Wholesale for small and side businesses: buying on a small budget

Small business, side business, small business scheme: what is what

These three terms are often mixed up, but they mean different things. In Germany, Kleingewerbe (small trade) is the everyday name for a business that is not entered in the commercial register, usually a sole trader with a modest volume.

A side business (Nebengewerbe) simply means you run it alongside your main occupation, such as a job, studies or parental leave. It is registered in exactly the same way as any other business.

The small business scheme (Kleinunternehmerregelung) is a VAT rule. It decides whether you charge VAT on your own sales, not whether you may buy wholesale. A small trade can use the scheme, but it does not have to.

Is a business registration enough to buy wholesale?

At MDH Distribution it is. When you register, you upload your business registration; an entry in the commercial register is not needed. Whether the business is your main income or a side activity makes no difference.

Enter the company name and owner exactly as they appear on the registration document. That keeps the check quick, usually within 1–2 working days. Our guide to trade accounts and proof of business lists every field in the form.

Retailers based in Germany do not need a VAT ID for an MDH trade account. If you do not have one, just leave the field empty. Businesses in other EU countries sign up with a valid VAT ID instead.

The small business VAT scheme and your purchasing

First, a note: this section explains the principle in general terms and is not tax advice. Whether the scheme makes sense for you is a question for your tax adviser or tax office.

Businesses using the German small business scheme do not show VAT on their own invoices and receipts. This applies up to certain turnover thresholds set out in the VAT Act.

For purchasing, that means the VAT shown on your supplier's invoice usually cannot be reclaimed from the tax office. It becomes a real cost for you. So when you set your selling prices, calculate with the gross amount on the invoice, not the net amount.

MDH invoices always show VAT separately. How you book it depends on your own tax situation.

Small quantities: how much stock you really need

At the start, budgets are tight and space is limited, so the size of the smallest unit matters. At MDH the smallest unit is one case, and there is no minimum order value.

Case sizes vary by item. Stranger Things Toaster Tarts come in cases of nine, Toppie fruit gums 80 g in cases of 16 bags, the Spinner Ball in cases of twelve. Wunder flavoured toothpicks are even available as a single tin of 100.

For a side business it works well to start with a few items that complement each other. One case of spicy chips, one of fruit gums and one of squishies already covers three reasons to buy, without filling up your garage.

Before the first order, make a rough estimate of how many units you can realistically sell per week. A case that empties in two to three weeks is a sensible size for a start. If it is still half full after two months, the item was over-ordered or does not suit your customers.

Little time? Organise ordering and storage

If you sell in the evenings or at weekends, you do not want to reorder constantly. Set fixed order days, for example every two weeks. You pay the €9.99 DHL parcel fee less often and keep a better overview.

If you live or work near Mettmann, you can collect orders from the warehouse free of charge, which fits easily into a commute.

Store food dry, cool and out of direct light, and sell on a first-in, first-out basis. Write the best-before date on the outside of each case so nothing is forgotten at the back of the shelf.

Give every invoice a fixed home, in a folder or a digital archive. In a side business, receipts easily get lost among private paperwork, and by tax return time they are missing.

Typical small business models

Vending machines: one or two machines at a workplace, sports club or student residence are a common way in. Our guide on stocking a snack machine covers what fits the spirals and sells quickly.

Web shop and marketplaces: many people start with a small shop or a marketplace account on the side. Legal and practical points are covered in our guide on wholesale for online sellers.

Markets and events: at flea markets, Christmas markets or school fairs, squishies and eye-catching snacks often sell well because children and teenagers pick them up straight away.

Add-on in an existing business: a hair salon, phone shop or bakery adds a small shelf of trending snacks by the counter. That also runs through a registered business and a trade account.

Opening an MDH trade account as a small business

Have your business registration ready as a PDF or clear photo and fill in the registration form, which takes about 3 minutes. Once approved, you see all prices and can order straight away.

Within Germany we usually deliver in 24–48 hours; other EU countries are supplied with shipping agreed individually. If another retailer referred you, their code gets you €25 off your first order of €200 net or more. Questions are welcome by email at info@mdh-distribution.com or via WhatsApp.