What is a small business?
Small businesses put no legal form but a provision in the Sales Tax Act according to §19 UStG. They are subject to Sales tax exemptionbecause they do not exceed certain sales limits. Conversely, this means that the small business regulation is independent of Type of company is.
Usually there are freelancers or small businesses even small business owners. However, the small business regulation can also be used as a GmbH or UG. Die Turnover limits So far, there have been 22,000 euros in the previous year and 50,000 euros the following year. These were As of 01.01.2025, however, increased to 25,000 euros and 100,000 euros.
At the same time, the small business regulation does not automatically mean that double bookkeeping to be able to waive, as this depends on the legal form. For example, a GmbH can be a small business and still balance sheet and have to keep records twice. The small business regulation should not be confused with the small tissue, which is a legal form acts.
What advantages and disadvantages do I have as a result?
Benefits, from the Small business regulation You have to make use of it if you primarily have private customers. And if you have few operating expenses yourself or you have little Use of goods You have. Because the drawback Is that you Without sales tax, you cannot claim input tax. But if you now pay a lot of sales tax on goods for your products, it is worthwhile to pay sales tax and deduct the input tax. A disadvantage may also be that you are not taken seriously as a small company. So did you many b2b customers, it may be useful to dispense with the small business regulation.
One advantage, however, is that you less effort Have in your bookkeepingBecause you also have no Advance sales tax return must submit. You can also sell products to your customers at a lower price because you have the vat You don't have to add to the price. Invoicing is then also less complex.
In addition, yes From 01.01.2025, the obligation e-invoices to receive, and from 2028 also the obligation to send them yourself. Small businesses may continue to issue invoices as PDF or on paper beyond 2028.
What do I have to consider as a small business?
It is important to note that you are on the Small business regulation You can also do without it, even if you could use them. You also tick this in the tax registration questionnaire from the tax office. You are then bound by this decision for five years.
As an entrepreneur, you are also required to keep an eye on your sales. If you expect achieves a turnover of more than 50,000 euros per year in the following year or 100,000 euros from 2025, you shouldn't wait until the number is exceeded first. If the tax office notices that you have not paid the sales tax even though there was appropriate evidence in advance, you must pay it back for the entire year — plus interest. And from a tax point of view, this can even involve tax evasion.
From 2025, it is also new that you must immediately switch to standard taxation as soon as the turnover limit of 100,000 euros is exceeded. Auf invoices You also don't have to show the value added tax, instead you write a Note that you do not collect sales tax in accordance with §19 UStG. With the small business regulation, you don't pay sales tax. Income tax and business tax are waived if the allowances are not exceeded.
