Tax software for small businesses in Germany: what you really need

Small business owners (Kleinunternehmer) need software that sends the income tax return and income surplus statement (EÜR) electronically, plus the trade tax return for a trade business. Advance and annual VAT returns usually lapse. That applies if total turnover was at most €25,000 last year and is at most €100,000 this year (§ 19 (1) UStG). In the founding year, €25,000 applies (Finanzamt Hessen).

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

Switch: The program should handle the switch to standard taxation if you exceed the limits or waive the scheme.
Trap: An advance return under standard taxation generally counts as a waiver. It binds you for at least five calendar years (§ 19 (3) UStG).
No program needed: Mein ELSTER is free according to ELSTER; a program pays off with many receipts.

Which returns remain for small business owners?

The small business scheme concerns VAT only (§ 19 UStG). Income tax and, for a trade business, trade tax remain. The overview:

Return	As a small business owner	How
Advance VAT return	As a rule not	The filing duties under § 18 (1) to (4) UStG are dropped (§ 19 (1) sentence 2 UStG)
Annual VAT return	As a rule not	Same as for the advance return
Income tax return	Yes	Electronically (§ 25 (3) and (4) EStG)
Income surplus statement (EÜR)	Yes, if you determine profit under § 4 (3) EStG	Electronically (§ 60 (4) EStDV)
Trade tax return	Only for a trade business	Electronically (§ 14a GewStG); due, among other cases, if trade income exceeds €24,500 (§ 25 (1) GewStDV)

Whether you are a freelancer or run a trade decides about trade tax: it affects only a trade business (§ 2 (1) GewStG). The distinction is in Tax software for the self-employed in Germany: what matters. Trade tax is explained in Trade tax return in Germany, also for small businesses.

What this means for you: As a small business owner you skip the VAT returns as a rule, but income tax and, for a trade, trade tax remain.

What must tax software for small businesses be able to do?

These points decide whether a program fits you:

Send the EÜR and income tax return: Both are to be transmitted electronically in the officially prescribed data format (§ 60 (4) EStDV, § 25 (4) EStG). A program that only produces a PDF is not enough. The tax office waives electronic transmission only on request, to avoid undue hardship. You can use the EÜR only if you are not legally obliged to keep books (§ 4 (3) EStG).
Trade tax return for a trade business: It too is to be transmitted electronically (§ 14a GewStG).
Figures instead of retyping: The more invoices and marketplace reports you have, the more an import helps.
The switch to standard taxation: If the small business scheme ends or you waive it, you transmit the advance return electronically by the tenth day after the end of the advance return period (§ 18 (1) UStG). Ask whether the software has this function then.
E-invoices: You do not have to issue them, but you must be able to receive them; according to the Finanzamt Hessen an email inbox is enough.
Sending or only calculating: Some programs only calculate, others also send. Ask whether exactly the returns you file are included.

What this means for you: Pick a program that sends the EÜR and the income tax return electronically, not one that only produces a PDF.

Mein ELSTER or a program?

Mein ELSTER is the tax administration's portal. According to ELSTER it is free, needs no download or installation and works on tablet and smartphone too. With few receipts it can be enough: you fill in the forms yourself. A program pays off when you have many invoices or marketplace reports or prepare several returns from the same figures. The comparison is in ELSTER alternative for online sellers: Mein ELSTER or software?. If you are just starting out, you first need a tax number: Tax number in Germany: applying with the tax registration questionnaire online. For English-language options, see Tax software in Germany in English: what works.

What this means for you: Use Mein ELSTER with few receipts, and a program when you have many.

What applies when the small business scheme ends?

Then your program also needs VAT. That happens in two ways:

You exceed the limit. If you pass €100,000 in the current year (€25,000 in the founding year), the scheme ends immediately. The sale that exceeds the limit and all later sales are subject to standard taxation. Earlier VAT-exempt sales stay exempt. If your total turnover in the previous year was over €25,000 but not over €100,000, you switch in principle at the start of the current year (Finanzamt Hessen). What counts is the net sales received, without VAT. A forecast is no longer needed.
You waive voluntarily, for example to claim input VAT. You declare the waiver to the tax office irrevocably, by the last day of February of the second calendar year following the taxation period at the latest. It binds you for at least five calendar years (§ 19 (3) UStG).

After the switch you declare the tax in advance VAT returns and can claim input VAT at the same time. As a small business owner, by contrast, you are not entitled to deduct input VAT (Finanzamt Hessen). Limits, exceptions and the waiver trap are in VAT return for a small business in Germany: do I have to file?.

What this means for you: Expect to need VAT functions when the scheme ends, either by passing the limit or by a waiver.

Which mistakes come up most often?

Choosing a program for VAT functions you do not need. While you are a small business owner, the advance and annual VAT returns as a rule do not apply.
Filing an advance return "to be safe". Under standard taxation the tax office generally treats it as a waiver (Finanzamt Hessen). It binds you for at least five calendar years (§ 19 (3) UStG).
Showing VAT on the invoice. As a small business owner you must not show it separately and must refer to § 19 (1) UStG (Finanzamt Hessen). If you show it anyway, you owe it as an incorrect tax statement until you correct the invoice (§ 14c (1) UStG); on invoices to final consumers no tax arises, according to the BMF (BMF letter of 18 March 2025; section 14c.1 (2) UStAE).
Checking the €100,000 limit only at year end. It takes effect immediately in the current year, from the sale that exceeds it.
Only printing the EÜR and income tax return. Both are to be transmitted electronically.
Forgetting the trade tax return. If you run a trade, it is due, among other cases, if trade income exceeds €24,500 (§ 25 (1) GewStDV).

What this means for you: Do not pay for VAT functions you do not need yet, and do not forget the trade tax return.

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

If you are just starting out, you fill in the tax registration questionnaire for sole proprietorships in VAT GPT and state there whether you waive the small business scheme. For your returns you work like this:

Upload: You upload your Amazon or eBay reports as a CSV file and your invoices. The AI reads amounts, countries and tax rates.
Check: You check and confirm the values. In the same account you create your EÜR, trade tax and income tax returns.
Send: With VAT GPT Pro, the returns go via ELSTER to the tax office.

If you switch to standard taxation, the advance VAT return (monthly or quarterly) and the annual VAT return are added. VAT GPT is not tax advice.

Frequently asked questions

Do I need tax software as a small business owner? Not necessarily. In Mein ELSTER you fill in the forms yourself; it is free according to ELSTER. A program pays off if you have many receipts. What matters is the route: the income tax return and the EÜR go to the tax office electronically (§ 25 (4) EStG, § 60 (4) EStDV).

Must I file a tax return as a small business owner? As a rule yes: the income tax return (§ 25 (3) EStG). Advance VAT returns and an annual VAT return are as a rule dropped (§ 19 (1) sentence 2 UStG).

Which limits apply to small business owners? Total turnover of no more than €25,000 in the previous year and no more than €100,000 in the current year (§ 19 (1) sentence 1 UStG); €25,000 in the founding year (Finanzamt Hessen). What counts is the net sales received.

Do I have to pay trade tax as a small business owner? Trade tax affects only a trade business (§ 2 (1) GewStG), so as a rule not if you are a freelancer. A trade tax return is due, among other cases, if the trade income exceeds €24,500 (§ 25 (1) GewStDV).