Guide
The Kleinunternehmer-Regelung explained
Information only · updated for 2026 · no guarantee
The Kleinunternehmerregelung (§ 19 UStG) lets small businesses skip VAT altogether: you charge no VAT to your clients and file far less paperwork. The catch is that you also give up the right to reclaim the VAT you pay on your own costs. Here is exactly who qualifies and what changes on your invoices.
The income limits (new since 2025)
You can use the scheme if your net turnover was €25,000 or less in the prior calendar year and does not exceed €100,000 in the current year. Both numbers are net (turnover, not profit). If you are just starting out, the €25,000 figure applies to your first-year turnover. These limits replaced the older €22,000 / €50,000 rule at the start of 2025.
What the scheme means in practice
- No VAT on your invoices. You bill net amounts only — no 19 % or 7 % added.
- No input-VAT deduction. You cannot reclaim the Vorsteuer on your purchases, so equipment and software cost you the full gross price.
- Less admin. You are not required to file the monthly or quarterly advance VAT return (Umsatzsteuervoranmeldung), though a simplified annual declaration can still apply.
Because you cannot reclaim input VAT, the scheme suits people with low costs — consultants, writers, coaches — more than businesses that buy a lot of taxable goods. To see how much VAT would otherwise sit inside your prices, use our VAT calculator.
The note your invoices must carry
A Kleinunternehmer invoice looks like a normal one, minus the VAT line. You must add a short statement explaining why no VAT is shown. A common wording is:
„Gemäß § 19 UStG wird keine Umsatzsteuer berechnet.“
(No VAT is charged in accordance with § 19 UStG.)
Do not show a VAT rate or a VAT amount anywhere on the invoice — that would contradict the exemption and can create a liability to pay the VAT you "showed" anyway.
Should you opt in?
You choose on the tax questionnaire when you register, and you can also waive the scheme voluntarily (which then binds you for five years). Whether it pays off depends on your costs, your clients (businesses can reclaim VAT, so they do not care; private customers see a lower price) and your growth plans. This is a classic case to run past a Steuerberater (tax adviser).
Frequently asked
What are the income limits in 2025 and 2026?
Since 2025 the small-business scheme uses net turnover limits of €25,000 in the prior calendar year and €100,000 in the current year. Both are net figures. If you started this year, the €25,000 limit applies to your first-year turnover.
Can I still deduct input VAT as a Kleinunternehmer?
No. The trade-off is symmetric: you charge no VAT on your invoices, and in return you cannot reclaim the input VAT (Vorsteuer) you pay on your own purchases. If you buy a lot of equipment, that can make the regular scheme more attractive.
What note must go on my invoices?
You must state that no VAT is charged because of the small-business rule — for example: "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet." You do not show a VAT rate or a VAT amount.
Legal basis: § 19 UStG (small-business scheme), net limits €25,000 / €100,000 since 1 January 2025. Related tools and reading: VAT calculator · German article Kleinunternehmerregelung.