VAT limits for small businesses in Germany: changes from 2025
Germany applies special VAT rules for small businesses (“Kleinunternehmerregelung”). They allow low‑turnover businesses to use a simplified tax regime. Over recent years the thresholds changed several times; from 2025 an important update takes effect.
Turnover limits 2019–2025
Year‑by‑year development of the limits:
| Year | Max turnover in previous year | Max turnover in current year |
|---|---|---|
| 2019 | €17,500 | €50,000 |
| 2020 | €22,000 | €50,000 |
| 2021 | €22,000 | €50,000 |
| 2022 | €22,000 | €50,000 |
| 2023 | €22,000 | €50,000 |
| 2024 | €22,000 | €50,000 |
| 2025 | €25,000 | €100,000 |
What changes from 2025?
- Net turnover: from 2025, thresholds refer to net amounts (excluding VAT).
- Exceeding the limit: crossing €100,000 in the current year automatically ends small‑business status from that moment.
- EU harmonisation: aligns with EU Directive 2020/285; simplified scheme also accessible for entrepreneurs from other EU countries.
Why this matters
Higher limits reduce paperwork and admin costs for more micro‑businesses.
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