In the beauty industry, chair rental has become a popular alternative to traditional employment. This concept offers studio owners and self-employed beauticians flexibility and entrepreneurial freedom. However, behind this simplicity lie complex legal frameworks. To avoid back payments for social security or VAT, those involved must understand the legal requirements. The following article highlights the central aspects of chair rental, considering the legal status as of August 26, 2026.
Distinction from Bogus Self-Employment and Status Determination
The greatest hurdle in chair rental is the distinction between genuine entrepreneurial independence and dependent employment. According to legal norms, dependent employment exists if the activity is performed according to instructions and integration into the work organization of the instructor is given [§ 7 SGB IV] [1]. For chair renters, this means they must independently determine their working hours, products, and prices. If there are strict requirements from the studio owner, there is a risk of being classified as bogus self-employment (Scheinselbstständigkeit).
To achieve legal certainty, the Clearing House of the German Pension Insurance offers a status determination procedure. This procedure clarifies whether a social security obligation exists in a specific case [DRV-Statusfeststellung] [1]. Such an examination is possible in advance and is strongly recommended to avoid subsequent contribution claims. The decisive factor is always the actual implementation, not just the written agreement.
VAT Treatment of Chair Rental
From a VAT perspective, providing a workplace for a fee generally constitutes the rental of parts of a property. According to legal provisions, this is initially tax-exempt [§ 4 Nr. 12 UStG] [2]. However, the studio owner can opt for VAT, enabling the deduction of input tax from the studio’s running costs. This option is only permissible if the tenant uses the rented object exclusively for transactions that do not exclude the input tax deduction [§ 9 UStG] [2].
Exercising the option for tax liability requires that the transactions are carried out for another entrepreneur for their business. The studio owner must prove that the requirements for this option are met [UStAE, Stand 02.06.2026] [2]. Detailed documentation of the use by the chair renter is essential to avoid disadvantages during tax audits.
Small Business Regulation and Financial Thresholds
Many self-employed beauticians make use of the small business regulation (Kleinunternehmerregelung). This simplifies bookkeeping, as no VAT is shown on invoices and no input tax deduction is possible. The application of this regulation generally requires that the total turnover in the previous calendar year did not exceed 25,000 EUR and is not expected to exceed 100,000 EUR in the current year [§ 19 UStG] [1].
These thresholds must be strictly monitored. If the limit of 100,000 EUR is exceeded in the current year, VAT liability for the following year occurs by law. For founders starting during the year, the expected turnover must be extrapolated to a full calendar year to correctly check the applicability of the regulation.
Administrative Obligations: E-Invoicing and Cash Register Notification
Requirements for digital accounting have increased. Since January 1, 2025, the e-invoice (E-Rechnung) in the B2B sector has been mandatory as a structured format [BMF-FAQ E-Rechnung, Stand März 2026] [3]. Studio owners must be able to receive such invoices. While transitional periods for other formats exist for sending invoices until the end of 2026, exceptions are provided for small-value invoices up to 250 EUR gross and for services by small businesses [3].
In addition, electronic recording systems must meet the requirements of § 146a of the Tax Code (Abgabenordnung). This includes the notification obligation to the tax office. Every system must be reported electronically within one month after acquisition or decommissioning [§ 146a AO] [4]. The procedure was provided in early 2025 and is mandatory for all businesses using electronic cash register systems [BMF-Schreiben vom 28.06.2024] [4].
Practical Conclusion
Chair rental offers attractive opportunities but requires a precise legal classification. Avoiding bogus self-employment through entrepreneurial independence and the correct handling of VAT are the cornerstones of a successful model. As legal requirements in e-invoicing and cash register management rise, contracts should be reviewed regularly. Due to the complexity, specialized advice is essential before implementing a chair rental model.
