Low-Value Assets (LVA): Definition, Limits, and Depreciation

Low-Value Assets (LVA) can be fully and immediately written off for tax purposes in the year of purchase—rather than spread out over many years. This saves time and effort and provides an earlier tax benefit. This article explains what low-value assets are, what requirements and value limits apply, and how to properly write them off and record them.

Key Points at a Glance

• Low-value assets are depreciable, movable, and independently usable assets with low acquisition costs.
• The legal basis is Section 6(2) of the Income Tax Act (EStG).
• Until 800 € net GWG may be capitalized in the year of acquisition written off immediately will be.
• Alternatively, for goods priced between €250.01 and €1,000, a Lot (Pooled depreciation over 5 years) is possible.
• For orders over 250 €, there is a Record-keeping requirement in the current directory.

What are low-value assets?

A low-value asset is a fixed asset whose acquisition or production cost does not exceed a certain threshold. The advantage: Instead of depreciating the asset over its useful life, it may be deducted in full immediately as a business expense. Typical examples include office chairs, tools, smartphones, and small machines.

Requirements: When is something considered a GWG?

For an asset to be classified as a low-value asset, three conditions must be met:

1. Wear-resistant and flexible: It is subject to wear and tear and is not permanently attached to the building.
2. Can be used independently: It can be used on its own—for example, a printer without a PC is not considered to be capable of standing-alone use.
3. Value limit met: The net acquisition cost is below the applicable threshold.

An Overview of the GWG Value Thresholds

Several value thresholds are decisive for tax treatment:

For details on the individual limits, see our article on the GWG limit.

How are low-value assets depreciated?

At GWG, you can choose between two methods:

• Immediate write-off: Assets with a net value of up to €800 are fully depreciated in the year of acquisition.
• Aggregate Items (Pool Depreciation): Assets valued between €250.01 and €1,000 are grouped into a single annual aggregate item and depreciated uniformly over five years—regardless of whether an asset is disposed of earlier.

Important: The method must be applied to all goods in a given marketing year uniform be elected.

Record-Keeping Requirements and GWG Registry

For low-value assets with an acquisition cost exceeding €250, there is a Record-keeping requirement: They must be recorded in a current inventory list that includes the acquisition date and cost—unless this information is already included in the accounting records. You can read about how such an inventory list is structured in our article on the fixed asset inventory.

Digitally Record Low-Value Assets and Equipment

In practice, low-value assets are often overlooked because they fall off the radar after being written off immediately—even though they are still physically present in the company and must be recorded.

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 and to the Inventory system.

Frequently Asked Questions About GWG (FAQ)

What is a low-value asset?

A depreciable, movable, and independently usable fixed asset whose net acquisition cost is below the low-value asset threshold and which may therefore be depreciated immediately.

Up to what amount does a GWG apply?

Immediate depreciation is possible for amounts up to 800 € net. For the collective item, the limit is 1,000 € net.

Do GWGs have to be entered into a directory?

Yes, there is a record-keeping requirement for low-value gifts (GWG) exceeding €250 net, unless the information is already evident from the accounting records.

What is the difference between GWG and miscellaneous items?

Under the GWG, assets are depreciated immediately; under the collective item method, assets ranging from €250.01 to €1,000 are grouped together and depreciated over five years.

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.

More Articles on Low-Value Assets & Fixed Assets

This post is part of our series on low-value assets and the recording of fixed assets:

• Low-Value Assets (LVA) – Basics (this article)
• 2026 Low-Value Goods Threshold – All Value Thresholds
• List of Attachments – Structure & Required Information