BAFA funding for tax firms: Why it does not apply – and what helps instead

In short: tax advisory firms cannot use the BAFA consulting grant. The funding guideline explicitly excludes companies and liberal professions active in tax advisory, auditing, legal or management consulting — regardless of the consulting need. For introducing AI in the firm, INQA-Coaching with an 80% grant is usually the relevant option.

Why firms are excluded from BAFA funding

According to section 3.2 of the guideline “Funding of management consulting for SMEs”, not eligible to apply:

• tax advisors and tax advisory firms,
• auditors and accounting auditors,
• attorneys, notaries,
• insolvency administrators,
• Management and business consultancies and those engaged in similar advisory or training activities.

The exclusion depends on the field of activity, not on the subject of the planned consulting. Consulting on AI, client communication or digitalization does not change that. Any law firm that submits a BAFA application risks rejection — or, in the worst case, a repayment claim.

The alternative: INQA coaching for law firms

The INQA-Coaching of the Federal Ministry of Labour and Social Affairs supports changes in work organization and personnel policy that are related to digitalization in the company — with 80% grant for up to twelve consulting days, maximum €11,520. Members of the liberal professions are expressly eligible to apply. Only firms that themselves advise on personnel policy or work organization are excluded.

For a tax advisory firm, this usually means: eligible if it has

• fewer than 250 employees and annual revenue of no more than €50 million,
• has been on the market for at least two years,
• has at least one full-time position subject to social insurance contributions (excluding trainees, mini-jobs, and management),
• has not yet participated in INQA-Coaching.

Whether your firm is suitable in an individual case — for example, if you also offer HR consulting — is clarified in the free initial consultation at an INQA advisory center. Coaching vouchers are available until June 30, 2028.

What can be addressed in INQA-Coaching at the firm

Funding is not provided for a software project, but for the change process with the team: How do roles and workflows change when routine work falls away? Typical topics include:

• Client communication reorganized with an AI as the first point of contact
• Receipt capture automated and the freed-up time allocated sensibly
• Client documents with an AI document searchmake discoverable
• structure onboarding of new employees and knowledge transfer within the team

Licenses, software and technical setup are not subsidized through INQA or BAFA – only the consulting and coaching services are funded.

And your clients?

For your clients, it is different: A craft business or retailer can receive the BAFA consulting grantfor use in their own management consulting – with 80% in the new federal states as well as the Lüneburg and Trier regions, otherwise with 50%, and only for applications submitted by 31.12.2026. However, consulting that primarily concerns tax issues, annual financial statements, or bookkeeping is not eligible for funding there.

Frequently asked questions about funding for tax firms

Can tax firms use the BAFA consulting grant?

No. Under section 3.2 of the BAFA guideline, tax advisory services are among the activities whose companies and self-employed professionals are not eligible to apply – regardless of the consulting topic.

Does the exclusion also apply to law firms and auditing firms?

Yes. Also excluded are auditors and sworn auditors, lawyers, notaries, insolvency administrators, as well as management and business consultancies.

Can a tax advisory firm use INQA-Coaching?

As a rule, yes. Freelance professions are eligible to apply; only businesses that themselves advise on personnel policy or work organisation are excluded. Requirements include, among others, two years on the market and at least one full-time position subject to social security contributions.

Is the AI software itself funded?

No. INQA-Coaching and BAFA funding subsidise the consulting or coaching service, not licences or technical implementation.

Status: September 2026. Sources: BAFA funding guideline “Funding of management consulting for SMEs” (as amended on 12/12/2024), no. 3.2; INQA-Coaching guideline of 12/06/2026, no. 3.2.