If you are not liable for VAT, you fall under the small business scheme in accordance with Section 19 of the German VAT Act (USTG) – one of these two scenarios applies to every rights holder. If you fall under the small business scheme and your income from secondary employment, such as remuneration from GVL, is less than EUR 25,000, this does not mean that you own or have registered a small business.

Your VAT liability simply falls under this scheme. This means that your GVL distributions will be paid to you without VAT, as you do not submit a VAT return to the tax office. You can also make use of the small business scheme if you are in permanent employment subject to income tax.