Small companies
Entrepreneurs whose turnover (plus the respective apportioned value-added tax) has not exceeded 17,500 € in the previous calendar year and will most likely not exceed 50,000 € in the current year (small entrepreneur/business), do not need to pay value-added tax. As a result, they are not allowed to charge VAT in the invoice.
The right to deduct the billed input tax is, however, denied these small companies of the denial of the input tax deduction, the special regulation for the small undertakings can have an unfavourable effect. The law therefore grants them the option of waiving the special regulation and to choose taxation according to the general rules. They are then tied to the waiver for 5 years.