An online shop alongside your studies sounds like a manageable project: one product, one platform, a few orders each week. In Germany, however, it quickly becomes a registered trade with VAT questions and mandatory details in the shop itself. This guide explains which steps apply, what to budget and where to get clarity from the trade office or tax office before the first sale.
Short answer: Anyone who sells goods regularly usually runs a trade that must be registered with the local trade office. The small business rule under § 19 UStG applies only if turnover does not exceed 25,000 euros in the previous year and 100,000 euros in the current calendar year. Your municipality sets the registration fee. Last updated: November 2026.
The most important points at a glance
- Anyone who sells regularly must register the trade. The obligation follows from § 14 of the Trade Regulation Act (Gewerbeordnung), regardless of the size of the shop.
- The small business rule under § 19 UStG (Umsatzsteuergesetz, the German VAT act) has two limits: 25,000 euros in the previous year and 100,000 euros in the current year.
- The registration fee differs between municipalities, so ask your local office what applies.
- Ongoing costs come mainly from platform fees, payment services and shipping, not from the registration itself.
- Above 20 hours per week, self-employment counts as a main occupation, which affects your health insurance.
Do I have to register a trade if I sell on the side?
The decisive question is not how big the shop is but whether you intend to earn income from the sales on a lasting basis. Under § 14 of the Trade Regulation Act, every trade must be notified. The notification goes to the trade office of your city or municipality. If you only sell individual items from your own belongings now and then, you usually do not run a trade. A shop with purchasing, storage and regular orders almost always falls under the obligation.
If you are unsure, the trade office or the responsible chamber of industry and commerce (Industrie- und Handelskammer) can advise you. Bring your questions about registration and VAT to the appointment, so you do not need a second visit.
Marketplace or your own shop?
Many students start on a marketplace because the technology, payment handling and a customer base already exist. The price is a commission per sale or a monthly fee, which the provider lists on its pricing page. An own shop instead brings costs for domain, hosting, payment processing and legal texts, but you keep the customer relationship.
Whichever route you choose, the registration duty applies. A platform does not handle your registration with the trade office or your tax duties towards the tax office.
What does the start cost?
The registration itself is usually the smallest item. The table shows which items to plan for and where to find each amount. The authorities and providers publish the exact figures, because they vary by municipality and provider.
| Item | What to plan for | Where to find the amount |
|---|---|---|
| Trade registration | One-off administrative fee | Fee schedule of your trade office |
| Marketplace or shop software | Commission per sale or monthly base fee | Pricing page of the provider |
| Payment service | Fee per transaction | Price overview of the payment service |
| Shipping and packaging | Postage, material, returns | Rates of your shipping provider |
| Legal texts | Imprint, privacy policy, cancellation notice | Offer from a provider or legal advice |
When do I have to show VAT?
The small business rule under § 19 UStG exempts you from VAT if your turnover in the previous calendar year did not exceed 25,000 euros and does not exceed 100,000 euros in the current calendar year. If you stay within these limits, your invoices show no VAT, but you cannot claim input VAT on your purchases either.
A worked example. Assumption: your shop earns a net turnover of 18,000 euros in 2026. Then you can usually continue as a small business in 2027, provided your turnover in 2027 stays below 100,000 euros. Assumption: your turnover in 2026 is 30,000 euros. Then the regular taxation applies in 2027, because the previous-year limit has been exceeded.
The law ties the exemption to turnover not exceeding 100,000 euros in the current calendar year (section 19(1) sentence 1 UStG, text retrieved 2 November 2026). According to the tax portal Lexware (as of 25 August 2026), regular taxation applies from the first turnover that crosses the limit, so the change does not wait until the new year. How to treat an excess in your specific case, clarify with the tax office.
Which duties apply in the shop itself?
Besides the registration, you have duties that apply directly in the shop: a complete imprint, a privacy policy, correct price information and a cancellation notice for consumers. The requirements in individual cases change with court decisions. A template therefore does not replace a review of your specific offer, and because of the risk of warning letters from competitors, legal advice before going live is worthwhile.
How does the shop affect health insurance and student status?
Part-time self-employment remains unproblematic for students as long as the weekly hours limit is respected. According to the DAK health insurer, self-employment may comprise at most 20 hours per week, and more counts as a main occupation. Family insurance also ends when income exceeds 565 euros per month, a value that applies in 2026. Your health insurance fund makes the final assessment, so ask before you plan larger turnover. For more, see the German guide Selbstständig im Studium: Gewerbe, Steuern und Krankenversicherung (in German).
Frequently asked questions
Do I need a company name for my shop?
Not necessarily. As a sole trader you can trade under your own name. A fictional business name is possible as long as it is not misleading and you state it to the trade office. The imprint must in any case show your full name and a postal address where legal documents can be served.
Do I have to file a tax return?
Yes, profits from the shop belong in your income tax return. As a small business owner you are exempt from VAT, but not from income tax. You therefore need a clean record of income and expenses from the first sale onwards.
What happens if I forget to register?
You can still register later. A late notification can, however, lead to queries and warnings. Clarify the matter with the trade office promptly rather than letting sales continue.
When does the shop pay off financially?
That depends on margin, shipping costs and the time you invest. Calculate each order fully, including fees, postage, packaging and returns. Only then does a larger purchase make sense.
What to do next
- Define your business model and estimate turnover for the current and the previous year.
- Register the trade with your municipality and ask for the fee there.
- Set up the imprint, privacy policy and cancellation notice before the first sale and have them checked.
- Open a separate account and keep bookkeeping running before the first order arrives.
Related reading
- Founding while studying: funding programmes and advice at a glance (in German)
- Self-employed while studying: trade, tax and health insurance (in German)
- Small business rule 2025: new 25,000 euro limit for the previous year (in German)
- Student job 20-hour rule, pension and semester breaks
- Side jobs and tax: what applies to mini jobs, working students and more (in German)
Sources: § 19 UStG, text of the law (retrieved 2 November 2026) | § 14 Gewerbeordnung, notification of a trade | DAK health insurance: self-employed alongside studies (updated 1 October 2026) | Lexware Office help centre: turnover limit for small businesses (25 August 2026)
Last updated: November 2026. This guide is general information, not individual advice.
