Applying for the EU small business scheme in Germany

In brief

• Who: Businesses established in Germany that want to use the small business exemption in another EU country take part in the special reporting procedure (section 19a (1) UStG).
• Limit: Your annual turnover in the EU did not exceed 100,000 euro in the previous year and does not exceed it in the current year. The conditions of the target country come on top.
• Application: electronic, in the BZSt online portal; the BZSt issues you a small business identification number (KU number).
• Report: one turnover report to the BZSt for every calendar quarter, within one month after the quarter ends, a nil report if you had no turnover.

Who can use the EU small business scheme?

Under section 19a (1) sentence 3 UStG, taking part requires four things:

1. You apply for participation electronically at the BZSt.
2. Your annual turnover in the Community, determined under Article 288 of the VAT Directive, did not exceed 100,000 euro in the previous calendar year and does not exceed it in the current calendar year.
3. You meet the conditions for the small business exemption in the Member State that grants it.
4. You are not registered for the small business exemption in any other Member State.

For the German side the BZSt names the domestic conditions: your tax office treats you as a business, and you give the tax number under which you are registered for VAT. Every Member State also has its own national conditions; the BZSt points to an overview of the countries for these. If one of the domestic conditions is missing, the BZSt rejects the application.

The German small business scheme (section 19 UStG) and the EU scheme (section 19a UStG) are independent of each other. You can take part in the EU scheme even if you do not meet the conditions of the German scheme. How to check the German limit is in Small business rule 2026: the limit.

When a country approves, you no longer have to file a VAT return or pay VAT there. The BZSt also writes that the right to deduct input VAT under section 15 (2) UStG falls away.

The application in the BZSt online portal, step by step

1. Have your tax number ready. You need the number under which your tax office registers you for VAT. The BZSt lists the U, UK, UL, ULN, ULK and US signals. For the application you do not need a VAT ID number or an economic ID number (W-IdNr).
2. Match your data with the tax office. Your business data, for example the address, must match the data held by the tax office. If something changes, tell the tax office first.
3. Open the form. In the BZSt online portal choose "Registrierung zur Teilnahme an der Kleinunternehmer-Regelung der Europäischen Union nach § 19a Umsatzsteuergesetz" (registration for taking part in the small business scheme of the European Union under section 19a UStG).
4. Choose the countries. You apply for the scheme in individually chosen Member States or in all of them.
5. Send it and wait for the decision. The BZSt checks the domestic conditions and passes the application to the chosen countries. Each country checks its own national conditions. Then you receive a notice from the BZSt.

What the notice says

You are registered as a small business only in the countries that the notice marks as approved. The registration applies from the approval date named there. Countries often reply one by one, so the first notice does not have to include every country you applied for. The BZSt can neither influence how long this takes nor tell you where a check stands. If a Member State refuses, you can challenge that only in that Member State.

For taking part, the BZSt issues you a small business identification number (section 19a (1) sentence 2 UStG). You report changes to the details in your application to the BZSt without delay (section 19a (1) sentence 4 UStG); the portal has a form for changing the registration.

The turnover report every quarter

For every calendar quarter you file a turnover report, within one month after the quarter ends, in the officially prescribed data set through the officially designated interface (section 19a (3) UStG). The BZSt describes the content like this:

• You report the total turnover you made within the EU, whether you used the EU small business scheme, the OSS or regular taxation for it. You give one value for every Member State including Germany, 0 euro for countries without turnover.
• If you had no turnover, a nil report is required.
• Amounts are given in euro. The exchange rate is the European Central Bank rate of the first day of the calendar year.

Later changes to a report go through a separate form in the portal. The BZSt also requires you to record your turnover completely and traceably and to be able to provide the records electronically on request.

The turnover report does not replace other returns: turnover that is taxed under the regular rules is still declared to the tax office, and OSS turnover is declared through the OSS if you are registered for it.

When participation ends and what applies afterwards

• Limit exceeded: If your annual turnover in the Community exceeds 100,000 euro, you notify the BZSt within 15 working days. Participation ends when the limit is exceeded (section 19a (4) UStG). If another condition falls away, you are excluded from the procedure.
• Deregistration: The "Abmeldung" (deregistration) form takes you out of the EU scheme. It applies to all active EU countries except Germany; you cancel the German scheme at your tax office. Deregistration takes effect on the first day of the next calendar quarter. If it arrives in the last month of a quarter, it takes effect on the first day of the second month of the next quarter.
• Afterwards: The BZSt points out that you can use different procedures side by side for different countries: the EU scheme for one country, regular taxation or the OSS for another.

When the OSS comes into question for you and how the routes fit together is in OSS for small businesses. Registering for the OSS is described in OSS registration in Germany.

How VAT GPT helps

VAT GPT is the tax software for Amazon and eBay sellers in Germany: your OSS return first, then every other tax you owe, calculated and filed in one place. For sales to other EU countries that means:

1. You upload your Amazon and eBay CSV reports.
2. VAT GPT breaks the VAT down for Germany and the EU (OSS).
3. In the OSS return VAT GPT shows the OSS VAT by country, with the net amount per country.

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

Not tax advice: the content does not replace individual advice.

Frequently asked questions

Do I need a VAT ID number to apply? No. According to the BZSt neither a VAT ID number nor an economic ID number is needed. You give the tax number under which you are registered for VAT.

Can I use the EU scheme if I am not a small business in Germany? The BZSt calls the two schemes independent of each other. The EU limit of 100,000 euro and the target country's conditions must still be met.

How long until the notice arrives? That depends on the countries you chose. The BZSt can neither influence the time nor tell you where the check stands.

Where can I challenge a Member State's refusal? The BZSt writes: only in the Member State concerned.

Do I report if I sold nothing? Yes, as a nil report. A turnover report is due for every quarter of participation.

What if I go over 100,000 euro during the year? You notify the BZSt within 15 working days; participation ends when the limit is exceeded.

Read next

• OSS for small businesses
• OSS registration in Germany
• Small business rule 2026: the limit

Sources

• Section 19a UStG
• BZSt: European small business scheme (EU-KU-Regelung)
• BZSt online portal: special reporting procedure for small businesses (EU-KU-Regelung)
• BMF letter of 18 March 2025 (UStAE 19a.1 to 19a.4, in German)