Switching from the small business scheme to standard VAT in Germany

You reach standard taxation in two ways: automatically, if you exceed the turnover limits, or voluntarily, by waiving the small business scheme (Kleinunternehmerregelung). You declare the waiver to the tax office by the last day of February of the second calendar year following the taxation period. It is irrevocable and binds you for at least five calendar years (§ 19 (3) UStG).

Last updated: 29 October 2026

In short

Automatic: standard taxation applies above €25,000 (previous year), €100,000 (current year) or €25,000 (founding year).
Voluntary: the waiver needs no form. Filing an advance return under standard taxation generally counts as a waiver too.
Going back: you can revoke the waiver only after the binding period, and only from the start of a following calendar year.

When do I switch to standard taxation?

There are two triggers.

The turnover limits: if you had more than €25,000 in the previous year, you generally switch at the start of the current year. If you exceed €100,000 in the current year (€25,000 in the founding year), the scheme ends immediately (Finanzamt Hessen). What applies then is explained in Small business limit exceeded.
Your own waiver under § 19 (3) UStG. This article covers it.

The tax office names as one reason for a waiver, for example, that you want to claim input VAT (Finanzamt Hessen).

What this means for you: You switch to standard taxation when a limit is exceeded or when you waive the scheme.

How to declare the waiver

This is how it works:

To whom: to the tax office.
By when: by the last day of February of the second calendar year following the taxation period (§ 19 (3) sentence 1 UStG). For 2025 that is 28 February 2027 (example of the Finanzamt Hessen). For 2026 it is 29 February 2028, because 2028 is a leap year.
Effect: the waiver takes effect from the beginning of the taxation period for which it is to apply (§ 19 (3) sentence 2 UStG). If it is declared in time for 2025, standard taxation applies from 1 January 2025 (Finanzamt Hessen).
Form: it can be declared informally to the tax office (Finanzamt Hessen).
Irrevocable: the declaration is irrevocable (§ 19 (3) sentence 1 UStG).

Be aware of the trap. Because the waiver can be informal, the tax office generally also treats the filing of an advance VAT return or annual VAT return under standard taxation as a waiver (Finanzamt Hessen). So file one only if you really want to switch. More: VAT return for a small business.

What this means for you: Declare the waiver to the tax office by the deadline, and file an annual return under standard taxation only if you want to waive.

Which deadline applies to which year?

The deadline depends on the year for which the waiver is to apply. It ends on the last day of February of the second following year (§ 19 Abs. 3 Satz 1 UStG):

Waiver to apply from	Last day of the deadline
1 January 2025	28 February 2027
1 January 2026	29 February 2028 (leap year)
1 January 2027	28 February 2029
1 January 2028	28 February 2030

The date for 2025 is the example of the Finanzamt Hessen; the other rows are calculated with the same rule. Because the waiver takes effect from the beginning of the year (§ 19 Abs. 3 Satz 2 UStG), you can also declare it retroactively until the end of the deadline (Finanzamt Hessen).

What this means for you: count the deadline from the year in which you want standard taxation: end of February of the second following year.

What do I write in the waiver?

You need no official template, because the waiver can be informal (Finanzamt Hessen). Name, tax number, the year from which it applies and the legal basis matter. One possible wording, not an official form:

"I waive the application of the small business scheme (§ 19 Abs. 1 UStG) under § 19 Abs. 3 UStG from 1 January 2026. I am aware that the waiver is irrevocable and binds me for at least five calendar years."

Proceed like this:

Write the declaration with name, address and tax number.
State the year from which standard taxation is to apply.
Send it to your tax office before the deadline and keep proof of sending.

What this means for you: the waiver needs no form. Still state the year and the legal basis.

Can I waive the scheme when founding the business?

Yes. When you found your business, you can declare the waiver in the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung) (Finanzamt Hessen). You send the questionnaire to the competent tax office within one month of founding. You can also declare the waiver independently of the questionnaire, retroactively, by the last day of February of the second following calendar year (Finanzamt Hessen). How the questionnaire works: Applying for a tax number.

What this means for you: You can waive the scheme when founding your business in the tax registration questionnaire.

Five years' binding period and revocation

The waiver binds you for at least five calendar years. You can revoke it with effect from the beginning of a subsequent calendar year (§ 19 (3) sentences 3 and 4 UStG). After the five years, standard taxation continues to apply until you revoke the waiver to the tax office. The revocation only takes effect in advance, from the beginning of a following calendar year (Finanzamt Hessen).

