Small Business Buying in the EU: The 12,500 Euro Acquisition Threshold

As a small business (Kleinunternehmer) you pay German tax on purchases from other EU countries only when your acquisitions exceed 12,500 euros a year (acquisition threshold, § 1a Abs. 3 UStG). The small business scheme applies to your sales, not to your purchases: an intra-Community acquisition is not covered by § 19 Abs. 1 UStG. Even below the threshold you become liable to acquisition tax as soon as you use your VAT ID towards the supplier.

Last updated: 29 October 2026

In short

Threshold: up to 12,500 euros of acquisitions in the previous year and, as expected, in the current year, there is no taxable acquisition in Germany (§ 1a Abs. 3 UStG).
VAT ID: using it towards the supplier waives the threshold, for at least two calendar years (§ 1a Abs. 4 UStG).
Exception: new vehicles and goods subject to excise duty (alcohol, tobacco, mineral oil) are always subject to acquisition tax (§ 1a Abs. 5 UStG).

What is an intra-Community acquisition?

An intra-Community acquisition exists when an item reaches Germany from another EU country in a supply to you and you buy it as a business for your business (§ 1a Abs. 1 UStG). Example: you buy goods from a wholesaler in Poland and have them delivered to Germany.

The small business exemption does not cover the acquisition. The Federal Ministry of Finance writes in the VAT Application Decree: the import of goods and the intra-Community acquisition by a small business are not covered by § 19 Abs. 1 UStG (section 19.1 para. 1 sentence 2 UStAE). That is why there is a separate rule for you: the acquisition threshold.

What this means for you: your purchases in the EU follow their own rules, even if your sales are exempt.

When does the 12,500 euro threshold apply?

There is no intra-Community acquisition if both conditions of § 1a Abs. 3 UStG are met:

You make only exempt sales which exclude input VAT deduction.
The total of the consideration for your acquisitions did not exceed 12,500 euros in the previous year and is not expected to exceed it in the current year.

As a small business you make such sales (§ 19 Abs. 1 UStG; § 15 Abs. 2 UStG).

What counts is the total of the consideration of all acquisitions from all EU countries, without VAT. The decree puts it this way: the total of acquisitions from all EU member states, except new vehicles and goods subject to excise duty (section 1a.1 para. 2 UStAE). If you did not exceed the threshold last year and do not expect to this year, acquisition tax can be left out even if the actual acquisitions exceed 12,500 euros during the year (section 1a.1 para. 2 sentence 5 UStAE).

Situation	Result
Acquisitions up to 12,500 euros last year, expected the same this year, no VAT ID used towards the supplier	No taxable acquisition in Germany
Acquisitions above 12,500 euros last year or expected above this year	Taxable acquisition: acquisition tax
VAT ID used towards the supplier	Waiver of the threshold: acquisition tax, at least two calendar years
New vehicles or goods subject to excise duty	Always acquisition tax

What this means for you: add up your EU purchases net for the calendar year and compare them with 12,500 euros.

What happens if you are above the threshold?

Then VAT arises on the acquisition. The rate depends on the goods: generally 19 percent, for certain items 7 percent (§ 12 UStG). As a small business you have no input VAT deduction (§ 15 Abs. 2 UStG), so the acquisition tax is a cost for you. An example with our own figures: you buy goods for 20,000 euros net from Poland in a year, taxed at 19 percent. The acquisition tax is 3,800 euros.

You also have to file VAT returns although you are a small business. The law obliges businesses that owe tax only on transactions under § 1 Abs. 1 Nr. 5 UStG (intra-Community acquisition) to file them (§ 18 Abs. 4a UStG). § 19 Abs. 1 Satz 2 UStG expressly leaves § 18 Abs. 4a untouched. You file returns only for the periods in which you have to declare the tax on these transactions.

What this means for you: above the threshold you pay acquisition tax without input VAT deduction and file returns for the months or quarters with acquisitions.

What does using the VAT ID mean?

If you use a VAT ID issued to you towards the supplier, this counts as a waiver of the acquisition threshold (§ 1a Abs. 4 Satz 2 UStG). The waiver binds you for at least two calendar years (§ 1a Abs. 4 Satz 3 UStG). With a waiver the acquisition is always subject to acquisition tax (section 1a.1 para. 2 sentence 8 UStAE).

As a small business you have no VAT ID unless you apply for one. How that works and what you need it for is in Applying for a VAT ID. If you give it to EU suppliers, acquisition tax follows. Whether that pays off for you is a question for tax advice.

What this means for you: give your VAT ID to EU suppliers only if you really want acquisition tax.

Which mistakes happen often?

Checking the threshold per delivery only. It applies to the total of all acquisitions in a year.
Calculating gross instead of net. What counts is the consideration without VAT.
Giving the VAT ID out of habit. It leads to acquisition tax, even below 12,500 euros.
Forgetting new vehicles and alcohol, tobacco or mineral oil. They are not covered by the threshold.
Filing no return after exceeding the threshold. Even as a small business you must file one for the acquisitions.

What this means for you: keep a yearly total of your EU purchases and think about the consequences of the VAT ID.

How VAT GPT helps

VAT GPT is the tax software for online sellers, self-employed people and small businesses in Germany. It calculates and files in one place, in this order:

the OSS return
VAT
the EÜR
trade tax
income tax

Upload: you upload your invoices and receipts; the AI reads amounts, countries and tax rates.
Check: you review and confirm the values.
Send: with VAT GPT Pro the VAT return goes through ELSTER to the tax office.

Not included: VAT GPT does not decide for you whether you exceed the acquisition threshold or should give your VAT ID. That is not tax advice. There are Free, Go (30 days free with all Pro features) and Pro. Try it for free

Frequently asked questions

Do I have to pay VAT on EU purchases as a small business? Only if your acquisition is taxable: if you exceed the 12,500 euro acquisition threshold, waive it, or buy new vehicles or goods subject to excise duty (§ 1a UStG).

How high is the acquisition threshold? 12,500 euros total consideration for acquisitions, not exceeded in the previous year and not expected to be exceeded in the current year (§ 1a Abs. 3 UStG).

What happens if I give my VAT ID to the EU supplier? It counts as a waiver of the acquisition threshold and binds you for at least two calendar years (§ 1a Abs. 4 UStG).

Does the small business scheme apply to purchases too? No. The intra-Community acquisition is not covered by § 19 Abs. 1 UStG (section 19.1 para. 1 UStAE).

Do I have to file a VAT return as a small business if I acquire goods from the EU? Yes, if the acquisitions are taxable, for the periods in which you have to declare the tax (§ 18 Abs. 4a UStG).