Small trader on eBay in Germany: no VAT and which taxes apply?

Do you sell on eBay regularly and wonder whether you can sell without VAT as a small trader? Yes, if you are a small business owner. Your total turnover was at most €25,000 in the previous year and stays at most €100,000 in the current year (§ 19 (1) UStG). If you start during the current year, the limit for that year is €25,000 (section 19.1 (3) UStAE). You still pay income tax on the profit. Trade tax only applies above a trade income of €24,500 (§ 11 (1) GewStG). The trade registration and a VAT ID for eBay come on top.

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

Trade or private: The features in § 15 (2) EStG decide, not the number of sales.
Income tax: Without a duty to keep books, an income surplus statement (EÜR) is enough (§ 4 (3) EStG).
VAT: Small business owners are exempt up to €25,000 (previous year) and €100,000 (current year) (§ 19 (1) UStG).

When is selling on eBay a trade?

The law names four features. The activity is independent and continuing. You act with the intention of making a profit and take part in general economic activity. It is then a trade if it is neither agriculture and forestry nor a liberal profession nor other independent work (§ 15 (2) sentence 1 EStG). There is no fixed number of items or turnover limit. Whether the features apply to you depends on the individual case. If in doubt, ask the tax office or a tax adviser.

eBay itself points out that private sales are usually tax-free as long as no profit arises. The report under the German Platform Tax Transparency Act (DAC7) is, according to eBay, no new tax and no duty to register a trade. According to eBay, it reports sales data to the tax office if you have at least 30 transactions in a calendar year. The same applies if your sales exceed €2,000 after fees, commissions or taxes. According to eBay, the report does not mean that you have to pay tax.

In everyday German such a small trade is often called a Kleingewerbe.

What this means for you: selling on eBay counts as a trade if it is independent, continuing and aimed at profit.

Which three taxes can apply?

Tax	Who pays	Main rule
Income tax	You as a sole proprietor, on the profit	Income from a trade is subject to income tax (§ 2 (1) EStG).
Trade tax	You, if the trade income exceeds the allowance	Allowance of €24,500 for natural persons (§ 11 (1) GewStG).
VAT	You, unless you are a small business owner	Exemption up to €25,000 in the previous year and €100,000 in the current year (§ 19 (1) UStG).

What this means for you: three taxes can apply to you, so check each of them.

How do I work out my profit with the EÜR?

The profit from your eBay trade counts as income from a trade and is subject to income tax (§ 2 (1) EStG). If you are not obliged by law to keep books and make regular financial statements, and do not do so voluntarily, you take the surplus of business income over business expenses as your profit (§ 4 (3) EStG). That is the income surplus statement (EÜR). You submit it electronically in the officially prescribed data format. On application the tax office may waive this to avoid undue hardship (§ 60 (4) EStDV).

Under § 141 AO you must keep books if the tax office finds more than €800,000 total turnover in a calendar year or more than €80,000 profit from a trade in a financial year and notifies you (§ 141 (1) and (2) AO). If another law requires you to keep books, for example as a merchant under the German Commercial Code (HGB), that duty also applies for tax (§ 140 AO). Sole merchants are exempt if they have no more than €800,000 revenue and €80,000 annual surplus in two consecutive financial years (§ 241a HGB). How the EÜR looks in ELSTER is described in EÜR template: how to file the Anlage EÜR in ELSTER.

What this means for you: work out your profit with the EÜR: income minus expenses.

When do I pay trade tax? Only above €24,500

For natural persons the trade income is reduced by an allowance of €24,500 before trade tax is calculated (§ 11 (1) sentence 3 no. 1 GewStG). If your trade income stays below that, no trade tax is due. The trade tax return is a separate matter; more in Trade tax return in Germany: small business, form, deadline.

What this means for you: trade tax is due only above the €24,500 allowance.

Am I a small business owner or taxed normally?

