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.

Should operating income be stated net or gross?

What voting rights do I have with the small business regulation?

If you meet the conditions of the small business regulation under § 19 UStG, your turnover is generally exempt from VAT. You do not show VAT on your invoices and, in return, you cannot generally deduct input tax from your business expenses.

However, you can voluntarily opt out of the small business regulation and switch to regular VAT taxation.

What are the turnover limits for 2025?

The following limits apply for the small business regulation in 2025:

• Previous year: Total turnover must not have exceeded 25,000 Euro.
• Current year: Total turnover must not exceed 100,000 Euro.

To apply the small business regulation in 2025, your relevant total turnover in 2024 must not exceed 25,000 Euro.

Unlike the previous regulation, the limit for the current year no longer depends on a turnover forecast. The actual turnover achieved is decisive.

What happens if I achieve more than 100,000 Euro turnover in 2025?

The limit of 100,000 Euro is a fixed upper limit. Once you exceed this in the current year, the tax exemption ends.

Important: The turnover that exceeds the 100,000 Euro limit is fully subject to VAT. The turnover made earlier in the year remains tax-free.

Example: Your total turnover is currently 80,000 Euro. You then make a further turnover of 30,000 Euro and receive the payment. This turnover exceeds the limit. The entire 30,000 Euro is therefore subject to regular VAT taxation.

You should therefore regularly check your turnover during the year.

What applies to a business start-up in 2025?

If you start your business activity during the year 2025, a turnover limit of 25,000 Euro applies for the start-up year. There is no projection to an annual turnover.

The turnover that exceeds the 25,000 Euro limit is generally subject to regular VAT taxation.

What must be included on an invoice from a small business owner?

As a small business owner, you may not show VAT separately for your tax-exempt turnover under § 19 UStG.

Your invoice must include at least the following information:

• Your full name and address,
• Name and address of the recipient,
• Your tax number, VAT identification number or small business identification number,
• The date of issue,
• Type and scope of the service or quantity and type of goods supplied,
• The total amount and
• A note that the tax exemption for small businesses under § 19 UStG applies to the turnover.

A possible wording is:

“Tax exemption for small businesses according to § 19 UStG.”

A specific wording is not required. The note must clearly indicate that the small business tax exemption is applied.

Attention: If you, as a small business owner, still show VAT separately, the VAT shown may be owed to the tax office.

Do small business owners have to issue e-invoices?

Small business owners can continue to issue their invoices as so-called other invoices from 2025, for example as paper invoices or PDF files. They are not obliged to issue a structured e-invoice.

However, they must generally be able to receive e-invoices from other businesses.

Can I voluntarily opt out of the small business regulation?

Yes. If you meet the conditions of the small business regulation, you can voluntarily waive the tax exemption and tax your turnover regularly.

Then:

• You show VAT on your invoices,
• pay the VAT to the tax office, and
• can generally deduct the input tax from your business incoming invoices.

Waiving the regulation can be interesting, for example, if you make high investments resulting in significant input tax amounts or if you mainly provide services to businesses entitled to deduct input tax.

The waiver binds you for at least five calendar years. A waiver declared for 2025 can be declared to the tax office until the last day of February 2027 and will then apply retroactively from the beginning of 2025.

Do I have to submit a VAT return as a small business owner?

Small business owners are generally not required to submit VAT advance returns or an annual VAT return.

Exceptions apply, in particular, if the tax office explicitly requests a return or if you owe VAT due to special regulations.

If you exceed the relevant turnover limit during the year and the small business regulation ends as a result, the normal VAT declaration obligations generally apply from that point on.

Does the reverse charge procedure also apply to small business owners?

Yes. The small business regulation does not generally protect against owing VAT as a service recipient. In certain cases, the so-called reverse charge procedure under § 13b UStG may apply.

This can be the case, for example, with certain services provided by a foreign business or under special conditions for construction services.

For construction services, however, the tax liability does not automatically transfer to the recipient for every small business owner. This generally requires that the recipient is also a business and provides corresponding construction services on a sustainable basis.

