Very similar to the French system: if you are a sole operator under a certain revenue threshold you do not charge and cannot get rebates on TVA; if you are a sole operator with a standard company structure, you charge and get rebates for TVA.
Yes, that’s in fact another twist that wasn’t discussed above: the small business does not get rebates for TVA it pays itself.
That’s a disadvantage, if you’re then selling to a business customer, because then, the TVA DOES get paid twice.
But most small businesses are services businesses who do not have much purchases. And those who do can - at least in Germany- get a VAT ID and then write invoices with VAT.
