Small and medium enterprises in Germany can account for VAT on a cash basis. Where applicable, VAT will only be paid to the tax authorities when collected from the customer. The condition is that the taxable turnover in the previous year does not exceed €500,000. Also certain taxpayers such as self-employed individuals and companies with no bookkeeping obligations can benefit from the cash accounting scheme. A separate application must be filed and the authorities should approve the request before this scheme is implemented.