A sale is exempt if total turnover did not exceed €25,000 in the previous calendar year. In the current calendar year it must not exceed €100,000 (§ 19 (1) sentence 1 UStG). The Finanzamt Hessen points out that total turnover is measured by net turnover received, and that as a small business owner you are not entitled to deduct input VAT. On invoices you do not show VAT separately and you refer to the exemption under § 19 (1) UStG. The same topic for Amazon is in selling on Amazon as a small business.

You can also waive the scheme voluntarily; the waiver binds you for at least five calendar years (§ 19 (3) UStG). All details on advance returns, limits and waiver are in VAT return for small businesses in Germany: must I file?; for eBay in particular in eBay VAT for small business owners.

What this means for you: check the small business limits for last year and this year before you decide on VAT.

How do I register the trade and tell the tax office?

Anyone who starts an independent stationary trade must notify the competent authority at the same time (§ 14 (1) GewO). The municipality informs the tax office of your notification (§ 138 (1) AO); in addition you send the tax office the tax registration questionnaire (§ 138 (1b) AO). The Finanzamt Hessen names a period of one month after the start. There you also declare whether you apply the small business scheme or waive it. How to get the tax number is described in Tax number in Germany: how to apply (online questionnaire).

What this means for you: register the trade with the authority and tell the tax office.

Does eBay ask for a VAT ID, also from small business owners?

According to eBay's VAT page, since 1 July 2021 the VAT ID is mandatory for small business owners too. You apply for the number at the Federal Central Tax Office (BZSt). How that works and where to enter it on eBay is 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, so apply early.

Which pitfalls are typical?

Waiting until a limit is reached. The law names no number of sales for a trade; the features in § 15 (2) EStG count.
Mistaking the DAC7 report for a tax. eBay itself writes that it is no new tax.
Mixing up trade tax and trade registration. Notifying the trade office is a duty; trade tax is a payment only above the allowance.
Showing VAT on the invoice. As a small business owner you must not show it separately.
Not applying for the VAT ID. eBay asks for it from small business owners too.
Not collecting business income and expenses. Without receipts the profit cannot be worked out properly.

What this means for you: register, keep records and compare your turnover with the limits.

How VAT GPT helps

VAT GPT is the tax software for online sellers, freelancers and small businesses in Germany. It calculates and files in one place, in this order:

your OSS return
VAT
EÜR
trade tax
income tax

Once your trade is registered, you choose in the tax registration questionnaire for sole proprietorships whether you apply the small business scheme or waive it. Then:

Upload: You upload the eBay orders report as CSV. VAT GPT recognises it by the column Verkaufsprotokollnummer.
Check: VAT GPT prepares advance VAT returns, annual VAT returns, EÜR, trade tax and income tax returns. You check and confirm.
Send: Sending via ELSTER is part of VAT GPT Pro.

Try VAT GPT

Frequently asked questions

When does my eBay selling count as a trade? When it is independent, continuing, with the intention of making a profit and taking part in general economic activity (§ 15 (2) EStG). The law names no fixed limit.

Do I have to register a trade just because eBay reports my data? According to eBay's DAC7 page there is no duty to register a trade because of the report. What matters is whether the features of a trade are met.

Which taxes do I pay with a small trade on eBay? Income tax on the profit, trade tax when the trade income exceeds the allowance of €24,500, and VAT unless you are a small business owner.

Do I need an advance VAT return as a small business owner? Usually not (§ 19 (1) sentence 2 UStG); the exceptions are in VAT return for small businesses in Germany: must I file?.

Do I have to keep books? Under § 141 AO, if the tax office finds more than €800,000 total turnover or more than €80,000 profit from a trade and notifies you; also if another law such as the German Commercial Code requires it (§ 140 AO). Otherwise the EÜR is enough.

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

Can I sell on eBay as a small trader without VAT? Yes, as a small business owner: total turnover of at most €25,000 in the previous year and at most €100,000 in the current year (§ 19 (1) UStG). In your first year the limit is €25,000 (section 19.1 (3) UStAE). You then issue invoices without showing VAT separately. eBay still asks for a VAT ID.