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VAT Exemption

Kleinunternehmer VAT Threshold Checker

Check if you qualify for the Kleinunternehmer VAT exemption (§19 UStG) under the rules in force since 2025.

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Net amounts your clients have actually paid you this calendar year, not what you have invoiced (§19 UStG counts vereinnahmte Entgelte)

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Used only to warn you ahead of time. Your estimate never changes the status of turnover you have already received

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Your full previous calendar year. Above €25,000 here and the exemption is gone for the whole of this year

Check your VAT exemption status

Enter your net turnover figures to see if you qualify for the Kleinunternehmer VAT exemption under §19 UStG.

What a Kleinunternehmer invoice must contain

As a Kleinunternehmer you may issue a simplified invoice: it only needs the items listed in §34a UStDV, which is a shorter list than a normal §14 UStG invoice. Below is a filled-out example you can copy the structure of; the small numbered marks match the six required items explained underneath it.

Alex Fischer1

Webdesign & Beratung

Beispielstraße 12, 10115 Berlin

RECHNUNG

Rechnungsnr. 2026-014

Rechnungsdatum: 15.07.20263

Steuernummer: 30/123/456782

Rechnung an

Muster GmbH1

Musterweg 4, 20095 Hamburg

Leistung4

BeschreibungMengeBetrag
Webdesign, Juli 202612 Std.960,00 €
Gesamtbetrag960,00 €5

Steuerfreier Kleinunternehmer gemäß §19 UStG – kein Ausweis von Umsatzsteuer.6

Fictional details, for illustration only.

1Your name and address, and your customer’sBoth in full: §34a Satz 1 Nr. 1 UStDV
2Your Steuernummer or your USt-IdNrEither one is enough. You do not need a VAT ID: §34a Satz 1 Nr. 2 UStDV
3The date of issue§34a Satz 1 Nr. 3 UStDV
4Quantity and type of goods, or scope and type of the service§34a Satz 1 Nr. 4 UStDV
5The amount, as one figure, with no VAT lineNo net / VAT / gross split, because no VAT is charged
6A reference to the §19 UStG exemption§34a Satz 1 Nr. 5 UStDV

No USt-IdNr needed. Your Steuernummer satisfies §34a Satz 1 Nr. 2 UStDV. A USt-IdNr only becomes relevant for cross-border EU B2B work.

Never show a VAT amount. If you do, you owe it under §14c Abs. 1 UStG even though your turnover is exempt. Invoicing software left on 19% is the usual cause, and the invoice has to be corrected to undo it.

E-invoicing. Kleinunternehmer are exempt from having to issue e-invoices and may always send an ordinary one (UStAE 14.7a Abs. 3), but you must be able to receive them.

The exact wording is flexible: UStAE Abschnitt 14.7a Abs. 1 Satz 4 accepts everyday phrasing such as "steuerfreier Kleinunternehmer", as long as it unambiguously identifies the exemption. The older sentence "Gemäß §19 UStG wird keine Umsatzsteuer berechnet." is still fine too.

What is the Kleinunternehmerregelung and how does it work?

The Kleinunternehmerregelung (small business regulation) is defined in §19 UStG (Umsatzsteuergesetz, the German VAT Act). It allows freelancers and small business owners to be exempt from charging VAT (Umsatzsteuer) on their invoices, significantly simplifying their accounting and making their services more price-competitive for private clients.

The rules changed on 1 January 2025. §19 UStG was rewritten by Article 25 of the Jahressteuergesetz 2024 (BGBl. 2024 I Nr. 387), and the tax administration set out how it is applied in the BMF-Schreiben of 18 March 2025 (GZ III C 3 - S 7360/00027/044/105). Everything on this page follows that circular and the current text of §19 UStG. If a guide you are reading still says €22,000 and €50,000, it predates the reform.

