Business, tax and funding
small-business rule
In short and in plain language
The small-business rule is a special rule for firms with low sales.
It is part of the German law on value added tax.
Those who use it usually charge no such tax on their bills. In return, they cannot get back the tax they have paid.
Bills and prices then usually carry a note about this.
Definition
The small-business rule is a special provision in German VAT law for businesses with low turnover. Those who use it usually charge no VAT on invoices and in return cannot reclaim VAT they have paid. Invoices and price information then typically carry a note explaining this.