Anyone who has completed their income tax or VAT return this year may have come across a new feature: before the free-text field previously used for additional information on the tax return, taxpayers must now first select a specific scenario. This is done using what is known as code 500, a newly introduced tick box on the official forms.
What is the significance of the figure 500?
The free-text field already existed. What is new is that users must now select a reason before entering their text, explaining why they are providing additional information. According to the Federal Ministry of Finance, this structured approach is primarily intended to assist members of the public who do not have tax advice and to make the use of the field clearer.
However, the change caused confusion and raised questions in practice. Many tax advisers and taxpayers wondered whether the tick box created new legal obligations or whether selecting the wrong option could have negative consequences.
DStV and BVL follow up with the BMF
In the spring of 2026, the German Association of Tax Advisers (DStV) and the Federal Association of Income Tax Assistance Organisations (BVL) submitted a joint petition to the Federal Ministry of Finance (BMF). The petition focused on specific questions: Does the tick box give rise to new disclosure obligations? What are the implications of an incorrect or erroneous selection in terms of tax adjustment obligations, procedural rules or even criminal tax law?
The Federal Ministry of Finance provides clear answers
The Federal Ministry of Finance (BMF) responded in a letter dated 18 September 2026 (Ref. IV A 5 – O 1000/05888/028/009) and set out its position clearly. An overview of the key points:
- A purely supportive role: The tick box is provided solely for guidance and has no legal significance in its own right.
- No new disclosure requirements: Code 500 does not give rise to any obligations that did not previously exist.
- No implications for section 153 of the German Fiscal Code (AO): The obligation to correct errors identified at a later date remains unchanged. The tick box does not alter this.
- No implications for Section 173 of the German Fiscal Code (AO): The question of whether new facts come to light at a later date and thus justify an amendment to the tax assessment notice is not affected by the tick box.
- No criminal consequences in the event of an erroneous selection: Anyone who accidentally selects the wrong reason does not risk any consequences under criminal tax law.
What does this mean for taxpayers and advisers?
The clarification from the Federal Ministry of Finance is good news. The new tick box is not a pitfall and does not create any additional risks. Anyone who uses the free-text field and ticks the wrong category need not fear any penalties. The content of the free-text field itself remains the decisive factor.
For tax advisers, the Federal Ministry of Finance’s statement provides greater legal certainty when dealing with the new forms on a day-to-day basis. For clients without tax advice, the tick box helps them to make sensible use of the free-text field in the first place.
Anyone who is unsure as to whether and how additional information should be included in their tax return would be well advised to discuss this with a tax adviser on a case-by-case basis.
Source: Haufe: Tax
This post and the accompanying image were created with the help of AI and have been editorially reviewed.
