What the rule actually does
If your turnover stays below the limits, you do not charge VAT on your invoices. In exchange, you cannot deduct input VAT on what you buy. That is the whole trade.
The two limits
There are always two, and both must hold:
| Limit | What it refers to | |
|---|---|---|
| Previous year | 25,000 € | actual total turnover of the last calendar year |
| Current year | 100,000 € | turnover in the running year – exceeding it ends the rule immediately |
The second one is the trap. The 100,000 € is not a forecast: the moment a sale pushes you over, the rule ends with that sale – not at the end of the year. From then on you owe VAT.
Your first year
If you just started, there is no previous year – only the 25,000 € limit applies. And since the rule was rewritten in 2025, the amount is no longer pro-rated if you start mid-year.
What goes on the invoice
- No VAT rate and no VAT amount. Not „0 %“, not „19 % = 0.00 €“. Nothing.
- A note instead, in German: „Gemäß § 19 UStG wird keine Umsatzsteuer berechnet.“
- Everything else from the mandatory field list stays exactly the same.
When giving up the rule is the better deal
You may waive § 19 UStG voluntarily. It pays off when:
- your customers are VAT-registered businesses – for them your gross price is irrelevant;
- you are planning large purchases and want the input VAT back;
- you expect to cross the limit anyway and would rather not switch mid-year.
The waiver binds you for five years. It is not something to try out.
And e-invoicing?
Kleinunternehmer are exempt from having to issue e-invoices. They are not exempt from having to receive them – that applies to every business since 1 January 2025.
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Write an invoice – freeCommon questions
Is Kleinunternehmer the same as being self-employed?
No. It is a VAT status, not a legal form. You can be a Kleinunternehmer as a freelancer, a sole trader or even a small company.
Do I still need a tax number?
Yes. You register with the Finanzamt and receive a Steuernummer regardless. For EU business customers you will also need a USt-IdNr.
Do I have to file VAT returns?
Not the monthly or quarterly advance returns, as long as the rule applies. The tax office may still ask for an annual VAT return.
What if I sell to customers abroad?
The rules change. For services to EU businesses, reverse charge usually applies – and for that you need a USt-IdNr. even as a Kleinunternehmer. Worse: as the recipient of a reverse-charge service you owe the VAT and cannot deduct it.
Legal basis
This page refers to the following German provisions so you can look them up yourself. It is information, not legal advice for your individual case.
- § 14 UStG – issuing invoices and mandatory content (German VAT Act)
- § 19 UStG – small business rule
- Directive 2014/55/EU – European standard EN 16931 for electronic invoicing