Practical Questions on the New Small Business Regulation: Risks, Administrative Effort, and Opportunities

The new Small Business Regulation in § 19 UStG was revised by the 2024 Annual Tax Act, introducing a shift to a notional tax exemption and adjusting turnover thresholds. § 19a UStG now implements the EU-wide small business regulation in the internal market. The article focuses on practical case scenarios. Key points: Total turnover is based on received payments, and in cases of advance payments, the tax authority’s view may lead to retroactive standard taxation. The European small business regulation aims to eliminate competitive disadvantages for EU entrepreneurs, but VAT may still arise in intra-community transactions, only partially offset by input tax deduction.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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