Section 5: Taxation

§ 19 Taxation of small enterprises

(1) A turnover within the meaning of § 1 paragraph 1 number 1 realised by a taxable person resident in Germany or in one of the territories referred to in § 1 paragraph 3 shall be exempt from tax if the total turnover pursuant to paragraph 2 did not exceed EUR 25,000 in the previous calendar year and does not exceed EUR 100,000 in the current calendar year. In the cases of sentence 1, the provisions on the tax exemption of intra-Community supplies (§ 4 number 1 letter b, § 6a), on the waiver of tax exemption (§ 9), on the indication of VAT identification numbers in an invoice (§ 14a paragraph 1 sentence 3, paragraph 3 sentence 2 and paragraph 7 sentence 2) and on the declaration obligations (§ 18 paragraph 1 to 4) shall not apply; § 149 paragraph 1 sentence 2 of the Fiscal Code and § 18 paragraph 4a shall remain unaffected.

(2) Total turnover is the sum of the taxable transactions carried out by the taxable person within the meaning of § 1 paragraph 1 number 1 calculated on the basis of the consideration received, less the following transactions:

1. transactions, which are tax exempt according to § 4 number 8 lit. i, number 9 lit. b and numbers 11 to 29;

2. transactions, which are tax exempt according to § 4 number 8 lit. a to h, number 9 lit. a and number 10, if they constitute incidental transactions.

Turnovers with fixed assets of a taxable person shall not be recognised when determining the total turnover pursuant to sentence 1.

(3) A taxable person pursuant to paragraph 1 sentence 1 may irrevocably declare to the tax office by the last day of February of the second calendar year following the tax period that he waives the application of paragraph 1. The waiver takes effect from the beginning of the tax period for which it is to apply. The waiver binds the taxable person for at least five calendar years. The taxable person may revoke the waiver with effect from the beginning of the following calendar year.

(4) For taxable persons established in the rest of the Community, paragraph 1 applies accordingly if

1. the annual turnover in the Community territory determined in accordance with Article 288 of Council Directive 2006/112/EC in the currently valid version did not exceed EUR 100,000 in the previous calendar year and does not exceed EUR 100,000 in the current calendar year, and

2. the taxable person has been issued the small business identification number by the Member State of residence for the tax exemption in accordance with paragraph 1 sentence 1.

(5) A taxable person resident in the rest of the Community territory may declare to the competent tax authority in the Member State of residence that he waives the application of paragraph 4. The waiver shall take effect from the beginning of the calendar quarter following the receipt of the waiver. If the waiver is received in the last month of the calendar quarter, the waiver shall take effect from the beginning of the following calendar quarter. The waiver binds the taxable person for at least five calendar years. The taxable person may revoke the waiver with effect from the beginning of the following calendar year.

(6) Paragraph 1 shall not apply to intra-Community supplies of new vehicles. § 15 paragraph 4a shall apply accordingly.