Concept and definition of administrative fees
Administrative fees are public-law monetary payments levied by administrative bodies, particularly authorities, for individually attributable public services. The collection of administrative fees serves the purpose of shifting the costs for administrative actions, particularly applications, permits, information, or other administrative services, wholly or partly onto the initiator of the official action.
In contrast to taxes and private-law charges, administrative fees always require a direct cause by an individually identifiable person (administrative customer) and are directly connected to a specific administrative service.
Legal foundations of administrative fees
Statutory foundations
The collection of administrative fees is generally regulated by law. The legal regulations are essentially found in the following laws and ordinances:
- Administrative cost laws of the states and the federal government (e.g., Federal Administration Cost Act – VwKostG, since 2013 replaced by the Federal Fees Act – BGebG)
- Special fee schedules of individual authorities or administrative units (e.g., Fee schedule for identity cards)
- Specialist laws with specific fee regulations (e.g., Building Code, Road Traffic Act)
- Municipal charges laws and municipal fee statutes
Administrative fees may only be levied on the basis of a statutory provision in accordance with the principle of statutory reservation (Art. 20 para. 3 Basic Law).
Federal Fees Act (BGebG)
For federal authorities, the Federal Fees Act is the central legal regulation. It defines terms, governs requirements, principles of assessment, origination, due date, and the procedure for determining and collecting administrative fees.
State legal provisions
The states have their own administrative cost laws, which exist alongside federal law. In addition, there are often municipal regulations, such as municipal fee schedules for services at the municipal level.
Distinction from similar legal terms
Administrative fees vs. taxes
While taxes are monetary payments with no entitlement to an individual service and are intended to finance public tasks, administrative fees are always connected to a specific administrative action that can be attributed to the individual fee debtor.
Administrative fees vs. contributions
Contributions are levied for the opportunity to use a public facility or service, regardless of whether it is actually used. In contrast, administrative fees require specific, individual utilization.
Administrative fees vs. private-law charges
Administrative fees are of public-law nature and are based on an act of sovereign authority. In contrast, private-law charges result from civil law contracts.
Types and classification of administrative fees
Administrative fee as an umbrella term
In a broader sense, several types of fees are grouped under administrative fees, in particular:
- Administrative fees in the narrower sense: Charges for individual official acts (e.g., issuance of a certificate)
- Usage fees: For the use of public facilities and installations (e.g., libraries, cemeteries)
- Examination fees: For the conduct of examinations (e.g., driving license examination)
- Approval fees: For granting permissions or authorizations (e.g., building permit)
Determination and assessment principles
Administrative fees may be assessed as fixed amounts, according to value in dispute, or based on time spent. The relevant legal provisions in laws or fee schedules are decisive. Often, a distinction is made between flat-rate fees per case and fee ranges (minimum and maximum fee).
Principles of assessment
The amount of the administrative fee must be proportionate to the administrative effort and may not be aimed at generating revenue, unless expressly permitted by the legislator (principle of cost coverage and equivalence principle).
Exceptions and fee exemptions
Certain administrative actions are exempt from fees by law or upon application (e.g., official assistance, social matters, administrative services to those in need).
Origination, due date, and legal consequences of the administrative fee
Factual basis for origination
The administrative fee generally arises upon fulfillment of the fee-liable administrative act or in accordance with the relevant fee schedule. In some cases, an advance payment obligation can be stipulated.
Due date and enforcement
The administrative fee becomes due upon notification of the fee notice and is usually to be paid within a specified period. In case of non-payment, the authority can initiate enforcement measures, such as reminders and execution proceedings.
Legal remedies
The affected person may lodge a legal remedy (e.g., objection, legal action) against fee notices and their amount. Judicial review particularly relates to the legal basis, appropriateness, and determination of the fee.
