Should operating income be stated net or gross?

If you are liable for VAT, you should generally declare your VAT-liable business income using the net amount – excluding VAT. The VAT on this amount is recorded separately as business income.

Example: You issue an invoice for 1.190 Euro including 19% VAT and receive the full amount:

• Net business income: 1.000 Euro
• Collected VAT: 190 Euro

What applies to small businesses?

If you apply the small business regulation under § 19 UStG, you generally do not show VAT separately. In the EÜR form, enter your business income with the total amount actually received.

For 2025, the small business regulation generally applies if your total turnover in the previous year did not exceed 25.000 Euro and does not exceed 100.000 Euro in the current year. If you start a new activity in 2025, a limit of 25.000 Euro applies for that year.

Important: If the relevant turnover limit is exceeded during the current year, the turnover that exceeds the limit may already be subject to regular taxation.

When must business income be declared?

For the cash method of accounting, the principle of receipt generally applies. Business income is usually attributed to the year in which you actually have access to the money.

An exception applies to regularly recurring income around the turn of the year. If such income is due and actually paid within ten days before or after the turn of the year, it is attributed to the year to which it economically belongs.

How is tax-free business income treated?

Tax-free business income may also need to be recorded as business income in the EÜR form. To ensure they do not increase taxable profit, they are subsequently deducted during profit calculation.

For 2025, the following entries apply in particular:

• Line 78: tax-free income under § 3 Nos. 26, 26a and 26b EStG, for example from eligible part-time or voluntary activities,
• Line 79: other already recorded tax-free business income under § 3 EStG,
• Line 80: tax-free restructuring gains under § 3a EStG.

Income subject to the partial income procedure under § 3 No. 40 EStG is not corrected in line 79. For these cases, a separate correction is provided in line 94 of the EÜR 2025 form.

What allowances apply in 2025 for part-time and voluntary activities?

Certain income from part-time or voluntary activities may remain tax-free in 2025:

• Trainer allowance: up to 3.000 Euro per year for eligible part-time activities, such as trainers, instructors, educators, or part-time carers (§ 3 No. 26 EStG).
• Volunteering allowance: up to 840 Euro per year for other eligible part-time activities in the charitable, benevolent, or ecclesiastical sector (§ 3 No. 26a EStG).
• Expense allowances for voluntary supervisors: These may be tax-free under § 3 No. 26b EStG. Together with tax-free income under § 3 No. 26 EStG, the allowance of 3.000 Euro in total must not be exceeded.

If you only receive certain tax-free income from an eligible part-time or voluntary activity, do not claim business expenses, and have already declared the income and tax-free amount in your income tax return, you can waive submitting an EÜR form for this activity.