved in carrying out vaccinations or tests (e.g. through information or testing) can claim the trainer allowance of up to 3.000 Euro per year.
Tax applicability of the voluntary work allowance
The tax exemption through the voluntary work allowance is only possible for activities in non-profit organisations or with public employers such as federal states or municipalities. It does not apply to activities in private organisations such as medical practices or private test centres.
Legal ruling: Non-profit status and legal entities under public law
According to a ruling by the Federal Fiscal Court on 08.05.2024 (BFH, VIII R 9/21), the work must only serve charitable, benevolent or religious purposes for the voluntary work allowance if it is carried out in a tax-privileged organisation or a non-profit association. If the work is carried out at a legal entity under public law (e.g. municipal administration), this is sufficient to claim the voluntary work allowance.
