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Whether the small-business rule under sec. 19 UStG fits you is orientation here. The Finanzamt checks the turnover limits - in borderline cases add a tax advisor. Not legally binding.
PlusTax

Small Business Tax Check

May you still use the small-business VAT rule - or are you slipping into VAT liability? The Small Business Tax Check tests your turnover against the 2026 thresholds of Section 19 of the VAT Act: 25,000 euros in the previous year and 100,000 euros in the current year. A bar shows how close you are to the limit.

A live look inside

Live preview. It becomes interactive with your account.

What Small Business Tax Check does

The small-business rule under Section 19 is the simplest start for many self-employed people: those who qualify show no VAT on their invoices, need not file advance VAT returns and save much of the bookkeeping effort. The price is the loss of input tax deduction. Whether you may use the rule depends solely on your turnover - and that is exactly what this check tests.

The rule was reformed on 1 January 2025, and these thresholds also apply in 2026. Two figures matter: your total turnover in the previous year must not have exceeded 25,000 euros, and your turnover in the current year must not exceed 100,000 euros. The check measures both and shows via progress bars how much room you have left before a threshold breaks.

An important difference from the old rule: previously the current-year limit was a forecast you had to estimate at the start of the year. Since the reform the 100,000-euro limit is a hard cap in the current year - if you exceed it during the year, you become VAT-liable from exactly that turnover, not only the following year. The check makes clear which threshold applies when.

For a quick assessment you can type in your previous-year turnover and, if you like, record your current monthly turnover. The check sums it and compares it against both thresholds. That way you see early whether you are heading towards VAT liability and need to adjust your prices, invoices and bookkeeping in time.

If you switch to standard taxation, several things change: you show VAT but can deduct the input tax from your purchases. For some it is even worth doing voluntarily - for example with high initial investments. The check helps you understand your starting point so you do not make this decision flying blind.

Everything runs in the browser; your turnover stays on your device. The check is a calculation and early-warning tool, not tax advice. For the switch itself, the return to the small-business rule after exceeding a threshold, or borderline cases with mixed turnover, you should consult a tax advisor.

Features

Both 2026 thresholds checked

Previous year 25,000 euros and current year 100,000 euros under Section 19 - both at once.

Progress bar

See at a glance how close you are to the limit - green, amber, red.

Record monthly turnover

Enter your current turnover and the check sums it against the 100,000-euro limit.

2025 reform reflected

Uses the new thresholds and the hard cap in the current year, not the old forecast rule.

Consequences named clearly

Shows what happens when a threshold breaks: VAT liability, but also input tax deduction.

Runs in the browser

Your turnover stays on your device. No transfer, no account needed to calculate.

How it works

  1. 1

    Enter previous-year turnover

    Enter your total turnover from last year - it decides the 25,000-euro threshold.

  2. 2

    Record current turnover

    Optionally your monthly turnover for the current year - against the 100,000-euro limit.

  3. 3

    Read your status

    The check tells you whether you are still a small business and how much room to the limit remains.

  4. 4

    Understand the consequences

    If you tip over: the check explains what VAT liability and input tax deduction mean.

Who needs this

→Founders wanting to know whether they may start as a small business.
→Self-employed people whose turnover is nearing the 25,000-euro limit.
→Freelancers keeping an eye on the hard 100,000-euro cap.
→Part-time earners with fluctuating turnover.
→Anyone checking their starting point before switching to standard taxation.

Frequently asked questions

What are the 2026 small-business thresholds?

Your total turnover in the previous year must not have exceeded 25,000 euros, and your turnover in the current year must not exceed 100,000 euros. Both conditions must be met. These thresholds apply since the reform on 1 January 2025 and also for 2026.

What happens if I exceed the limit during the year?

Since the reform the 100,000-euro limit is a hard cap: if you exceed it during the year, you become VAT-liable from exactly that turnover. Unlike before, you do not wait until the next year. From the turnover that breaks the limit you must show VAT.

What does small-business status mean for my invoices?

As a small business you show no VAT on your invoices and instead add a reference to Section 19. You file no advance VAT return. In return you cannot deduct input tax from your purchases.

Can I voluntarily waive the rule?

Yes. You can opt for standard taxation even while staying below the thresholds. This often pays off with high initial investments because you can then deduct input tax. However, you are bound to the waiver for several years - get advice before deciding.

Does the check replace tax advice?

No. The check measures your turnover against the thresholds and warns you early. For switching the taxation type, mixed turnover, returning to the rule or the voluntary waiver, tax advice is sensible.

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Ready to use Small Business Tax Check?

No installation. No account needed to start. Open it right in your browser.

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