Is it worth working at Amazon

Working independently for Amazon Flex - you should know that

With Amazon Flex, Amazon offers a private delivery service in Germany. As a parcel deliverer, you can earn something extra on the side. But as a supplier you don't act privately, but work as a self-employed person. This includes certain costs and risks that are stipulated by law. This article tells you what you should know if you want to work as a freelancer at Amazon Flex.

Do you need self-employed status to work at Amazon Flex?

As a supplier, you are a trader. And as a trader you are self-employed. You have to register your self-employment in advance. This means that you not only have to register your self-employed activity with your tax office, but also apply for a trade license at your local trade office. Because there is no salaried employment relationship. Amazon makes this very clear. Summarized:
Step 1: Register your self-employment with the tax office for tax purposes
Step 2: Applying for a trade license at the trade office.

As a supplier, however, you can decide for yourself when, how often and for how long you want to work and plan your routes independently. However, Amazon points out that this is a part-time job, as the order volume can fluctuate from week to week and therefore full-time employment is not guaranteed.

What things should you keep in mind when starting a self-employed activity like Amazon Flex?

In addition to taxes and duties, you also have to pay for gasoline as well as maintenance and insurance costs for your car yourself.

You also have to pay the social security contributions for health insurance, long-term care insurance, pension insurance and unemployment insurance if you do not have a main job with another employer. As an employee of Amazon Flex, you are also obliged to take out commercial vehicle insurance that covers additional services in accordance with the terms and conditions. You have to subtract all of these costs from your hourly wage in order to calculate the actual net wage.

💡 Tip from Accountable: It is also advisable to take out professional liability insurance. As a supplier, you should have these in any case so that you are not liable for any damage (e.g. damaged goods) with your private assets.

How Much Can You Earn With Amazon Flex?

The hourly earnings at Amazon Flex are currently 25 €. The app then shows you time blocks of 2 or 3 hours that you can book. For a block of 3 hours you get € 75. But if you take longer to deliver everything, your real hourly earnings will decrease accordingly. Of course, you also have to deduct the additional costs mentioned above and pay taxes if necessary.

An example:

After deducting the running costs, you as the supplier still have 10 euros per hour left if you manage your tour within the usual 3-hour time window. If the tours sometimes last much longer than 3 hours, your hourly wage will automatically decrease even further.

As an Amazon Flex package supplier, are you obliged to register a small business?

Yes. You are obliged to register a trade with your local trade office within 90 days of starting work. It should be noted that the small business regulation only applies if you do not exceed the income limit of 22,000 euros in the first year of your activity. In the following year, your income must not exceed the annual limit of 50,000 euros if you want to benefit from the small business regulation.

Which trade for Amazon Flex to get a trade license?

Is the Amazon Flex job tax-free?

If your total income does not exceed the annual limit of 9,744 euros (as of 2021), there are no taxes for the Amazon Flex job. However, this only applies if you no have further income.

As soon as you exceed this exemption limit, you have to pay regular income tax on the income from your work. You must submit your income tax returns to the tax office no later than five months after the end of the year.

The good news is: Since the 2018 tax year, taxpayers can take their time to submit their tax returns until July 31 of the following year. The tax returns for 2020 are therefore not due until July 31, 2021.

💡 Tip from Accountable: With our app you always have the concentrated expertise in tax matters for freelancers at your side. In this article we explain how you can easily automate the taxes and accounting for your Amazon Flex job.

Conclusion

As a supplier of Amazon Flex, you are a self-employed trader and must therefore register your activity with the local trade office. If you work part-time for Amazon and your income does not exceed the income limit of 22,000 euros in the first year, you can make use of the small business regulations and are exempt from sales tax.

It is important to note that there are additional costs for gasoline, maintenance and insurance, which reduce your actual hourly wage and you should therefore calculate exactly whether this activity is worthwhile for you before you start working.