Germany has specific turnover and profit limits that determine the obligation to switch from simplified accounting (Einnahmenüberschussrechnung – EÜR) to full accounting with a balance sheet (Bilanz).
These limits have been changing over the past five years:
| Year | Turnover limit | Profit limit | Balancing obligation |
|---|---|---|---|
| 2020 | 600 000 € | 60 000 € | Yes |
| 2021 | 600 000 € | 60 000 € | Yes |
| 2022 | 600 000 € | 60 000 € | Yes |
| 2023 | 600 000 € | 60 000 € | Yes |
| 2024 | 800 000 € | 80 000 € | Yes |
| 2025 | 800 000 € | 80 000 € | Yes |
As of January 1, 2024, under the so-called “Wachstumschancengesetz,” the limits were raised to:
- 800,000 € turnover per year,
- 80,000 € profit per year.
Important Notes:
- The obligation to switch to full accounting arises when at least one of the above limits is exceeded.
- The switch to balancing occurs only upon receipt of written notification from the tax authority and applies to the tax year following the year in which the limits were exceeded.
- Freiberuflers (e.g., doctors, lawyers) are exempt from full accounting, regardless of their turnover and profits.