To qualify as a Kleinunternehmer, you must meet two thresholds:

  • Your net turnover received last year must have been ≤€25,000
  • Your net turnover received this year must stay ≤€100,000: a running limit on actual turnover, not a forecast you make in January

Both figures are net and are measured on vereinnahmte Entgelte: money that has actually reached you in the calendar year, not invoices you have issued. Sales of business fixed assets (Anlagevermögen) do not count toward the total, and neither does turnover on which somebody else owes the tax. It is turnover, not profit: you do not subtract your expenses first.

If you qualify, you don't charge 19% VAT (or 7% for certain services) on your invoices. Instead, every invoice must point to the exemption, for example: "Steuerfreier Kleinunternehmer gemäß §19 UStG – kein Ausweis von Umsatzsteuer." The exact wording is flexible.

Crossing €100,000 ends the exemption on the spot. The transaction with which you cross the limit is itself fully taxable at the normal rate, not the next invoice, not the next month, not the next calendar year. From that moment the ordinary filing duties apply: you notify your Finanzamt and file the Umsatzsteuer-Voranmeldung monthly or quarterly as your Finanzamt assigns (§18 Abs. 2 UStG). Your existing Steuernummer is what identifies you on domestic invoices; a USt-IdNr is a separate number you only need for cross-border EU business.

A breached previous year is absolute. If last year finished above €25,000, none of this year's turnover is exempt, however little you invoice this year. A quiet year does not rescue a breached one; it only restores your eligibility for the year after.

In your first year, a flat €25,000 applies to your actual turnover. Since 2025 this is no longer pro-rated by the month you started, so it makes no difference whether you registered in January or November. Note that €25,000, not €100,000, is the limit that governs the founding year.

The main disadvantage is that you cannot reclaim input VAT (Vorsteuer) on your business purchases. If you buy expensive equipment or services with VAT, you absorb that cost. For businesses with high expenses, it may be worth voluntarily opting into the regular VAT system (Regelbesteuerung), but that waiver binds you for at least five calendar years before you can switch back.

One trap worth knowing: being a Kleinunternehmer does not protect you from the reverse-charge rules. If you buy advertising from Google Ireland or Meta Ireland, or software from another EU supplier, you become liable for German VAT on that purchase under §13b UStG: you cannot deduct it, and you must file for it even though §19 otherwise frees you from VAT returns.

Remember: Kleinunternehmer status only affects VAT. You still pay income tax (Einkommensteuer) on your profits like everyone else.

