From 2020, a new threshold (EUR 800) for low-value assets

For the most part, acquisition or production costs of Tangible fixed assets as a profit-reducing depreciation amount can only be claimed over their useful life. An exception applies to so-called low-value assets of fixed assets that cost no more than EUR 400: The acquisition or production costs of these low-value assets can be fully deducted as business expenses in the year of acquisition/production. From 2020 Will the limit for low-value assets on EUR 800.- raised – this regulation is for the first time on fiscal years to be applied, which after 31.12.2019 begin. From a tax perspective, it may therefore be sensible to postpone the acquisition date of assets whose costs are between EUR 400 and EUR 800 accordingly.

If you are entitled to a deductible input tax, this limit of EUR 400 or EUR 800 is understood to be exclusive of VAT. However, if you are not entitled to deduct input tax, these limit amounts are inclusive of VAT (gross purchase price).