Anyone who has registered or has to register their self-employment as a business or generates income from commercial activities, independent work or agriculture and forestry within the meaning of German income tax law is considered to be operating commercially under the Verpackungsgesetz (Packaging Act). 

This includes individuals who claim tax losses from their activities or calculate profit from agriculture and forestry based on average rates (section 13a (6) EStG (Income Tax Act) (see below). 

If the goal of an activity is to generate a profit or if income is actually generated, the activity is considered a commercial activity under the Verpackungsgesetz. However, an activity that is not gainful can still be considered commercial if it is connected to an economic activity. For example, distributing promotional items free of charge as part of an economic activity is considered commercial. 

In borderline cases, especially when it comes to economic activities on the market or planned practice and long-term focus, the objective standards of German income tax law may be applied. Activities that are considered pastimes or hobbies from a tax perspective, and that must not or do not have to be recognised in tax returns, are non-commercial within the meaning of the Verpackungsgesetz. However, anyone claiming or wanting to claim losses against taxes from their activity is always considered to be acting commercially under the Verpackungsgesetz.

Even small and micro businesses have packaging law obligations to fulfil if they act commercially. The quick start guide I want to know if I have obligations and how to fulfil them can help you learn more.