Kleinunternehmer VAT Threshold Checker
Check if you qualify for the Kleinunternehmer VAT exemption (§19 UStG) based on your revenue.
Enter your total gross revenue for the current calendar year to date
Your best estimate for the full calendar year, used to check next year's eligibility
Enter 0 if this is your first year of self-employment
Check your VAT exemption status
Enter your revenue figures to see if you qualify for the Kleinunternehmer VAT exemption under §19 UStG.
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.
To qualify as a Kleinunternehmer, you must meet two thresholds:
- Your actual revenue last year must have been ≤€22,000
- Your projected revenue this year must be ≤€50,000
If you qualify, you don't charge 19% VAT (or 7% for certain services) on your invoices. Instead, you must add the following note to every invoice: "Gemäß §19 UStG wird keine Umsatzsteuer berechnet."
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).
If you choose to opt into VAT voluntarily, you're locked in for 5 years before you can switch back to Kleinunternehmer status.
Important:If you exceed the €50,000 threshold mid-year, you must start charging VAT immediately, from the invoice that crosses the threshold, not from the next invoice or calendar year. You'll need to register with your Finanzamt, obtain a USt-IdNr (VAT ID), and begin filing quarterly Umsatzsteuer-Voranmeldung via ELSTER.
Remember: Kleinunternehmer status only affects VAT. You still pay income tax (Einkommensteuer) on your profits like everyone else.