Field help:
Operating income as a small business owner subject to VAT tax (according to sect. 19 para. 1 Value Added Tax Act (UStG)
Enter your operating income with the gross amount – including amounts you received without VAT.
What should be included here?
- Actual sales from your self-employed or business activities.
- Only income that you actually received in the year 2025.
What should not be included?
- No "estimated" or "fictitious" income, such as the private use share of a company car.
When does the small business regulation apply?
You can apply the regulation according to § 19 para. 1 UStG if:
- Your gross turnover in the previous year (2024) was not higher than 25.000 Euro, and
- Your turnover in the current year (2025) is not expected to be higher than 100.000 Euro.
Consequences of the small business regulation:
- You may not show VAT separately in your invoices.
- You do not have to pay VAT to the tax office.
- You cannot claim input tax from incoming invoices.
- In invoices for small amounts (up to 250 Euro), you may not specify a VAT rate.
Important note:
If you still show VAT in your invoices, even though you are a small business, this is considered an unauthorised tax statement (§ 14c UStG). In this case, you would still have to pay the VAT to the tax office – however, your customer cannot deduct it as input tax.