The Finanzamt Hessen gives an example. A business owner founds in 2025 and waives in the same year. In December 2030 the owner declares the revocation. Total turnover in 2030 was €20,000. From the start of 2031 the owner may apply the small business scheme again. In the previous year the €25,000 limit was not exceeded, and the five-year binding period from 2025 to 2029 inclusive has expired. In 2031 sales up to €100,000 are VAT-exempt.

A timeline if the waiver applies from 2026:

Period	What applies
2026 to 2030	Binding period of five calendar years: standard taxation
from 2031	Standard taxation until you revoke the waiver
1 January 2031 at the earliest	The revocation can take effect; the small business scheme then applies again if the limits of § 19 Abs. 1 UStG are met

The timeline is calculated from § 19 Abs. 3 Sätze 3 and 4 UStG and the example of the tax office.

What this means for you: Expect to stay bound for at least five calendar years after a waiver.

What changes after the switch?

Advance returns: you declare the tax in the advance VAT returns (Finanzamt Hessen). They are due by the tenth day after the end of the advance return period (§ 18 (1) sentence 1 UStG). The advance return period is generally the calendar quarter, and the calendar month if the previous year's tax was more than 9,000 euros (§ 18 (2) sentences 1 and 2 UStG). If you waive the scheme when you start, separate rules apply to the start-up year and the following year (§ 18 (2) sentences 4 and 6 UStG): if you start in 2026, under the current wording you file monthly for 2027. Details: Submitting the advance VAT return online.
Input VAT: you can claim input VAT at the same time (Finanzamt Hessen). As a small business owner you are not entitled to deduct it.
Invoices: they contain the tax rate and the tax amount on the consideration (§ 14 (4) no. 8 UStG). As a small business owner you must not show VAT separately (Finanzamt Hessen).

Whether the switch is favourable for you depends on your sales, your customers and your expenses. That is a question for tax advice, not for this article. For the EU small business scheme, see Applying for the EU small business scheme in Germany. If you sell to Switzerland, see Selling to Switzerland from Germany: VAT for sellers.

What this means for you: After the switch, file advance returns and show VAT on your invoices.

Which mistakes happen often?

Filing an advance return without wanting to waive. It generally counts as a waiver.
Overlooking the binding period. After the waiver you are bound for at least five calendar years. The waiver itself cannot be taken back.
Missing the deadline. It ends on the last day of February of the second following year.
Carrying on without tax. After the switch, the tax rate and the tax amount belong on your invoices (§ 14 (4) no. 8 UStG). Conversely, as a small business owner you owe any tax amount you show (§ 14c (1) UStG; section 14c.1 (2) UStAE).
Declaring the revocation too late. It only takes effect in advance, from the beginning of a following calendar year.

If you take part in the OSS, see Switching your OSS provider: what to secure first.

What this means for you: Do not file an advance return unless you want to waive, and mind the binding period and the deadline.

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

At the start, the tax registration questionnaire for sole proprietorships in VAT GPT asks whether you apply the small business scheme or waive it and calculate the VAT. After the switch, the advance return works like this:

Upload: You upload your Amazon and eBay CSV reports and your invoices. The AI reads amounts, countries and tax rates.
Check: VAT GPT prepares the advance return, monthly or quarterly. You check and confirm.
Send: With VAT GPT Pro it goes via ELSTER directly to the tax office.

Try VAT GPT

Frequently asked questions

Until when can I waive the small business scheme? By the last day of February of the second calendar year following the taxation period (§ 19 (3) UStG). For 2025: 28 February 2027. For 2026: 29 February 2028.

How long am I bound after the waiver? At least five calendar years (§ 19 (3) UStG).

Can I take the waiver back? The declaration is irrevocable. You can, however, revoke the waiver with effect from the beginning of a subsequent calendar year, at the earliest after the binding period.

Does the waiver need a particular form? No, it can be informal (Finanzamt Hessen). An advance return under the rules of standard taxation generally also counts as a waiver.

Can I waive already when founding? Yes, for example in the tax registration questionnaire (Finanzamt Hessen).

How do I switch from the small business scheme to standard taxation? Either automatically when you exceed the limits, or by the waiver under § 19 Abs. 3 UStG, which you declare informally to the tax office.

Is there a form or template for the waiver? The waiver is informal (Finanzamt Hessen). A wording to adapt is in the section "What do I write in the waiver?".

Can I declare the waiver retroactively? Yes, until the end of the deadline (last day of February of the second following year). It then takes effect from the beginning of the year (§ 19 Abs. 3 Satz 2 UStG).

Can I go back after exceeding the limit? Then there is no waiver that binds you. For each year, the limits in § 19 Abs. 1 UStG decide whether you may apply the scheme. What applies on exceeding is in Small business limit exceeded.

May I deduct input VAT after the switch? Yes. You can claim input VAT in the advance returns (Finanzamt Hessen).