If the reverse charge procedure is to be applied, you must pay the VAT as a service recipient to the tax office, even if you otherwise use the small business regulation. As a small business owner, input tax deduction is generally not possible.

What voting rights do I have with the small business regulation?

How can I correctly determine the private use value of my company car?

The tax treatment of private use of your vehicle initially depends on the percentage of business use.

Business use includes not only directly business-related journeys but also travel between home and workplace as well as family trips home as part of a business-related second household.

• More than 50% business use: The vehicle is part of the necessary business assets.
• 10% to 50% business use: You can allocate the vehicle to your business assets or your private assets. If allocated to business assets, it is considered discretionary business assets.
• Less than 10% business use: The vehicle is part of private assets.

What applies if the vehicle is part of business assets?

If the vehicle is part of business assets, the vehicle costs are initially considered as business expenses. These include, for example, depreciation or leasing costs, fuel or charging electricity, insurance, vehicle tax, and maintenance and repair costs.

If you also use the vehicle privately, this private share must be subsequently adjusted. The private usage value increases the profit as a withdrawal.

Special deduction restrictions also apply for travel between home and workplace and for family trips home. However, these journeys are not considered private trips.

How is the private usage value determined?

The method you can use depends particularly on the extent of business use:

• 1. Flat-rate method: If the vehicle is used for business purposes more than 50% of the time, you can generally determine the private usage value using the 1% method.
• 2. Logbook method: If the vehicle is used for business purposes more than 50% of the time, you can allocate the actual costs using a properly maintained logbook instead of the 1% method.
• 3. Actual costs for 10% to 50% business use: If the vehicle is part of business assets, the 1% method is excluded. The private usage value is determined based on the actual vehicle costs attributable to private trips.
• 4. Cost capping: When applying the 1% method, the flat-rate values can be limited to the actual vehicle costs incurred.

Note: Special benefits apply to electric and certain plug-in hybrid vehicles in 2025. These are taken into account in the respective calculation method.

What applies to VAT?

The private use of a business vehicle may also be subject to VAT. This is particularly relevant if the vehicle or the associated costs were eligible for input tax deduction.

The VAT calculation may differ from the income tax calculation. This is especially true for electric and hybrid electric vehicles.

How can I correctly determine the private use value of my company car?

Private use of company car: (1) Flat rate method for business use

If you use your vehicle for business purposes more than 50% of the time, you can generally calculate private use using the 1% method. You do not need to provide individual proof of your private journeys.

For each month, 1% of the gross list price is generally considered as private use. The relevant amount is the domestic list price at the time of first registration, including extras and VAT – not the actual purchase price paid.

Private usage value = gross list price × 1% × months of use

Example: The gross list price is 30,000 Euro:

• 30,000 Euro × 1% = 300 Euro per month.
• For 12 months, the private usage value is 3,600 Euro.

If the flat-rate usage value exceeds the relevant actual vehicle costs, the so-called cost cap may apply.

How are journeys between home and the primary place of business taken into account?

Journeys between home and the primary place of business are subject to special regulations. When using the 1% method, the following amount is generally calculated:

Gross list price × 0.03% × distance in kilometres × months of use

This amount is not simply an additional private share. For these journeys, the distance allowance can still be deducted as a business expense. For 2025, it is 0.30 Euro per kilometre for the first 20 kilometres and 0.38 Euro from the 21st kilometre.

For eligible electric and hybrid electric vehicles, the appropriately halved or quartered gross list price is used for the 0.03% calculation.

What are the special conditions for electric vehicles in 2025?

For pure electric vehicles with zero CO2 emissions, only a quarter of the gross list price can be used with the 1% method. Economically, this corresponds to a rate of 0.25% of the full gross list price per month.

For electric vehicles purchased or leased in 2025, the following price limits apply:

• Purchase or lease from 01.01.2025 to 30.06.2025: Gross list price up to 70,000 Euro.
• Purchase or lease after 30.06.2025: Gross list price up to 100,000 Euro.

Example: For an eligible electric vehicle with a gross list price of 50,000 Euro, the private usage value is 125 Euro per month:

50,000 Euro × 0.25% = 125 Euro.

