The Annual Tax Act 2024 brings significant changes for small businesses. The turnover limits will be raised to EUR 25,000 and EUR 100,000 and be considered net limits. And from 2025, small businesses from other EU countries may benefit from a new EU small business exemption in Germany, as will German businesses in other EU countries. In addition, a special reporting procedure and a new small business identification number will be introduced for German taxpayers who make use of the small business exemption in other EU countries. Unfortunately, the new administrative requirements and the lack of uniform thresholds in the individual EU countries will lead to increased complexity and make the application of the new regulation less attractive.