The Federal Ministry of Finance (BMF) has published the latest collection of standard rates, which is based on data from the year 2025. It serves as a tool for tax authorities to verify the revenue and profits of business owners and, if necessary, to estimate them in the absence of other documentation. Important! The gross profit margins, gross profit markups, and semi- and net profits listed in the collection of standard rates are intended to generalize specific circumstances.
Consequence: When taking a general approach—as is the case with the collection of standard rates—it is naturally impossible to take all conceivable effects into account. This means that, in each individual case, it must be determined whether and to what extent adjustments should be made when applying the standard rates. The inclusion of ranges in the collection of standard rates is also helpful in this regard. This means that when applying the standard rates, the individual circumstances of each business must be taken into account. In times of economic crisis, there can be both negative and positive effects on a business’s economic performance. It is therefore important to pay particular attention to an individualized assessment.
While the benchmark rates do not apply to everyone, they do apply to a wide range of industries. If a business owner’s figures fall significantly outside the benchmark rates, they should expect an audit by the tax office. It is important to check in advance (preferably when preparing the balance sheet or income statement) whether the operating results fall within the standard rates. If they fall outside the range or are at the lower end, the reasons for this should be identified.
What the individual columns in the collection of standard rates mean
The figures listed there represent the Range again, and the number listed below it corresponds to the Average value:
- Gross Profit Margin is the percentage Serve on the cost of goods sold. For example, if goods or materials worth €1,000 are used and there is a gross profit markup of 50%, the markup is (€1,000 × 50% =) €500.
- Under Gross profit shows the percentage of the gross profit relative to the gross value of all things . For example, if a service is provided for 3,000 € (excluding sales tax) and the gross profit margin is 68%, the cost of goods sold is 3,000 € – (€3,000 × 68%) = €960.
- Gross profit for retail businesses is Gross Profit I and for craft and mixed-trade businesses with Crude Profit II . Gross Profit II includes not only the cost of goods and materials but also manufacturing wages.
- Half profit is the gross profit minus operating expenses, excluding salaries, wages, and expenses for owned or rented premises, as well as business tax.
- Net Income is the net profit minus the operating expenses that have not yet been deducted.
Important! According to established case law, where accounting records are formally in order, an estimate of profits or revenue may generally not be based solely on the fact that the reported profits or revenue deviate from the standard rate table. If no books are kept for a business that is required to maintain accounting records, or if the accounting records are not in order, the profit must be estimated taking into account the circumstances of the individual case (applying standard rates where appropriate). However, there is no entitlement to be taxed according to standard rates.
The standard rates also apply to taxpayers who calculate their profit using the income-surplus method. To this end, the necessary adjustments must be made (including, where applicable, converting actual income and expenses to target amounts, neutralizing value-added tax, and allocating extraordinary or out-of-period expenses and revenues to the year to which they economically belong). If necessary, changes in inventory (e.g., inventory of goods, accounts receivable, and accounts payable) must also be determined or estimated and taken into account as part of the standard rate assessment.
Note: A case is pending before the Federal Fiscal Court (BFH) under case number X R 14/24, which addresses the question of whether the Federal Ministry of Finance’s official collection of standard rates constitutes a suitable basis for estimates and whether the collection of standard rates for restaurants and other food service establishments can also be applied to food trucks located in rural areas.
LINK to the BMF website: 2025 Collection of Standard Rates