If the electric vehicle exceeds the relevant price limit, half of the gross list price is generally used if the legal requirements are met. This corresponds to a monthly rate of 0.5% of the full gross list price.

Note: For vehicles purchased or leased before 2025, different price limits may apply.

What are the special conditions for plug-in hybrids in 2025?

For a plug-in hybrid purchased or leased in 2025, generally only half of the gross list price is used if at least one of the following conditions is met:

• CO2 emissions of no more than 50 grams per kilometre or
• pure electric range of at least 80 kilometres.

With the 1% method, this corresponds to a monthly rate of 0.5% of the full gross list price.

For plug-in hybrids purchased or leased before 2025, the conditions at the time of purchase or lease apply.

How is VAT calculated?

Private use may be subject to VAT as a non-cash benefit, provided the vehicle or vehicle costs were eligible for input tax deduction.

If private use is calculated using the 1% method, this value can also be used for VAT for simplification purposes. Since not all vehicle costs are subject to VAT, the value may be reduced by 20% as a flat rate.

Example: The private usage value is 3.600 Euro:

• 3.600 Euro minus 20% = 2.880 Euro.
• 19% VAT on 2.880 Euro = 547.20 Euro.

Important: The income tax reduction or quartering for electric and hybrid electric vehicles does not apply to VAT.

Private use of company car: (1) Flat rate method for business use

Private vehicle use: (2) logbook method

With the logbook method, you calculate the private use of your company vehicle based on the actual vehicle costs incurred and the actual kilometres driven.

For a vehicle used for business purposes more than 50% of the time, the logbook method is an alternative to the 1% method. A proper logbook is required.

Private usage value = Total costs × private usage percentage

You calculate the private usage percentage as follows:

Private kilometres driven ÷ total mileage × 100

Example: You drive a total of 25,000 km in the year, of which 10,000 km are private. The relevant vehicle costs amount to 8,000 Euro:

• Private usage percentage: 10,000 km ÷ 25,000 km × 100 = 40%.
• Private usage value: 8,000 Euro × 40% = 3,200 Euro.

Which journeys count as private trips?

Private trips include, for example, shopping, leisure, and holiday trips.

Journeys between home and the first place of business are not considered private trips. They must be recorded separately. The same applies to family trips home as part of a business-related double household.

What are the requirements for the logbook?

The logbook must be kept continuously, promptly, completely, and in a closed form.

For business trips, the following must be specified:

• Date,
• Odometer reading at the start and end of the trip,
• Destination,
• Purpose of the trip, and
• Business partners or customers visited.

For private trips, it is generally sufficient to state the kilometres driven. For journeys between home and the first place of business, a brief note is sufficient.

An electronic logbook is also possible. Subsequent changes must be excluded or documented in a traceable manner.

Which costs are taken into account?

The actual vehicle costs incurred are taken into account for the calculation. These include, for example:

• Depreciation (AfA) or leasing costs,
• Fuel or charging electricity,
• Maintenance and repairs,
• Insurance,
• Vehicle tax, and
• Other running vehicle costs.

The costs included in the calculation must be proven. An estimate of missing expenses may result in the logbook method not being recognised. The Federal Fiscal Court has confirmed this, particularly for estimated fuel costs not supported by receipts (BFH ruling of 15.12.2022, VI R 44/20).

How are journeys between home and the first place of business taken into account?

These journeys are not part of the private usage percentage. The actual vehicle costs incurred for them are determined separately using the logbook.

As a business expense, only the travel allowance is generally deductible. For 2025, it is 0.30 Euro per kilometre for the first 20 kilometres and 0.38 Euro from the 21st kilometre.

What are the special conditions for electric vehicles in 2025?

Certain electric vehicles are also tax-advantaged with the logbook method. Unlike the 1% method, the gross list price is not directly reduced. Instead, the purchase costs or the depreciation on them, or comparable leasing and rental costs, are only partially taken into account.