Examples of application
Typical cases in which administrative fees are levied include:
- Issuance of identification documents or certificates
- Granting of building permits
- Registration of motor vehicles
- Conduct of administrative examinations (e.g., expertise assessments)
- Business registration and deregistration
Significance and purpose of administrative fees
Administrative fees primarily serve to cover the costs of services provided by the administration. They also act as a regulatory instrument by helping to prevent unnecessary or abusive use of administrative services. The collection of administrative fees helps ensure a fair distribution of costs between the general public and individual originators.
Literature references
- Federal Fees Act (BGebG)
- Administrative cost laws of the states
- Municipal charges laws
- Relevant commentaries and specialist literature on public administration and fee law
Note: The current legal situation, in particular legal amendments or differing regulations in individual federal states, must always be taken into account.
Frequently asked questions
Who is authorized to levy administrative fees?
In principle, public-law corporations are authorized to levy administrative fees, in particular the federal government, states, municipalities, and other legal entities under public law, insofar as they have been assigned corresponding tasks and granted fee collection rights by law, legal ordinance, or statute. The legal basis for levying administrative fees is usually found in special fee schedules or state-specific administrative cost laws. Furthermore, in individual cases, a separate statutory basis of authority may be required for an authority to levy fees for its official acts. Privately organized companies and natural persons are not entitled to levy administrative fees within the meaning of public law.
According to which criteria is the amount of an administrative fee determined?
The amount of an administrative fee is primarily determined by the relevant fee law, which must be regulated by law or legal ordinance. The assessment is often based on fixed rates (fixed fees) or within a specified range (range fees). The decisive criteria for the amount of the fee are usually the administrative effort, the economic value or the interest in the official act, as well as the extent and duration of the authority’s activity. The cost coverage principle and equivalence principle are decisive in this context. If an authority exceeds the prescribed range or lacks legal grounds, the corresponding fee collections are unlawful.
Are administrative fees subject to judicial review?
Administrative fees can be fully reviewed by courts, particularly in the context of contesting a chargeable administrative act. Judicial review extends both to the formal and substantive legality of the fee collection as well as to its appropriateness and definiteness. Courts examine in particular whether a sufficient legal or statutory basis exists, whether the fee amount was calculated correctly, and whether the fundamental right to effective legal protection is upheld. Moreover, the court reviews compliance with the constitutional prohibition of excess and the principle of equal treatment.
What legal remedies are available against an administrative fee notice?
An objection can generally be lodged against a notice of administrative fees, unless the special law expressly provides for a different administrative legal process or a preliminary procedure is excluded. After an unsuccessful objection procedure, legal action may be brought before the competent administrative court. The affected person may challenge the amount of the fee, the general obligation to pay fees, or the entire fee notice. Deadlines and formal requirements are governed by the relevant administrative procedure regulations, in particular the Administrative Court Procedure Act (VwGO).
Are there circumstances in which administrative fees are waived or reduced?
Administrative fees are waived or reduced when this is expressly provided by law. Examples include exemption rules for certain recipients of social benefits, for non-profit organizations, or for special administrative measures in the public interest. Furthermore, considerations of equity at the discretion of the authority can also lead to fee reductions or exemptions, especially if payment would constitute unreasonable hardship. The relevant special or municipal fee schedules contain further details.
Do claims for administrative fees become time-barred?
Claims for administrative fees are subject to the general statute of limitations, the period for which is generally governed by the provisions of the Civil Code (§ 195 BGB – standard limitation period of three years), unless special statutory limitation regulations apply. The period begins at the end of the year in which the claim arose and the authority became aware of it or should have become aware of it without gross negligence. Upon expiry of the limitation period, the claim for payment of the administrative fee is no longer legally enforceable.
To what extent does the cost coverage principle determine the amount of administrative fees?
The cost coverage principle requires that administrative fees are, in principle, set at such a level as to cover the costs incurred by the fee-liable official act, but must not be exceeded. Overcovering the incurred expenses is not permitted and violates the equivalence principle as well as the limits of statutory fee authority. However, full coverage of all costs is not always mandatory, since social or public interests may allow for partial coverage. The calculation of the fees must be documented by the administration and is subject to judicial review in case of doubt.
