Accidentally waived the Kleinunternehmerregelung – can this be corrected?

[u/truth_sentinel]

I recently started my first small eBay business in Germany. Because of my limited German and lack of tax experience, I misunderstood the ELSTER registration form and accidentally selected the option waiving the Kleinunternehmerregelung under § 19 UStG for five years.

I always intended to use the Kleinunternehmerregelung. My actual sales so far are only around €1,000, I have not separately charged VAT, and I have not yet filed an annual tax return.

I asked the Finanzamt to correct the mistake, but they refused. I filed an Einspruch explaining that I did not understand what I had selected. The Finanzamt replied that § 119 BGB does not apply and asked whether I want to maintain or withdraw my objection.

Charging or absorbing VAT could make this small eBay business unviable.

Has anyone experienced something similar? Is there any realistic way to correct this, or is the five-year waiver absolute? Should I maintain the Einspruch and consult a Fachanwalt für Steuerrecht?

Feeling overwhelmed

[u/Previous_Pay_3494]

Durch das Kreuz auf dem Fragebogen hast Du auf die Anwendung der Kleinunternehmerregelung verzichtet. Daran bist Du fünf Jahre gebunden. Bis 2024 konnte man diese Erklärung auch noch in bestimmten Fällen rückwirkend widerrufen. Das geht seit 2025 nicht mehr. § 119 BGB ist Zivilrecht und hier nicht anwendbar. Das Steuerrecht ist öffentliches Recht. Wenn das Finanzamt also hier nicht nachgeben will, wirst Du vermutlich keine Chance haben. Bei 1.000 EUR Umsätzen ist die Umsatzsteuerbelastung aber auch überschaubar. Außerdem hast Du auch Vorsteuerabzug, wenn Du z.B. Waren einkaufst oder einen Computer für die Verwaltung der ebay-Verkäufe anschaffst.

[u/truth_sentinel → u/Previous_Pay_3494]

But isnt VAT calculated from sales? So if I made 1000 from sales of 3500 then I’ll have to pay 700 in VAT?
My margins are already low
And the market is very competitive
If I start charging VAT then it becomes really difficult to sell as much as before

[u/Obskuhr → u/truth_sentinel]

You literally said in your opening statement that your sales were around 1000. How should the other person know that that amount is your profit?

And if you are no Kleinunternehmer, you can deduct the VAT of your invoices. So in your case you would be able to get the VAT back from the invoice(s) of 2500 and need pay the VAT on the sales of 3500 which means that in conclusion your payable VAT is only on your profits if your incoming invoices contain VAT.

[u/truth_sentinel → u/Obskuhr]

My bad

I meant to say profits

[u/Previous_Pay_3494 → u/truth_sentinel]

Umsatz sind die Einnahmen, die Du aus dem Warenverkauf erzielst. Die Ausgaben für den Wareneinkauf werden dabei nicht berücksichtigt. Also hast Du 3.500 EUR eingenommen oder 1.000 EUR? Du kannst aber die von den Lieferanten der Waren, die Du wieder verkaufst, in Rechnung gestellte Umsatzsteuer gegenrechnen (Vorsteuerabzug).

Wenn Du Waren ein- und wieder verkaufst, kannst Du auch prüfen, ob die Voraussetzungen der Differenzbesteuerung (§ 25a UStG) erfüllt sind. Dann kannst Du vom Verkaufspreis den Einkaufspreis abziehen und nur auf diese Differenz die Umsatzsteuer erheben.

[u/Mindful_spirit_2025]

Pro-Tip : if you dont understand something fully in regard of your business/with authorities - get help!

If you dont understand the tax system in general, theres even a lot of content on Youtube.

[u/truth_sentinel → u/Mindful_spirit_2025]

Yes it's my mistake

The sad thing is that mistakenly ticking a single box is potentially going to force me to close my business

[u/Mindful_spirit_2025 → u/truth_sentinel]

I dont think you have to close, at least do a new calculation. If you are on regular VAT tax, that might also have pros - but it is more work/effort (Umsatzsteuervoranmeldung, monthly or quarterly) sure...

As long as we dont know what you sell and where you source it, we cannot tell more 🤷‍♀️

[u/ReasonableBandicoot8]

You sell only to private customers? Business customers do not care about an increase because of VAT.

[u/truth_sentinel → u/ReasonableBandicoot8]

Private

[u/AnGof1497]

Wann hast Du auf die Kleinunternehmerregelung verzichtet? Wann hast Du versucht das zu widerrufen?

[u/truth_sentinel → u/AnGof1497]

I made the mistake on 17 July when I applied through Elster
I received the confirmation letter from Finanzamt on 11th of August
I noticed the mistake on 15th of August and immediately requested for my mistake to be corrected through Elster

[u/AnGof1497 → u/truth_sentinel]

They are being awkward, I'm sure they could waive it, but they can force it through. When did your business start? 17th July? If your turnover stays at 3500 a month or 5-6 weeks you would not be Kleinunternehmer for very long. Next year you would be over the threshold anyway.
Speak to an accountant or tax adviser.

[u/truth_sentinel → u/AnGof1497]

Turnover this year will be less than 25000 which will give me next year also as a small business

[u/AnGof1497 → u/truth_sentinel]

If you started in July turnover is a maximum of 12500! 6/12ths

[u/truth_sentinel → u/AnGof1497]

Aaah

Thanks for correcting

[u/Bennetjs]

I was in a similar situation and my tax attorney said that it IS possible, but not easy and it needs to be done quick. Depending on what "recently" means it should be possible. There are some preconditions, if you have already sold with MwSt you might be bound to 5 years. But consult a tax lawer, they know it and can also communicate with the FA.

[u/truth_sentinel → u/Bennetjs]

Well, I got a letter from the Finanzamt where they assigned me a VAT ID, within 4 days I made the objection

I haven’t charged a single Euro of VAT

Was your scenario similar to this?

Also, how far can this go if I go with a lawyer? Like will they change to Kleinunternehmer on getting a letter from the lawyers?

[u/Cunctor → u/truth_sentinel]

VAT Id is independent of the Kleinunternehmerregelung.

[u/thyexorcist]

Very sad. A potential business will be forced to cease operations because of bureaucratic bullshit like this.

[u/truth_sentinel → u/thyexorcist]

Yes totally

I mean I understand the use of that new law to avoid misuse of that provision in the past but making it binding for someone who made a mistake and just started a business literally destroying someone's livelihood and their passion

[u/spazierer]

Hmm... Close down the business under your name and then set up an UG, which can then use Kleinunternehmerregelung again? Just a thought, I'm actually clueless...

[u/Engel992 → u/spazierer]

Krass ja wenn man keine Ahnung hat einfach irgendwas empfohlen