For purely electric vehicles purchased or leased in 2025:

• 01.01.2025 to 30.06.2025: For a gross list price up to 70,000 Euro, the eligible costs are only considered at a quarter.
• After 30.06.2025: The price limit for the quarter rate is 100,000 Euro.

If the gross list price exceeds the relevant limit, the eligible costs are generally considered at half if the legal requirements are met.

Running costs such as electricity, insurance, or maintenance are generally not halved or quartered.

What are the special conditions for plug-in hybrids in 2025?

For a plug-in hybrid purchased or leased in 2025, the purchase costs or comparable leasing or rental costs are generally only considered at half if at least one of the following conditions is met:

• CO2 emissions of no more than 50 grams per kilometre, or
• A purely electric range of at least 80 kilometres.

For vehicles purchased or leased before 2025, the conditions at the time of purchase or leasing apply.

How is VAT calculated?

The private usage percentage determined using the logbook can also be used for VAT. However, only costs subject to input tax are considered.

Costs without input tax – such as vehicle tax or certain insurance premiums – are deducted in their actual amount. Unlike the 1% method, there is no flat-rate deduction of 20% for this.

Example: The total costs amount to 8,000 Euro, the private usage percentage is 40%. Of the total costs, 1,000 Euro are not subject to input tax:

• Private usage value: 8,000 Euro × 40% = 3,200 Euro.
• Costs relevant for VAT: 8,000 Euro − 1,000 Euro = 7,000 Euro.
• Private share: 7,000 Euro × 40% = 2,800 Euro.
• VAT: 2,800 Euro × 19% = 532 Euro.

The private usage value is therefore 3,200 Euro. Additionally, 532 Euro VAT must be taken into account.

Important: The income tax halving or quartering for electric and hybrid electric vehicles does not apply to VAT.

Private vehicle use: (2) logbook method

Private use of company car: (3) Pro rata value for 10% to 50% business use

If you use your vehicle for business purposes at least 10% and at most 50%, you can allocate it to your so-called discretionary business assets.

The 1% method may not be used in this case. Instead, private use is calculated based on the actual vehicle costs incurred.

Private usage value = Total costs × private usage percentage

Calculate the private usage percentage as follows:

Private kilometres driven ÷ total mileage × 100

Example: You drive a total of 20,000 km with your company vehicle in the year. Of these, 14,000 km are for private journeys. The relevant vehicle costs amount to 8,000 Euro:

• Private usage percentage: 14,000 km ÷ 20,000 km × 100 = 70%.
• Private usage value: 8,000 Euro × 70% = 5,600 Euro.

The private usage value of 5,600 Euro must be considered as a withdrawal.

Do you need to keep a logbook?

No. Unlike the logbook method, a proper logbook with the strict requirements is not necessary.

However, you must be able to provide evidence or make credible the business and private use. Suitable records include business trip logs, mileage readings, calendars, travel expense reports, or invoices to customers.

The records must clearly show the business and private usage percentages.

What costs are included in the total costs?

The actual vehicle costs incurred are taken into account for the calculation. These include, for example:

• Depreciation (AfA) or leasing costs,
• Fuel or charging electricity,
• Car insurance,
• Car tax,
• Maintenance and repair costs, and
• Other ongoing vehicle costs.

The portion of these costs attributable to private journeys increases the profit as a usage withdrawal.

How are journeys between home and the first place of business considered?

Journeys between home and the first place of business are not considered private journeys. Therefore, they are not included in the private usage percentage.

Since the 1% method is not applied, there is no calculation with 0.03% of the gross list price. Instead, the actual vehicle costs for these journeys are determined:

Total costs × kilometres driven between home and first place of business ÷ total mileage

These costs are not fully deductible as business expenses. The distance allowance is generally deductible.

For 2025, the distance allowance is:

• 0.30 Euro per kilometre for the first 20 kilometres and
• 0.38 Euro per kilometre from the 21st kilometre.

If the actual costs for these journeys exceed the distance allowance, the excess amount may not reduce the profit.

For family journeys home as part of a business-related double household, the following applies: Instead of a calculation with 0.002% of the list price, the actual costs for these journeys are taken into account.

