Small business
WSB News 23 Jan. 2025

Technical article

WSB informs: News on the small business regulation

"VAT exemption for all!" "No! But for significantly more small businesses!"

Does this also apply to you?

Small but mighty! As a small business owner, you can provide your services VAT-free and do not have to submit advance VAT returns or annual returns to the tax office. In return, however, you are not entitled to deduct input tax.

This small business regulation was extended with the Annual Tax Act 2024 as of 01.01.2025!

You are now also considered a small business if your Total sales
- in the previous calendar year 25,000.00 Euro has not exceeded (previously: 22,000.00 Euro= and
- in the current calendar year 100,000.00 euros does not exceed EUR 50,000.00 (previously: EUR 50,000.00).

Caution - fall-back effect:
As soon as your turnover exceeds 100,000.00 euros, you must switch to standard taxation immediately! (At 25,000.00 euros only in the following year.) You should therefore always monitor your turnover from this point of view during the year.

What else is new?
You can now also in other EU countries be a small business - in accordance with the legal provisions applicable there!
The prerequisite is that your annual Total turnover in the Community territory 100,000.00 euros is not exceeded. In the same way, entrepreneurs based in other EU countries can now also claim the small business regulation in this country.

Also finally clarified:
As a small business owner, you do not have to issue e-invoices - but you do have to receive them!


👉 We will be happy to answer any other questions, big or small, about your new options in a personal consultation. Get in touch with us: www.wsb-berater.com/kontakt


#Small business #VAT #TTotal turnover #EU countries #Invoice #WSB




Contact
Nadja Neubig, Human Resources & Corporate Communications
WSB Wolf Beckerbauer Hummel & Partner Steuerberatungsgesellschaft mbB

Max-Jarecki-Str. 21 | 69115 Heidelberg
Phone: +49 6221 40509-10 | Fax: +49 6221 40509-30

Email: n.neubig@wsb-berater.de


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