From now on: Less bureaucracy

The second Bureaucracy Reduction Act is in effect. Most of the new regulations have been in effect since July 6, with the tax law changes retroactive to January 1, 2017.

This article is part of the special topic Bureaucratic madness in the craft industry

Less bureaucracy in tax law and a modernized Crafts Code: The law is intended to ease the burden, especially on small businesses. The German Confederation of Skilled Crafts (ZDH) welcomes the regulations. They would "streamline the complex legal situation in key areas," explained ZDH Secretary General Holger Schwannecke. 

Checklist: These are the most important changes!

• The Crafts and Trades Act is being modernized: Chambers of Crafts and Trades will now be able to include email addresses and websites in the register of crafts and trades. Circulars, for example, can then be sent more easily electronically, saving time and money.
• The limit for small-value invoices increases retroactively from 150 euros to 250 euros as of January 1, 2017. Up to this amount, mandatory information such as the invoice number or separate VAT identification is not required.
• The calculation of social security contributions is to be simplified: In the future, all companies will be able to use the simplified contribution procedure. Contributions whose actual value for the current month is not yet known can then be calculated based on the value for the previous month. This so-called simplified solution eliminates the need for previous estimation of the values.
• If the payable income tax is more than 1.080 euros but not more than 4.000 euros, you no longer had to submit a payroll tax return monthly, but only quarterly: This limit increases from 4.000 to 5.000 euros.
• The Threshold for immediate write-off sincreases to 800 euros. Tablets, smartphones, or office supplies can then be fully depreciated for tax purposes in the year of purchase.
• The retention period for delivery notes will be relaxed: in future, they will end upon receipt of the invoice. The same applies to sent delivery notes – their retention period expires when the invoice is sent.
• The flat-rate limit for short-term employees will be raised from an average daily wage of €68 to €72. This adjustment corresponds to the increase in the minimum wage to €8,84.