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 as the gross amount here – i.e. including the amounts you received without VAT.

What should be included here?

• Actual sales from your self-employment or business activities.
• Only income that you actually received in the year 2024.

What should not be included?

• No "estimated" or "notional" 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 sect. 19 para. 1 of the Value Added Tax Act (UStG) if:

• Your gross turnover in the previous year (2023) was not higher than 22.000 Euro, and
• Your turnover in the current year (2024) is not expected to be higher than 50.000 Euro.

Consequences of the small business regulation:

• You are not allowed to show VAT separately on your invoices.
• You do not have to pay VAT to the tax office.
• You are not allowed to claim input tax from incoming invoices.
• In invoices for small amounts (up to 250 Euro), you are not allowed to specify a VAT rate.