What is new about the small business regulation in 2025? (Image: Mikhail Nilov, unsplash)
The small business regulation makes the start of independence easier: No sales tax, less bureaucracy, less stress with the tax office.
Sounds good, but also has disadvantages. Because if you stay underneath, you cannot deduct input tax – and for growing companies, the regulation quickly becomes braking. In 2025 new ones apply Sales limitswho decide about who stays in and who has to get out.
Is the model still worthwhile? Or does it cost more in the long term than it saves?
What is the small business regulation?
The Small business regulation is a tax advantage for self -employed and small businesses that do only small sales.
The biggest advantage: There is no sales taxWhich makes bills easier and reduces bureaucratic effort. This means that small entrepreneurs do not have to pay sales tax to the tax office – but also no input tax from business purchases.
The whole thing is regulated in § 19 of the sales tax law (UStG).
So that the regulation can be used, the Do not exceed certain limits:
New sales limits from 2025: More entrepreneurs benefit from the small business regulation
The small business regulation will become even more attractive from 2025 – because sales limits increase significantly. Anyone who makes use of this regulation remains freed from sales tax and not only saves money, but also a lot of paperwork.
The following sales limits apply from 2025:
- previous year: Maximum € 25,000 sales (so far € 22,000)
- Current year: Maximum € 100,000 sales (so far 50,000 €)
Important: Both conditions must be met. If you stay below the € 25,000 limit in 2024, you can use the small business regulation in 2025-even if sales then reach up to € 100,000.
New calculation method: new borders apply “net”
A decisive change affects the type of calculation. The new boundaries apply netso without sales tax. So far, gross amounts have been expected. Converted to the old method, this corresponds to € 29,750 for the previous year and € 119,000 for the current year. This allows significantly more entrepreneurs to use the regulation.
Practical example: This is how the small business regulation works
An independent power in 2024 € 22,000 sales. His business is growing in 2025 and he achieves € 70,000 sales.
Nevertheless, he remains small business owners in both years because the new sales limits are observed. It would only be out of the regulation in 2026 if he was in sales in 2025.
Due to these changes, the small business regulation 2025 becomes a real option for much more self-employed-especially for start-ups, freelancers and small companies that want to save themselves sales tax and administrative effort
| Regulation by 2024 | New regulation from 2025 | |
|---|---|---|
| Sales limit previous year | € 22,000 (gross) | € 25,000 (net) |
| Sales limit on the basis of the year | € 50,000 (gross) | € 100,000 (net) |
| Calculation of the limits | Gross amounts (including VAT) | Net amounts (excl. VAT) |
| Exceeding the border | Change to regular taxation only in the following year | Immediate change to regular taxation |
| Retroactive sales tax liability | No | No |
| New start-up regulation | Sales forecast required for first year | Automatic application without extrapolation |
| Invoicing | No ID of sales tax | No ID of sales tax |
| Bureaucracy easier | No sales tax advance registration required | No sales tax advance registration required |
| EU sales | VAT obligation possible | Tax exemption for small business owners when registering according to § 19a UStG |
| Duty of reporting for EU sales | No | Yes, at the Federal Central Tax Office (BZST) |
| Valid for which companies? | Self -employed, sole trader, small traders | Self -employed, sole trader, small traders |
With the small business regulation, only sales count – not the profit.
A common mistake is that what is left in the end is crucial for the sales limits.
In fact, the tax office only looks at the total income without deduction of costs. The turnover includes everything that a company or self -employed invoice. The profit, on the other hand, is what remains after deduction of all expenses such as material costs, office areas or insurance.
Since the profit is generally significantly lower than sales, you should not be fooled by high operating expenses: Those who come across sales limits lose the small business status – regardless of whether there is actually a lot left at the end of the year or not.
Direct change to sales tax liability from 2025
So far it was like this: Anyone who crossed the sales limits only had to switch to regular taxation the following year. This transition period falls away from 2025.
From now on applies:
- As soon as the € 100,000 limit is exceeded in the current year, the tax exemption does not apply immediately.
- From this point on, sales tax must be shown on invoices and paid to the tax office.
- However, the tax -free sales so far remain untouched – no tax is due retrospectively.
This new rule requires small business owners to monitor their own sales more precisely.
If you approach the limit, you should plan well whether staying in the small business regulation is still worthwhile or whether it makes more strategic use to switch directly to regular taxation.
Relief for new founders: Less bureaucracy at the start
The small business regulation will be easier for new founders from 2025.
Anyone who registers a new company automatically starts as a small business owner – without complicated sales forecasts or conversion to a full financial year.
That means:
- Even if a company is only founded in July, sales no longer have to be extrapolated to a complete year.
- The sales tax liability only applies if actually more than € 25,000 sales in the first year be achieved.
- If the limit is exceeded, it is subject to Only the additional amount Regular taxation – not retrospectively all previous sales.
This change takes the pressure to make exact forecasts from the beginning and significantly makes it easier to start self -employment.
Less paperwork, more focus on business
A great advantage of the small business regulation is the lower bureaucratic effort. Anyone who stays under the new sales limits benefits from:
- Course tax advance registrations: No regular reports have to be submitted to the tax office.
- No sales tax on invoices: Instead, a simple reference to the tax exemption (§ 19 UStG) is sufficient.
- Easy bookkeeping: No complicated billing with input tax deduction is necessary.
For many self -employed, freelancers and small traders, this is an enormous time gain – less administrative effort means more focus on actual business.
International sales now also possible tax -free
Another innovation from 2025: The small business regulation now also applies to cross -border business within the EU. So far, this was a major obstacle, since sales tax liability was often applied to international sales.
In order for this to work, small business owners must note the following steps:
- Registration at the Federal Central Office for Taxes (BZST) For the special reporting procedure according to § 19a UStG.
- Proof of sales limits for the previous year and the current year.
- Regular reporting of tax -free sales within the EU.
This change opens up completely new possibilities, especially for online retailers or digital service providers who sell across Europe.
Conclusion: higher limits, less bureaucracy – but more control necessary
With the new sales limits of € 25,000 in the previous year and € 100,000 in the current year the small business regulation becomes more attractive for many self -employed people. More entrepreneurs can now benefit from the tax exemption without having to forego growth.
However, the new regulation also means: Anyone who exceeds the € 100,000 limit immediately loses the small business status. This makes precise monitoring of sales indispensable.
For many, however, the small business regulation remains the simplest and most efficient way to conduct a small company with minimal bureaucratic effort-and the new EU regulations now also benefit international business models from tax exemption.