Frequently asked questions

What is the Kleinunternehmerregelung?
The Kleinunternehmerregelung (§19 UStG) is a VAT exemption for small businesses in Germany. If you qualify, you don't charge VAT (Umsatzsteuer) on your invoices. Since 1 January 2025 the limits are: net turnover of no more than €25,000 in the previous calendar year, and no more than €100,000 in the current one. Both are measured on money actually received (vereinnahmte Entgelte), not on invoices issued. Every invoice must carry a note pointing to the exemption, for example "Steuerfreier Kleinunternehmer gemäß §19 UStG – kein Ausweis von Umsatzsteuer."
Does the threshold apply to gross or net revenue?
Net. This changed in 2025. Kleinunternehmer turnover is now formally tax-exempt (steuerfrei) rather than merely "not levied", so the old wording that added notional VAT on top of the limit is gone from §19 Abs. 1 UStG: the Gesamtumsatz is measured on the Bemessungsgrundlage, i.e. the net amount. Three further details catch people out: it is measured on payments actually received in the calendar year, not invoices issued; sales of business fixed assets (Anlagevermögen) are excluded; and it is turnover, not profit, so you do not deduct your expenses first.
What happens if I exceed the threshold mid-year?
You lose the exemption immediately, and the transaction that takes you over €100,000 is itself fully taxable at the normal rate. There is no grace period, no "from the next invoice", and no deferral to the next calendar year. The BMF's own example: with €80,000 received so far, a new customer paying €40,000 pushes you over, and that entire €40,000 is subject to regular VAT. From that moment the normal filing duties apply. You notify your Finanzamt; your existing Steuernummer is what identifies you on domestic invoices, and a USt-IdNr is a separate thing you only need for cross-border EU work.
What if I was above €25,000 last year but will earn very little this year?
You are still outside the exemption for the whole of this year. The previous-year test is absolute: if your Gesamtumsatz exceeded €25,000 last year, none of this year's turnover is exempt, however little you invoice (UStAE Abschnitt 19.1 Abs. 2 Satz 2). A quiet year does not rescue a breached previous year; it only restores your eligibility for the year after, provided you finish this year at or below €25,000.
Is the limit pro-rated in my first year of self-employment?
No, not any more. Until 2024 the founding-year limit was reduced in proportion to the months you had been in business. That pro-rating was abolished for turnover after 31 December 2024. In the year you start, a flat €25,000 applies to your actual turnover, whether you began in January or in November. Note also that €25,000, not €100,000, is the limit that governs your first year (UStAE Abschnitt 19.1 Abs. 3).
Is Kleinunternehmer the same as Einzelunternehmer?
No, and they are not even the same kind of thing: this is probably the most common mix-up. Einzelunternehmen is a legal form: a sole trader, as opposed to a GbR, UG or GmbH. Kleinunternehmer is a VAT status under §19 UStG. The two are independent: a GbR or even a UG can be a Kleinunternehmer if its turnover is small enough, and plenty of Einzelunternehmer are on regular VAT (Regelbesteuerung) either because they exceed the limits or because they opted in. Neither term implies the other.
Do I need a USt-IdNr for EU B2B work as a Kleinunternehmer?
Not for domestic invoices: your Steuernummer alone satisfies §34a UStDV. But for cross-border EU B2B you do need one, free of charge from the Bundeszentralamt für Steuern: both to receive services from EU businesses under the reverse-charge rules and for your own B2B services to customers in other member states, which also brings a Zusammenfassende Meldung obligation. Requesting a USt-IdNr does not cost you your Kleinunternehmer status and does not make your own domestic turnover taxable.
Do I owe VAT on Google or Meta ads as a Kleinunternehmer?
Yes, and this catches a lot of freelancers. §19 has no effect on tax you owe as the recipient of a service under §13b Abs. 5 UStG (UStAE Abschnitt 19.1 Abs. 1 Satz 3). Buying ads from Google Ireland or Meta Ireland, or software subscriptions from other EU suppliers, makes you the person liable for German VAT on that purchase under the reverse-charge procedure, and because you are a Kleinunternehmer you cannot deduct it as input VAT. You also have to file for it: the relief from VAT returns in §18 Abs. 1 to 4 UStG expressly does not extend to these cases.
Does my EU-wide turnover count toward the €100,000 German limit?
No, and this is a widespread misunderstanding. There are two separate €100,000 figures. The §19 Abs. 1 limit counts only your domestic (inländisch) Gesamtumsatz as defined in §19 Abs. 2 UStG. The EU-wide €100,000 "Jahresumsatz im Gemeinschaftsgebiet" is a different threshold, belonging to §19a UStG: the BZSt special reporting procedure and the KU-IdNr with the "EX" suffix, which a German business uses to claim another member state's small-business exemption (and, in §19 Abs. 4, which an EU-resident business uses to claim the German one). Exceeding the EU-wide limit deactivates that KU-IdNr but leaves your domestic §19 exemption untouched (UStAE Abschnitt 19a.4 Abs. 3).
Can I choose to charge VAT even if I qualify as Kleinunternehmer?
Yes. You can waive the exemption (Verzicht, §19 Abs. 3 UStG) and be taxed normally, which lets you reclaim input VAT on business purchases, useful if you have significant expenses or mostly business clients who can deduct the VAT anyway. Two catches: the declaration binds you for at least five calendar years and cannot be revoked within them, and it can be made up to the end of February of the second calendar year following the tax period concerned.
Can I reclaim VAT on my business purchases as a Kleinunternehmer?
No. This is the main disadvantage. You cannot deduct input VAT (Vorsteuer) on business purchases like equipment, software or services. It is worse than it first looks in one specific case: where you owe German VAT as the recipient under the reverse-charge rules (EU ad spend, for example), you pay that VAT and still cannot deduct it. If you have significant expenses, opting into the regular VAT system may be worth the paperwork.

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