Small trader on eBay in Germany: which taxes apply?

Do you sell on eBay regularly? Three taxes can apply to your small trade: income tax on the profit, trade tax only above the €24,500 allowance (§ 11 (1) GewStG) and VAT, from which the small business scheme can exempt you (§ 19 UStG). The trade registration and a VAT ID for eBay come on top.

Last updated: 27 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. An independent, continuing activity that is carried out with the intention of making a profit and amounts to taking part in general economic activity is 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, and that the report under the German Platform Tax Transparency Act (DAC7) is 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 or 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.

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).

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). Taxpayers who are not obliged by law to keep books and make regular financial statements, and who do not do so, may take the surplus of business income over business expenses as their 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 that you have total turnover of more than €800,000 in a calendar year or profit from a trade of more than €80,000 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 with no more than €800,000 revenue and €80,000 annual surplus in two consecutive financial years are exempt from it (§ 241a HGB). How the EÜR looks in ELSTER is described in EÜR template: how to file the Anlage EÜR in ELSTER.

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.

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 and does not exceed €100,000 in the current calendar year (§ 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.

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.

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).

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.

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.

How VAT GPT helps

Once your trade is registered, it works like this in VAT GPT:

Register for tax: In the tax registration questionnaire for sole proprietorships you choose whether you apply the small business scheme or waive it.
Upload: You upload the eBay orders report as CSV; VAT GPT recognises it by the column Verkaufsprotokollnummer.
Check and send: VAT GPT prepares advance VAT returns, annual VAT returns, EÜR, trade tax and income tax returns. You check and confirm; with VAT GPT Pro you send them via ELSTER.

There is Free (basic features, free of charge), Go (30 days free with all Pro features) and Pro (€49 per month or €444 per year, each including VAT). Try for Free Now

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.