Information, not advice. This is general information, not tax or legal advice and no substitute for it. Figures, thresholds and deadlines change with every tax law — check them for your year or ask someone who is licensed. Wherever money or liability is involved, the text says so.
The small-business rule under § 19 UStG (German VAT Act) is the obvious choice for most resellers. You add no VAT, pay none over and file no advance returns.
The thresholds
Since 2025 two values apply: the previous year’s turnover must not have exceeded €25,000, and in the current year it must not exceed €100,000. If the second threshold is broken during the year, the rule ends from that point — not only in the following year.
What speaks for it
- No paperwork with advance VAT returns.
- Your price is your proceeds — when selling to private individuals that is a real advantage of around 19 %.
- Fewer sources of error when invoicing.
What speaks against it
- You get no input VAT back — not on goods, not on packaging, not on equipment.
- With larger purchases that can get expensive.
- Invoices must carry a note that no VAT is shown.
Margin scheme — the special case for second-hand goods
Anyone who is regularly liable for VAT and buys goods from private individuals can use the margin scheme under § 25a UStG: only the margin between purchase and sale is taxed, not the full selling price. For buying and selling second-hand clothing this is often the fitting form — but it requires clean records per item.