What special regulations apply in 2025 for electric and hybrid vehicles?

Even with business use of 10% to 50%, the tax benefits for certain electric and externally chargeable hybrid electric vehicles apply.

When calculating the actual total costs, depreciation or, in the case of leased or rented vehicles, the leasing or rental rate is only partially taken into account.

For pure electric vehicles purchased or leased in 2025:

• 01.01.2025 to 30.06.2025: For a gross list price up to 70,000 Euro, the subsidised costs are generally only considered at a quarter.
• After 30.06.2025: The price limit for the quarter rate is 100,000 Euro.

For a plug-in hybrid purchased or leased in 2025, the subsidised costs are generally considered at half if the vehicle emits a maximum of 50 grams of CO2 per kilometre or has a purely electric range of at least 80 kilometres.

Ongoing costs such as electricity, fuel, insurance, or maintenance are generally not also halved or quartered.

Note: Different conditions may apply for vehicles purchased or leased before 2025.

How is VAT on private use calculated?

If the vehicle was allocated to the company for VAT purposes and there was a right to deduct input tax, private use may also be subject to VAT.

For VAT, only the costs that entitled to input tax deduction are generally considered. The private share is determined based on actual use.

Costs without VAT, such as car tax or certain insurance premiums, are not included in the VAT calculation.

Important: The income tax halving or quartering of costs for subsidised electric and hybrid electric vehicles does not apply to VAT.

Where do you enter the amounts in the EÜR 2025 form?

Enter the determined private usage value in the EÜR 2025 form under private vehicle use in line 20.

The VAT on this – if VAT is incurred – belongs to the collected VAT amounts and VAT on free withdrawals in line 17.

Private use of company car: (3) Pro rata value for 10% to 50% business use

Private use of company car: (4) Cost ceiling for the flat-rate method

When applying the 1% method, the flat-rate calculated private usage value may be higher than the actual vehicle costs incurred. This can occur, for example, with a fully depreciated vehicle, a cheaply purchased used car, or a leased vehicle.

In this case, the so-called cost ceiling may apply. The flat-rate values are then limited to the actual vehicle costs incurred.

Which costs are considered in the cost ceiling?

The actual vehicle costs include, in particular:

• ongoing vehicle costs such as fuel or charging electricity, insurance, vehicle tax, maintenance and repairs,
• depreciation (AfA) or leasing costs, and
• interest on loans for financing the vehicle.

The actual costs must be proven.

How is the cost ceiling calculated?

If you also use the vehicle for journeys between home and business premises, these journeys must be considered separately in the cost ceiling.

When applying the 1% method, the following amount is generally determined for this:

Gross list price × 0.03 % × distance in kilometres × months of use

The capped private usage value is then generally calculated as follows:

Actual vehicle costs − amount for journeys between home and business premises

The distance allowance can also be deducted as a business expense. For 2025, it is 0.30 Euro per kilometre for the first 20 kilometres and 0.38 Euro from the 21st kilometre.

Example: A company vehicle has a gross list price of 40.000 Euro. The actual vehicle costs amount to 6.000 Euro per year. The vehicle is also used throughout the year for journeys to the business premises 20 km away.

• Private use according to the 1% method: 40.000 Euro × 1 % × 12 months = 4.800 Euro.
• Amount for journeys between home and business premises: 40.000 Euro × 0.03 % × 20 km × 12 months = 2.880 Euro.
• Capped private usage value: 6.000 Euro − 2.880 Euro = 3.120 Euro.

The private usage value is therefore not set at 4.800 Euro, but only at 3.120 Euro.

If the business premises were visited on 200 days, for example, the distance allowance can also be taken into account:

200 days × 20 km × 0.30 Euro = 1.200 Euro.

What applies to electric and hybrid electric vehicles?

If special tax benefits apply to an electric or hybrid electric vehicle, these must also be considered in the cost ceiling.

When determining the relevant total costs, the depreciation is particularly taken into account with the applicable share for the vehicle. If, for example, only a quarter or half of the gross list price is considered for private use, the depreciation relevant for the cost ceiling is also adjusted accordingly.

