Small-business VAT exemption

Staying a Kleinunternehmer looks obviously right: no VAT on the invoice, no advance returns, a lower price for the guest. It costs you the input tax on everything you buy — and in the year a flat is bought, renovated and furnished, that is the largest single sum the letting will ever produce. Waiving the exemption and living with the five-year binding period is frequently the better trade. Two things routinely get lost. Accommodation under six months is reduced-rate at 7 %; the services sold alongside it — cleaning, parking, breakfast, pets — are not. And since 2025 the threshold is two numbers: 25,000 euros in the previous calendar year and 100,000 in the current one, where crossing the second ends the exemption immediately, mid-year, from the transaction that breaks it. This is a calculation, not tax advice.