The GWG Threshold determines whether you can depreciate an asset immediately or must spread the depreciation over several years. However, there isn’t just one threshold—there are several value tiers. This article explains all GWG value thresholds (as of 2026) in an easy-to-understand way—with examples and the difference between net and gross.
| Net Value | Possibility | Depreciation |
|---|---|---|
| up to 250 € | Immediate Expenses | in full in the year of acquisition |
| €250.01 – €800 | Immediate Depreciation of Low-Value Assets | in full in the year of acquisition |
| €250.01 – €1,000 | Grouped Items (Pool) | on a straight-line basis over 5 years |
| over 800 € / over 1,000 € | regular investment | Depreciation over the useful life |
You can record business assets with a net value of up to €250 directly as business expenses without listing them in a separate register. That is the simplest case.
This category includes the classic low-value asset (GWG). You write off the entire value of the asset in the year of purchase. However, if the value exceeds €250, you must record it in a current inventory.
As an alternative to immediate depreciation, you can depreciate assets valued between €250.01 and €1,000 in a Lot aggregate them and depreciate them evenly over five years (pool depreciation pursuant to Section 6(2a) of the Income Tax Act (EStG)). This election applies uniformly to all assets in this value class for a given year.
For the GWG threshold, the Net amount (excluding sales tax) if you are eligible to claim input tax credits. If you are not—for example, as a small business owner—the gross amount applies. A device costing €800 net (€952 gross) thus remains a low-value item.
If you make a lot of purchases, it's easy to lose track of which items fall into which value category and when the reporting requirement takes effect.
With a digital inventory and asset management system such as Inventory ONE Record each asset using Inventory number, acquisition cost, location, and useful life – by scanning a barcode or QR code. Here's how to List of Low-Value Assets and Fixed Assets Automatically and always exam-proof. Learn more on our pages about Inventory Management Software and to the Inventory system.
The limit for immediate write-offs is €800 net. For the miscellaneous item, the upper limit is €1,000 net.
Net, if you are eligible for input tax credits. Otherwise, the gross amount applies.
They are depreciated on a regular basis over their normal useful life (AfA)—unless they are included in a collective item if their value is 1,000 € or less.
For amounts exceeding 250 € net, there is a requirement to record them in a current register.
This article is intended for general informational purposes only and is not a substitute for tax advice. The value limits mentioned are current as of 2026; the applicable tax regulations at the time are authoritative. Please consult your tax advisor regarding your specific situation.
This post is part of our series on low-value assets and the recording of fixed assets:
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