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Kleinunternehmer (§ 19): what freelancers and expats need to know
Kleinunternehmerregelung lets small businesses invoice without charging German VAT — with turnover limits and invoice wording you must get right. It also affects how the e-invoice issuing mandate applies to you.
What Kleinunternehmerregelung is
Under § 19 UStG, small entrepreneurs can opt out of charging (and reclaiming) German VAT if their turnover stays below statutory limits. Thresholds have been updated in recent years — always verify the current figures for your tax year with a Steuerberater or the Kleinunternehmer checker.
You still run a real business: you issue invoices, keep records, and may file income tax (ESt) and an Einnahmen-Überschuss-Rechnung (EÜR) depending on your situation.
How to write invoices as Kleinunternehmer
- Show amounts without VAT (no 19% / 7% lines)
- Add a clear note that VAT is not charged due to § 19 UStG (Kleinunternehmerregelung)
- Still include addresses, invoice number, date, description, and tax ID — see invoice requirements
How this interacts with e-invoices
Kleinunternehmer are generally exempt from the obligation to issue structured e-invoices under the German B2B mandate — but you still need to receive e-invoices from suppliers from 2025. Large clients may still ask you to send ZUGFeRD/XRechnung voluntarily.
Details: e-invoice mandate · receiving e-invoices.
When leaving § 19 makes sense
- You are approaching the turnover limits
- You have significant input VAT (Vorsteuer) you want to reclaim
- B2B clients prefer standard VAT invoices for their own accounting
German version: Kleinunternehmerregelung Guide →
Hinweis: Dieser Inhalt dient der Orientierung und ersetzt keine Rechts- oder Steuerberatung. Steuer- und E-Rechnungsregeln können sich ändern — maßgeblich sind die jeweils geltenden Gesetze (z. B. § 19 UStG, § 14 UStG). Im Einzelfall Steuerberater oder Fachanwalt konsultieren.