In Germany, there are specific turnover and profit thresholds that determine the obligation to switch from simplified accounting (Einnahmenüberschussrechnung – EÜR) to full accounting with a balance sheet (Bilanz).
Over the past five years, these thresholds have changed:
| Year | Turnover Threshold | Profit Threshold | Obligation to Keep Balance Sheet |
|---|---|---|---|
| 2020 | €600,000 | €60,000 | Yes |
| 2021 | €600,000 | €60,000 | Yes |
| 2022 | €600,000 | €60,000 | Yes |
| 2023 | €600,000 | €60,000 | Yes |
| 2024 | €800,000 | €80,000 | Yes |
| 2025 | €800,000 | €80,000 | Yes |
As of January 1, 2024, under the “Wachstumschancengesetz” (Growth Opportunities Act), the thresholds have been increased to:
- €800,000 turnover per year,
- €80,000 profit per year.
Important Notes:
- The obligation to switch to full accounting arises when either one of these thresholds is exceeded.
- The transition to full accounting occurs only after receiving a written notice from the tax office, and it applies to the fiscal year following the year in which the thresholds were exceeded.
- Freelancers (e.g., doctors, lawyers) are generally exempt from the obligation to maintain full accounting, regardless of their turnover or profit levels.
