GWG und Sammelposten: Anschaffungen zum Jahresende richtig absetzen

A new laptop, an office chair, tools or a camera: many businesses still make purchases before the year turns. Whether you can deduct them in full right away or have to depreciate them over several years depends on two thresholds in the Income Tax Act. We explain the low-value asset (GWG) rule under § 6 (2) EStG, the collective item (Sammelposten) under § 6 (2a) EStG, the special rule for computers and software, and how to time December purchases wisely.

The value tiers at a glance

What counts is the acquisition or production cost excluding VAT, provided you can deduct input VAT. Input VAT is then not part of the acquisition cost (§ 9b (1) EStG). If you are a small-business owner without input VAT deduction, the gross amount counts.

• Up to EUR 250 net: You book the purchase straight away as a business expense. No separate register is required.
• Up to EUR 800 net: This is a low-value asset (GWG). You may deduct the full cost in the year of purchase (§ 6 (2) EStG).
• EUR 250.01 to 1,000 net: Alternatively you can put the assets into a collective item that is released over five years, one fifth each (§ 6 (2a) EStG).
• Over EUR 1,000 net: Regular depreciation over the useful life.

These thresholds have applied unchanged since 2018. At that time the GWG limit was raised from EUR 410 to EUR 800 and the lower bound of the collective item from EUR 150 to EUR 250.

GWG: immediate deduction up to EUR 800

A GWG is a depreciable, movable and independently usable fixed asset. Independently usable means the asset can be used without other items. An office chair is independently usable; a spare part that only works together with a machine is not.

The advantage is obvious: you write off the cost in full in the year of purchase, regardless of the month. A laptop for EUR 790 net delivered on 29 December reduces that year's profit by the full EUR 790. With regular depreciation you would only deduct the share for December.

A recording duty applies to GWG above EUR 250: they must be entered in a continuously maintained register (§ 6 (2) sentence 4 EStG). In practice a dedicated GWG account with meaningful booking texts is sufficient.

Collective item: the alternative up to EUR 1,000

With the collective item you pool all assets costing more than EUR 250 and up to EUR 1,000 in a financial year. You depreciate the total over five years, one fifth per year. Special features:

• The collective item is formed per financial year.
• It applies to all assets of that year in the stated value range; you cannot pick single items.
• If an asset leaves early, for instance through sale or defect, the collective item does not change. The release continues.
• There is no month-by-month calculation. The full fifth is taken in the year of purchase.

The choice: either or

You can exercise the choice between GWG immediate deduction and collective item only uniformly for all assets of a financial year (§ 6 (2a) sentence 5 EStG). So you cannot write off the laptop as a GWG and at the same time put other assets up to EUR 1,000 into a collective item. For assets up to EUR 250 the choice does not apply; you always deduct them immediately.

Which option is better depends on your purchasing pattern. If you buy many assets between EUR 250 and EUR 800, immediate deduction is usually more favourable. If most purchases fall between EUR 800 and EUR 1,000, the collective item is the only way to avoid depreciating them over their full useful life.

Special rule for computers and software

Computer hardware and software have their own relief. With its letter of 22 February 2022, the Federal Ministry of Finance (BMF) set the useful life of computer hardware (desktop PCs, notebooks, monitors, printers, scanners and the like) and of operating and application software for data entry and processing at one year. The result: you can expense the cost in full in the year of purchase or in later years, without the EUR 800 limit applying.

A notebook costing EUR 1,800 net delivered at the end of December can therefore still be fully deducted in the same year. Under this rule the useful life is the yardstick, so you are not bound by the GWG and collective-item choice.

When does the purchase count?

What matters is neither the invoice date nor the payment date but the date of delivery, i.e. when you obtain economic control of the asset. If you order on 20 December but delivery is in January, the purchase counts for the new year. For deliveries by freight forwarder or from abroad, clarify the date early.

Tip: Keep the delivery note and invoice and document the delivery date. Tax audits like to ask about purchases made right before year-end.

Year-end checklist

1. Sort upcoming purchases: which are below EUR 250, 800 and 1,000 net?
2. Decide: immediate deduction or collective item for the financial year?
3. Treat computers and software separately (useful life one year).
4. Check delivery dates so the purchase still counts in the old year.
5. Keep the GWG register or GWG account up to date for assets over EUR 250.
6. Plan larger purchases above EUR 1,000 with the IAB or declining-balance depreciation.

With tidy receipt storage and an orderly GWG register, you avoid queries during year-end closing and the tax return. We are happy to check with you which option works best for your business.

Frequently asked questions

Is the GWG limit gross or net?

If you can deduct input VAT, it is net. As a small-business owner without input VAT deduction, the limit is EUR 800 including VAT.

Can I write off a GWG in a later year?

No. The immediate deduction takes place in the year of purchase. If you don't use it, you depreciate the asset regularly over its useful life.