The article Digitalization by law: This is changing for the self-employed and companies by Carsten Lexa first appeared on BASIC thinking. You can always stay up to date with our newsletter.
A new chapter will begin in 2025 for the self-employed and entrepreneurs – at least from a legal perspective. Some laws are intended not only to simplify bureaucratic processes, but also to offer new opportunities to make a business more efficient and profitable. An overview.
E-invoicing: The future of accounting
Imagine you still write invoices using Word or Excel. From 2025 this will be over – at least if you send them to companies. The obligation to issue electronic invoices (e-invoices) comes into force. This means that invoices not only have to be created digitally, but also sent in a specific format (for example ZUGFeRD or XRechnung).
But don’t panic if you’re not prepared for it yet. Transition periods for creating and sending e-invoices apply until the end of 2026 or 2027. This means, for example, you can still send PDF invoices if the recipient agrees. Small businesses are exempt from the obligation to create e-invoices, but must be able to receive them.
Shortened retention periods: Digitizing saves space
Speaking of “paperwork”: the retention period for invoices has been shortened from ten to eight years. Finally more space on your hard drive or in the archive cabinet.
Small business regulation: More sales possible
Are you still a small business owner or are you already too big for that? In 2025, the sales limit will be raised: You can now earn up to 25,000 euros in the previous year (previously: 22,000 euros) and 100,000 euros in the current year (previously: 50,000 euros) without losing your status as a small business owner.
I think this is good news for anyone looking to grow on the threshold without immediately falling into the more complex tax obligations of a larger company.
Advance VAT return: Less paperwork
The limit for the obligation to submit an advance VAT return has also been raised. If your sales tax liability is less than 2,000 euros (previously: 1,000 euros), you can be exempt from the pre-registration. If it is between 2,000 and 9,000 euros, you can report the sales tax quarterly (previously: between 1,000 and 7,500 euros).
Minimum wage and mini-jobs: more attractive for your team
The statutory minimum wage increases by 41 cents to 12.82 euros per hour. At the same time, the earnings limit for mini-jobs will be raised to 556 euros per month (previously 538 euros). For employers, this means that the attractiveness of mini-jobs is increased (even if only slightly).
Digital employment contracts: Goodbye paper
You can now conclude employment contracts digitally. No more annoying printing and signing – everything is done in text form and electronic confirmation. This not only saves time and finally brings digitalization into the employment process.
Accessibility: digitally accessible to everyone
Websites and apps must become barrier-free. Maybe you think this doesn’t concern you. But accessibility is not only required by law, it is also valued. Those who make their products and services more inclusive reach new target groups and improve their image at the same time.
Economic Identification Number: Bye-bye paper forms
Finally, no more hunting for tax numbers, commercial register numbers etc. From 2025 everything will be easier – thanks to the business identification number (W-IdNr.). This uniform number simplifies communication with authorities and saves time that you would rather invest in your projects.
Tax allowance: more money for you
One of the most pleasing news: The basic allowance for your income has been increased to 12,096 euros. This means more of your income remains tax-free. A real plus point, especially if you are just starting out or want to invest in new technologies.
Conclusion: New laws for the self-employed and companies
Complaining is always easy. In fact, the new year brings with it some welcome changes for self-employed people and entrepreneurs. What is particularly pleasing is that digital applications are increasing and important improvements have been made. It is a shame that the limit for low-value goods has not been raised, as was planned for a long time. But you probably can’t have everything.
What makes me positive: In the public discussion, of course with a view to the upcoming federal election, there is a lot of talk about how important the economy and the corresponding framework conditions are. It seems as if politicians have finally realized that this is where the greatest potential and greatest challenges lie.
So let’s hope for further relief and look forward to the current ones – and I continue to dream of tax exemption for young companies and the “one-stop show” when setting up a company.
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The article Digitalization by law: This is changing for the self-employed and companies by Carsten Lexa first appeared on BASIC thinking. Follow us too Google News and Flipboard.
As a tech industry expert, I believe that digitalization by law is a necessary and inevitable shift that is changing the landscape for both self-employed individuals and companies. With the increasing reliance on technology in all aspects of our lives, it is crucial that laws and regulations are updated to reflect this digital reality.
For self-employed individuals, digitalization by law means that they must adapt to new requirements and standards for conducting business online. This may include ensuring that their websites are compliant with data protection regulations, using secure payment methods, and keeping accurate digital records of their transactions. While this may require some initial investment and effort, ultimately it can help self-employed individuals streamline their operations and reach a wider audience.
For companies, digitalization by law presents both challenges and opportunities. On one hand, companies must ensure that they are compliant with complex data protection laws, such as the GDPR in Europe, which can require significant resources to implement. On the other hand, embracing digitalization can help companies improve efficiency, increase productivity, and better serve their customers.
Overall, digitalization by law is a positive development for the tech industry as it encourages innovation, transparency, and accountability. By staying informed and adapting to these changes, self-employed individuals and companies can thrive in the digital age.
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