Kleinunternehmer Invoicing
in Germany: Full Guide

Last updated: 25 October 2026

A Kleinunternehmer is a self-employed person in Germany whose revenue was no more than €25,000 in the previous calendar year and does not exceed €100,000 in the current year. These limits have applied since 1 January 2025. Under §19 UStG, they charge no VAT, skip monthly Umsatzsteuervoranmeldungen, and add the disclaimer "Gemäß §19 UStG wird keine Umsatzsteuer berechnet" to every invoice instead.

What is a Kleinunternehmer?

A Kleinunternehmer ("small entrepreneur") is a self-employed person or freelancer exempt from charging VAT under §19 of the German VAT Act (Umsatzsteuergesetz, UStG). The exemption exists to reduce bureaucratic burden on people running small, early-stage, or side businesses: you don't charge VAT, you don't file monthly VAT returns, and you keep your paperwork simple.

You qualify as a Kleinunternehmer if:

• Your revenue in the previous calendar year was no more than €25,000 (net), and
• Your revenue in the current year does not exceed €100,000 (net)

Revenue is counted net and by payments actually received in the year, not by invoices issued. In your first year of self-employment there is no previous year to look at, so the €25,000 limit applies to what you actually earn in that year. Since 2025 it is no longer prorated or projected to a full year: starting in July, your limit for the rest of that year is still €25,000. If you go over it, the exemption ends from that invoice on. Until the end of 2024 the limits were €22,000 and €50,000, so older guides still quote those figures.

How to register as a Kleinunternehmer

There is no separate "Kleinunternehmer registration." It is a box you tick when you first register as self-employed in Germany.

When you submit the Fragebogen zur steuerlichen Erfassung (the tax registration questionnaire) to your local Finanzamt (either on paper or online via Elster), you will be asked whether your expected revenue qualifies you for the Kleinunternehmer exemption. If yes, tick yes.

If you are also required to register a trade (Gewerbe) at the Gewerbeamt, that is a separate step, but the Kleinunternehmer status is still determined by the Finanzamt, not the Gewerbeamt.

Your Finanzamt will issue you a Steuernummer (tax number), which you put on all your invoices. For clients in Germany this is all you need: no VAT ID, no monthly returns.

What goes on a Kleinunternehmer invoice

A Kleinunternehmer invoice looks almost identical to a normal invoice, with two important differences: there is no VAT line, and there must be a §19 UStG disclaimer. Here is the exact text required:

You can place this disclaimer anywhere on the invoice: in the notes section, below the total, or in the footer. It just needs to be present and legible.

For clients in Germany you do not need a Umsatzsteuer-ID (VAT ID); your Steuernummer from the Finanzamt is sufficient. For EU business clients you need one for the reverse charge note, and you can get it from the Bundeszentralamt für Steuern without losing your Kleinunternehmer status. Do not leave a VAT ID field blank or with a placeholder; simply omit it from the invoice.

Kleinunternehmer vs VAT-registered: which are you?

What happens when you approach the revenue limit

Tracking your cumulative revenue through the year is your responsibility. The Finanzamt will not warn you; they will simply expect VAT returns from the following year if you exceeded the limit.

If you exceed €25,000 in a calendar year: You must switch to VAT registration from 1 January of the following year. Notify your Finanzamt in writing before the year ends. From that point, all invoices must include 19% VAT (or 7% where applicable), and you must file monthly or quarterly VAT pre-declarations (Umsatzsteuervoranmeldung).

If you exceed €100,000 in the current year: The switch is immediate, not from January. The invoice that takes you over the limit already has to include VAT, and so does every invoice after it. This is rare but can catch freelancers off guard during a strong year.

Voluntary switch: You can opt into VAT registration at any time, even if you are below the thresholds. This makes sense if you have significant business expenses with VAT (e.g. equipment, software) and want to reclaim input VAT. The downside: once you opt in voluntarily, you must stay VAT-registered for 5 years.

Kleinunternehmer and international clients

Many English-speaking freelancers in Germany work with clients outside Germany. The good news: your Kleinunternehmer status remains intact regardless of where your clients are located.

Non-EU clients (US, UK, Australia, etc.): For business clients, the service is taxed where the client is, so no German VAT applies. The same is true for most freelance services to private clients outside the EU, such as consulting, design, IT or translation. As a Kleinunternehmer you charge no German VAT in any case, so invoice the net amount.

EU business clients: Services to a business in another EU country are taxed in the client's country under reverse charge, and the client accounts for the VAT. Invoice without German VAT, show the client's VAT ID, and add a reverse charge note (“Steuerschuldnerschaft des Leistungsempfängers”). You can get your own VAT ID (USt-IdNr) from the Bundeszentralamt für Steuern as a Kleinunternehmer. It does not end your Kleinunternehmer status, and Kleinunternehmer do not have to file the Zusammenfassende Meldung (§ 18a Abs. 4 UStG). Check the client's VAT ID with the BZSt confirmation service before you invoice.

Note that revenue from international clients counts fully toward your €25,000 threshold. It is not excluded.

Common mistakes

Frequently asked questions