eBay VAT for small business owners in Germany: what applies to sellers?

As a small business owner (Kleinunternehmer) you charge no VAT up to €25,000 total turnover in the previous year and €100,000 in the current one (§ 19 (1) UStG). You show no VAT separately on invoices and deduct no input VAT, not even from eBay's fees. eBay still asks for a VAT ID.

Only VAT GPT sends all three returns itself. Of the tools we compare, according to the providers' own pages (checked 3 November 2026), only VAT GPT submits the OSS return itself to the BZSt, plus the VAT advance return and the annual VAT return via ELSTER to the tax office, calculated from your Amazon and eBay reports. You do not have to go into Mein ELSTER or the BZStOnline portal yourself. With the others, you upload the OSS file in the BZStOnline portal yourself, or a tax adviser or the provider's service files it for you. Sending needs Pro. OSS software compared

Last updated: 29 October 2026

In short

Total turnover: Your taxable sales less certain exempt ones, not just eBay, net as received (§ 19 (2) UStG).
Founding year: In the founding year the limit is €25,000, according to the Finanzamt Hessen.
Advance return: Usually none; exceptions: VAT return for small businesses in Germany.

When am I a small business owner as an eBay seller?

A sale is exempt if total turnover did not exceed €25,000 in the previous calendar year and does not exceed €100,000 in the current calendar year (§ 19 (1) sentence 1 UStG). Total turnover is the sum of the taxable sales you make, calculated on the amounts received (§ 19 (2) UStG). If you also sell elsewhere, all sales count together. The Finanzamt Hessen names net turnover received as the yardstick: you do not include the VAT. A forecast of the year's turnover is no longer required.

Situation	Consequence
Previous year up to €25,000, current year up to €100,000	Your sales are exempt.
Previous year over €25,000 (but not over €100,000)	The switch to standard taxation generally takes place at the start of the current year.
Current year over €100,000	The scheme ends immediately; the sale that exceeds the limit is already taxed normally.
Founding year over €25,000	The sale that exceeds the limit is already taxed normally.

The Finanzamt Hessen gives an example: entrepreneur U founds the business in 2025 and has total turnover of €18,000; in 2026 it is €60,000. At the start of 2027 U must move to standard taxation because the previous year's turnover exceeded the €25,000 limit.

What this means for you: you stay a small business owner while turnover stays within €25,000 last year and €100,000 this year.

How do I write invoices and set prices on eBay?

As a small business owner you must not show VAT separately on invoices and you must refer to the exemption under § 19 (1) UStG (Finanzamt Hessen). If you still show VAT on an invoice as a small business owner, the tax authorities treat it as an excessive tax statement and you owe the amount shown (§ 14c (1) UStG; UStAE section 14c.1 (2)). This does not apply if you actually made the supply and issued the invoice to a final consumer, for example a private person (UStAE section 14c.1 (1a)); for invoices to businesses for their business, the tax debt remains.

On form: small business owners may issue simplified invoices under § 34a UStDV. They are not obliged to issue e-invoices, but they must be able to receive e-invoices from other businesses (Finanzamt Hessen). What XRechnung and ZUGFeRD look like is in Creating and validating XRechnung and ZUGFeRD e-invoices.

What this means for you: issue invoices without VAT and refer to the exemption under § 19 (1) UStG.

Is there input VAT deduction on eBay fees?

eBay writes that its fees for all users based in Germany include German VAT. As a small business owner you are not entitled to an input VAT deduction (Finanzamt Hessen); for questions on input VAT deduction eBay refers to a tax adviser. How it works under standard taxation is described in eBay fees and input VAT: what you can deduct.

What this means for you: you cannot deduct input VAT, not even from eBay's fees.

Does eBay ask small business owners for a VAT ID?

According to eBay's VAT page, since 1 July 2021 giving a VAT ID is mandatory for small business owners too; it does not matter whether the business pays no VAT because of the small business exemption. The number is not your tax number. Application and entry are explained in eBay VAT ID in Germany: requirement and how to add it.

What this means for you: eBay asks small business owners for a VAT ID too.

What does waiving the small business scheme mean?

You can waive the scheme voluntarily, for example to claim input VAT (Finanzamt Hessen). You declare the waiver to the tax office irrevocably; it binds you for at least five calendar years (§ 19 (3) UStG). The Finanzamt Hessen points out that the tax office generally treats an advance VAT return filed under standard taxation as a waiver. After that come advance returns and invoices with VAT; what that looks like on eBay is described in eBay seller VAT in Germany: advance return and OSS.

What this means for you: you can waive the scheme voluntarily by declaring it to the tax office.

What applies to sales to other EU countries?

Since 1 January 2025, businesses can, under certain conditions, also use the small business exemption in the other EU member states; for that you apply to take part in the reporting procedure of the EU small business scheme at the Federal Central Tax Office (BZSt) (Finanzamt Hessen). Whether the OSS threshold matters for you is answered in OSS for small businesses: is there a 10,000-euro limit?. On the question of local registration or OSS, eBay refers to a tax adviser. The threshold applies only if your business is established only in Germany (§ 3c (4) UStG).

What this means for you: for sales to other EU countries check the extra small business rules since 2025.

Which mistakes happen often?

Counting only eBay sales. What counts is total turnover from all taxable sales.
Calculating gross instead of net. The limits refer to net turnover received.
Showing VAT on the invoice. Small business owners may not do that, and it can lead to a tax debt under § 14c UStG.
Deducting input VAT from eBay fees. You are not entitled to an input VAT deduction.
Not entering the VAT ID. eBay asks for it from small business owners too.
Overlooking the previous year. If last year's turnover was over €25,000, standard taxation generally applies from the start of the year.
Filing an advance return to be safe. An advance return filed under standard taxation generally counts as a waiver.

What this means for you: check your turnover limits and invoice without VAT.

How VAT GPT helps

As a small business owner you first choose in the tax registration questionnaire for sole proprietorships whether you apply the small business scheme or waive it. Then, in VAT GPT:

Upload: You upload the eBay orders report as CSV; VAT GPT recognises it by the column Verkaufsprotokollnummer.
Check: VAT GPT calculates the VAT for Germany and OSS. You check and confirm.
Send: If you file returns, you send them with VAT GPT Pro via ELSTER.

The Free plan processes Amazon and eBay reports and calculates VAT for Germany and OSS; sending to ELSTER is part of Pro. There are Free (basic features, free of charge), Go (30 days free with all Pro features) and Pro. Try for Free Now

Frequently asked questions

Do I have to pay VAT on eBay as a small business owner? No, as long as you stay under the limits: your sales are exempt under § 19 (1) UStG.

What are the limits for eBay sellers? €25,000 total turnover in the previous year and €100,000 in the current year; in the founding year €25,000 according to the Finanzamt Hessen.

May I show VAT on an invoice as a small business owner? No. You must refer to the exemption under § 19 (1) UStG. If you show tax anyway, you owe the amount (§ 14c (1) UStG), except for an invoice for a supply actually made to a final consumer, for example a private person (UStAE section 14c.1 (1a)).

Can I deduct the VAT in eBay fees as input VAT? No, as a small business owner you are not entitled to an input VAT deduction (Finanzamt Hessen).

Do I need a VAT ID for eBay as a small business owner? According to eBay's page, yes.

Do I have to issue e-invoices as a small business owner? No, but you must be able to receive them (Finanzamt Hessen).

What happens if I exceed the limit? In the current year the scheme ends immediately from the sale that exceeds the limit; if the previous year's turnover was over €25,000, standard taxation generally applies from the start of the year.