Tax Amendment Act | Relief for clubs from 2026 onwards
Taxes
Mehr Geld, weniger Bürokratie: Das Jahressteuergesetz 2025 bringt spürbare Verbesserungen für Ehrenamt und Vereine.
The main changes coming into effect on 1 January 2026:
- The flat-rate allowance for volunteers rises from 840 to 960 euros a year
- The flat-rate allowance for trainers rises from 3,000 to 3,300 euros per year
- Liability exemption for volunteers rises from 840 to 3,300 euros (What does this mean?)
- Commuter allowance rises from 30 to 38 cents per km and also applies to voluntary work
- Significant increase in the exemption threshold for the obligation to use funds promptly (What is this?) from 45,000 to 100,000 euros
- Increase in the exemption threshold for income from commercial business operations from 45,000 to 50,000 euros (What does this mean?)
- VAT in the catering sector is reduced from 19 to 7 per cent for food, but not for drinks
- The requirement to classify activities by sector no longer applies to associations with income of up to 50,000 euros (What does this mean?)
- A photovoltaic system does not jeopardise non-profit status, provided it is not the organisation’s primary purpose
- E-sports is recognised as a charitable activity
Significant improvements for volunteers and charitable organisations
Charitable organisations will see a noticeable reduction in their tax burden as a result of the amendments to the Annual Tax Act 2025. The improvements to flat-rate allowances (see above: ‘volunteer, coach and commuter allowances’) and to the exemption from liability in cases of slight negligence (see above: ‘liability privilege’) improve the framework conditions for social engagement.
Efforts to reduce red tape are also being addressed through the raising of various exemption thresholds and the removal of the requirement for small clubs to classify their activities by sector. This significantly reduces the accounting burden, though it is essential to maintain transparent and structured bookkeeping.
Increased flat-rate allowances
People who volunteer deserve recognition. The increase in the annual flat-rate allowance for voluntary work from 840 to 960 euros and the flat-rate allowance for sports instructors from 3,000 to 3,300 euros provides greater flexibility in this regard. The commuter allowance rises from 30 to 38 cents per kilometre and also applies to voluntary work.
Limited liability
The liability privilege protects volunteers from personal liability in cases of slight negligence. The club is liable and must take out appropriate insurance. Previously, this privilege applied provided that the expense allowance did not exceed 840 euros per year. In future, the privilege will also apply to an expense allowance of 3,300 euros per year.
Increase in exemption thresholds
The exemption threshold for the obligation to use funds promptly is being more than doubled, from 45,000 to 100,000 euros. This means that the obligation to use funds promptly no longer applies to any charitable organisations whose total income is below 100,000 euros. This makes it easier for small and medium-sized associations to build up reserves.
The exemption threshold for income from commercial operations is rising from 45,000 to 50,000 euros. This means that smaller commercial operations with revenue (including VAT) of up to 50,000 euros per year are exempt from corporation tax and trade tax.
The requirement to allocate individual activities in detail to specific tax categories no longer applies to organisations with revenue of up to 50,000 euros – a significant relief for smaller associations. Accounting separation remains important. It is generally recommended that organisations maintain a proper and transparent allocation of activities.
Further changes
VAT in the hospitality sector is reduced from 19 to 7 per cent for food, but not for drinks
Charitable organisations may now use photovoltaic and other systems for generating renewable energy without this jeopardising their charitable status. The operation of these systems must not be the organisation’s primary purpose, but rather a supplementary means of sustainable energy generation.
From 2026, e-sports will be officially recognised as a charitable purpose and included in the list set out in Section 52(2) of the German Fiscal Code (AO). You now have the option of including e-sports programmes and clubs in your articles of association. This is subject to compliance with all youth protection regulations.
The Tax Amendment Act 2025 for further reading
Federal Law Gazette, accessed on 22 February 2026
Good summaries of the changes:
The Paritätische Gesamtverband:
Tax Amendment Act 2025, article dated 18 February 2026
Benedetto – German Voluntary Sector Magazine
What’s changing for associations, article dated 12 January 2026
Haus des Stiftens: