Duration of the waiver of the small business regulation

The continuation of the waiver of the application of the small business regulation after the expiration of five years is not a renewed waiver and thus does not bind again for five years.

Anyone wishing to declare VAT and claim input VAT deduction as a small VAT entrepreneur is bound by this waiver for at least five years. The Federal Fiscal Court has now clarified that this initial waiver continues to be effective until it is expressly revoked by the entrepreneur. The further waiver after the expiry of the five-year period is therefore not a new waiver that would again trigger a five-year commitment, but merely a continuation of the initial waiver. Even if the small business turnover limit is temporarily exceeded, this does not constitute a revocation of the waiver or otherwise invalidate the original waiver. It is therefore possible to revoke the waiver and apply the small business regulation at any time after the initial five-year period has expired.