Depreciation and low-value assets (GWG) in the EÜR: what applies to purchases

Assets you use in the business for more than a year are spread over their useful life as depreciation (AfA, Absetzung für Abnutzung; § 7 (1) EStG). Low-value assets (GWG, geringwertige Wirtschaftsgüter) are an exception: if the acquisition costs, net of input VAT, are 800 euros or less, you can deduct them in full as a business expense in the year of purchase (§ 6 (2) EStG). In the Anlage EÜR both appear in lines 31 to 38 (EÜR 2025 instructions).

Last updated: 26 October 2026

The essentials in brief

GWG: up to 800 euros, net of any input VAT contained; immediate deduction in the year of purchase.
Collective item: an alternative for assets above 250 and up to 1,000 euros, released at one fifth a year over five years.
Above that: spread over the useful life (AfA).
Computers and software: a useful life of one year can be assumed.
Registers: GWG above 250 euros and fixed assets belong in registers kept continuously.
Lines: GWG line 36, collective item line 37, AfA lines 31 to 35, remaining book value line 38.

What is a GWG?

A GWG is a depreciable, movable asset of the fixed assets that can be used independently. Its acquisition or production costs, net of any input VAT contained, must not exceed 800 euros for the single asset. You can then deduct them in full as a business expense in the business year of purchase (§ 6 (2) sentence 1 EStG).

An asset cannot be used independently if, according to its business purpose, it can only be used together with other assets and is technically matched to them (§ 6 (2) sentence 2 EStG).

Example: an office chair costs 640 euros net, so 761.60 euros gross with 19 percent VAT. The limit of 800 euros applies to the amount without input VAT; the chair is a GWG and fully deductible in the year of purchase.

GWG or collective item: which is better?

For assets with acquisition costs of more than 250 euros but not more than 1,000 euros, you can form a collective item (Sammelposten) instead of the GWG deduction. It is released, reducing profit, by one fifth in the year of formation and in each of the following four years (§ 6 (2a) EStG). The choice applies uniformly to all assets acquired in a business year: if you choose the collective item, you can deduct only assets up to 250 euros as GWG in that year, and for costs above 1,000 euros you spread the costs over the useful life.

Example: in one year you buy three assets for 400, 600 and 900 euros net, 1,900 euros in total. With a collective item you release 380 euros a year (1,900 divided by 5) for five years. Without it, the assets at 400 and 600 euros are GWG and deductible at once; the one at 900 euros is above 800 euros and is depreciated over its useful life. Which is better for you depends on your profit; if you choose the collective item, it applies to all assets of the year.

How does depreciation work?

For assets that can be expected to be used for longer than a year, you deduct each year the part of the acquisition costs that falls on one year when the costs are spread evenly over the useful life (§ 7 (1) sentence 1 EStG). In the year of purchase the annual amount is reduced by one twelfth for every full month that precedes the month of purchase (§ 7 (1) sentence 4 EStG).

Example (the useful life is only assumed here): in July you buy a machine for 6,000 euros net with a business useful life of 10 years. The annual amount is 600 euros. In the first year six full months precede (January to June), so you deduct 600 × 6/12 = 300 euros; after that 600 euros a year. The useful life that fits your asset comes from the official depreciation tables.

Computers and software

For computer hardware including peripherals and for operating and application software for data entry and processing, the EÜR instructions say a business useful life of one year can be assumed. The acquisition costs can then be deducted in full in the year of purchase. You must still record them in the Anlage AVEÜR.

Which registers must you keep?

Fixed assets belong, with the date of acquisition, the acquisition costs and the depreciation taken, in special registers that are kept continuously (§ 4 (3) sentence 5 EStG). GWG whose value exceeds 250 euros also belong in a special register kept continuously under § 6 (2) sentence 4 EStG; it is enough if the details can be seen from the bookkeeping. GWG are not entered in the Anlage AVEÜR.

Where do they go in the Anlage EÜR?

What	Line
AfA on immovable, intangible and movable assets (movable assets such as machines and vehicles in line 33)	31 to 33
Special depreciation under § 7g EStG	34
Reduction amounts under § 7g (2) EStG	35
Expenses for GWG (§ 6 (2) EStG)	36
Release of a collective item (§ 6 (2a) EStG)	37
Remaining book value of assets that leave	38

If an asset leaves the business, for example through sale, withdrawal or scrapping, you deduct the remaining book value in line 38 as a business expense; this does not apply to assets of the collective item. You record the proceeds of a sale as business income (line 19).

Common mistakes

Applying the 800 euro limit to the gross price. What counts is the amount net of any input VAT contained.
Mixing collective item and GWG. The choice applies uniformly to all assets of the year.
Forgetting the register. GWG above 250 euros and fixed assets must be listed continuously.
Ignoring the month of purchase. In the first year the annual amount is reduced pro rata.
Selling without the remaining book value. When a fixed asset leaves, the remaining book value belongs in line 38.
Guessing the useful life. It follows the official figures, not a feeling.

How it works with VAT GPT

VAT GPT reads uploaded invoices and receipts with AI and sorts them into categories. The EÜR overview has the expense lines "Geringwertige Anschaffungen (unter 800 €)" (low-value purchases under 800 euros) and "Abschreibung teurer Anschaffungen (über 800 €)" (depreciation of expensive purchases over 800 euros). In the EÜR you also record fixed assets and depreciation. You check and confirm the values; sending to the tax office runs through ELSTER with VAT GPT Pro.

Everything is in one place: advance VAT return, annual VAT return, OSS return, EÜR, trade tax and income tax returns. With Go you use all Pro features free of charge for 30 days. Get to know VAT GPT or create an account right away.

What VAT GPT does not do

VAT GPT is not tax advice – for example on which useful life applies to an asset.
VAT GPT does not prepare corporation tax returns (for example for a GmbH or UG).

What does VAT GPT cost?

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

Frequently asked questions

Up to what amount is a GWG deductible at once? Up to 800 euros, net of any input VAT contained (§ 6 (2) EStG).

What is a collective item? An alternative for assets of more than 250 up to 1,000 euros, released over five years at one fifth a year (§ 6 (2a) EStG).

How do I depreciate a laptop? For computer hardware and software a useful life of one year can be assumed; the costs are then deductible in the year of purchase.

Do I have to keep a register? Yes, for fixed assets and for GWG above 250 euros.

Which line takes GWG? Line 36; the release of a collective item goes in line 37.

What happens when I sell a fixed asset? The remaining book value is a business expense in line 38; the proceeds are business income.