Taxes on Small Shops (Kiosks) in Germany
(Steuern für Kiosk-Betreiber)

1. Is a kiosk considered a business?

Yes. Any kiosk where goods are sold (cigarettes, drinks, sweets, newspapers, etc.) is treated as a commercial business (Gewerbebetrieb) and must:

• be registered with the Gewerbeamt (trade office),

• submit regular tax returns,

• pay various taxes depending on its activities.

2. Which taxes apply to a kiosk?

3. Example: VAT (MwSt) in a kiosk

4. How are the taxes calculated?

Taxable profit = total sales – business expenses

Typical expenses:

• Purchase of goods (wholesale prices)

• Rent, electricity, water, heating

• Wages and salaries (if employees are hired)

• Insurance (property, theft, liability)

• Equipment (coolers, cash registers, shelves)

On this basis:

1. Income tax

   • The owner pays income tax on his/her business profit.

2. VAT (Umsatzsteuer)

   • Charged on sales,

   • unless the business uses the small business scheme (Kleinunternehmerregelung).

5. Can a kiosk owner use the Kleinunternehmerregelung?

Yes, if:

• annual turnover in the previous year did not exceed €22,000, and

• expected turnover in the current year does not exceed €50,000.

In this case:

This scheme is generally only attractive if operating costs and input VAT are relatively low.

6. Typical deductible business expenses

The following costs can usually be claimed as business expenses:

• Purchase of goods (wholesale for cigarettes, drinks, snacks, newspapers)

• Rent, electricity, water, heating for the shop

• Insurance (property, inventory, theft, liability)

• Wages and social security contributions for employees

• Equipment such as fridges, freezers, shelving, cash register systems

• Accounting and tax advisory fees

• Waste disposal and stand fees (e.g. at stations, markets, fairs)

7. Additional obligations for kiosk operators

• Maintain proper sales records and keep all invoices and receipts

• Use a certified cash register system with TSE (technical security device) in line with the Kassensicherungsverordnung (KassenSichV) since 2020

• File periodic VAT returns (Umsatzsteuervoranmeldungen) and annual VAT returns where required

• Comply with legal rules for the sale of tobacco products (e.g. no sales to minors) and alcoholic drinks

8. Useful terms

9. Summary

• There is no special “kiosk tax”. Instead, kiosk operators pay:

  • income tax + trade tax + VAT.

• The VAT rate depends on the type of goods (7% or 19%).

• Tobacco and alcoholic beverages often include indirect taxes such as tobacco tax.

• All business-related expenses can reduce the taxable profit and thus the tax burden.

• Proper bookkeeping, cash register compliance and invoice handling are essential to avoid penalties and problems with tax audits.

The editorial team of the website strives to provide accurate information based on thorough research and multiple sources. Nevertheless, errors may occur or some details may be incomplete or not fully verified. Please treat the information in this article as an initial reference only and always consult the competent authorities or a professional tax advisor for binding and up-to-date guidance.