What is Kleinunternehmer?
The Kleinunternehmerregelung under § 19 UStG lets you skip charging VAT on invoices if your annual turnover stays within statutory limits. You do not show VAT and generally cannot reclaim input VAT.
From 2025, net thresholds apply: in the founding year up to €25,000; from year two, prior-year turnover up to €25,000 and current year up to €100,000 (hard cut-off). Invoices carry a note referring to the small-business rule.
Pros and cons
- Pro: simpler invoices without VAT lines, less UStVA work
- Con: no input VAT on investments (laptop, software)
- Con: B2B buyers who reclaim VAT often prefer regular invoices
Kleinunternehmer and e-invoices
The rule concerns VAT — not legal form. Small businesses are usually exempt from the statutory e-invoice issuing duty (§ 34a UStDV) but must be able to receive e-invoices from 2025. Clients may still request structured invoices.
General information only — not legal or tax advice. Tax and e-invoice rules can change; the applicable laws control (e.g. § 19 UStG, § 14 UStG). Confirm with a tax advisor or lawyer if unsure.