- Increased VAT Exemption Thresholds: The German Ministry of Finance has updated guidance on special VAT rules for small businesses, effective from January 1, 2025, which includes raising the VAT exemption thresholds from EUR 22,000 to EUR 25,000 and from EUR 50,000 to EUR 100,000.
- EU Small Business Scheme Implementation: Amendments introduce provisions allowing taxable persons established in other EU Member States to benefit from VAT exemptions in Germany if their turnover in Germany remains below the exemption thresholds and their total EU turnover does not exceed EUR 100,000.
- Simplified Invoicing and Input VAT Rules: The updated guidance allows VAT-exempt small businesses in Germany to issue simplified invoices without the requirement for electronic issuance, while clarifying that these businesses cannot deduct input VAT on goods and services used for VAT-exempt supplies.
Source: Orbitax