How is VAT calculated with a cost ceiling?

The cost ceiling for income tax cannot simply be applied to VAT.

If no proper logbook is kept, the private usage share for VAT must be estimated appropriately based on suitable documents. For this purpose, records over a representative period can be used, for example.

If no suitable documents are available, the private usage share is generally set at a minimum of 50 %, unless the circumstances of the individual case suggest otherwise.

For VAT, only the vehicle costs that were eligible for input tax deduction are considered. Costs without VAT are excluded from the assessment basis.

Assessment basis for VAT = vehicle costs subject to input tax × private usage share

VAT of 19 % is generally calculated on this amount.

Important: Journeys between home and business premises are considered business use for VAT purposes and are therefore not attributed to the private usage share.

What applies to a special leasing payment?

A high special leasing payment cannot be used to artificially reduce the cost ceiling in subsequent years.

For the cost ceiling check, a special leasing payment must be spread over the entire term of the leasing contract. This also applies to cash basis accounting.

Example: With a special leasing payment of 30.000 Euro and a term of 36 months, 1/36 of the special payment is generally considered per leasing month for the cost ceiling.

This is different from the deduction of business expenses: In cash basis accounting, a special leasing payment can still be deductible as a business expense in the year of payment under the general conditions. However, for the calculation of the cost ceiling, it is spread over the leasing period.

Where do you enter the cost ceiling in the EÜR 2025 form?

Enter the private usage value determined after the cost ceiling in the EÜR 2025 form under private vehicle use in line 20.

Expenses for journeys between home and business premises are considered in line 72. The deductible distance allowance is entered in line 73.

The VAT on private use – if applicable – is to be considered in line 17.

Private use of company car: (4) Cost ceiling for the flat-rate method

How is private use of telephone and internet taken into account?

How is private use of telephone and internet taken into account?

If you use telephone, mobile or internet for both business and private purposes, only the business-related costs may reduce your profit.

If you have initially recorded the total costs as business expenses, you must account for the private portion as withdrawal for private use.

Private use withdrawal = total costs × private usage percentage

The private usage percentage can be determined using appropriate documents or, if an exact breakdown is not possible, estimated on a reasonable basis. The estimate should be comprehensible.

Alternatively, you can initially only claim the business portion of the telephone and internet costs as a business expense. An additional withdrawal for private use is then not required.

What applies to VAT?

For telephone and internet costs that are both business and privately incurred, VAT can generally only be deducted to the extent of the business portion.

If a business smartphone or other telecommunications device has been assigned to the company and the purchase entitled to VAT deduction, private use may also be subject to VAT.

Does the tax exemption for employees also apply to the self-employed?

No. Employees can use their employer's business telecommunications devices privately tax-free under the conditions of § 3 No. 45 EStG. This tax exemption does not apply to entrepreneurs or self-employed persons who use their own business devices privately.

How is private use of telephone and internet taken into account?

How should private withdrawals of goods be valued?

If you withdraw goods or other assets from your business for private purposes, you must generally value the withdrawal at the partial value. This means the private withdrawal is taken into account as profit-increasing.

The partial value is, simply put, the value that the withdrawn asset has for the business at the time of withdrawal.

What flat rates apply to food?

In certain industries, you can apply the flat rates for withdrawals in kind set by the tax authorities for the private consumption of food and beverages. This means you do not have to record every single withdrawal.

The flat rates apply per person and for the entire calendar year. The following rules apply for 2025:

• No flat rate is applied for children up to the age of 2.
• For children aged 2 to 12, half of the respective flat rate is applied.

The amount of the flat rate depends on the respective industry, such as bakery, butcher, restaurant, or food retail.

Important: The flat rates apply only to food and beverages. Other private withdrawals of goods, such as clothing, electrical appliances, or tobacco products, must generally be recorded individually.

What applies to VAT?

If the purchase of the withdrawn item or its components entitled you to a full or partial input tax deduction, the private withdrawal may also be subject to VAT as a free value transfer.

How should private withdrawals of goods be valued?