Tax changes from 2024 for entrepreneurs in Germany

The thresholds at which businesses must prepare balance sheets and double-entry bookkeeping under the tax law have been increased starting in 2024.
Previously there was a turnover limit of EUR 600,000.00 per year, up to which companies were not required to prepare balance sheets, from 2024 a company with a turnover of up to EUR 800,000.00 will not be required to prepare balance sheets.
With regard to the profit generated, the threshold has increased from the previous €60,000.00 to €80,000.00.
If one of these thresholds is exceeded, simple accounting with a profit and loss statement can initially continue until the IRS orders double-entry bookkeeping.
If one of the thresholds has been exceeded and is not expected to be exceeded again in the future, you can apply for an exemption from double-entry bookkeeping with the tax authority.
Unchanged from 2020 is the transition to VAT (Mehrwertsteuer) in Germany by the small businessman (Kleinunternehmer). A small businessman is entitled to VAT exemption if his annual turnover does not exceed the limit of EUR 22,000.00 (until the end of 2019 it climbed to EUR 17,500.00). A small trader can voluntarily switch to VAT, but he must consider whether it is beneficial for him, taking into account all the costs involved and the prices for customers. It is often worth consulting a tax advisor to carefully analyze the benefits and obligations of such a change.