Small business scheme
Kleinunternehmer invoice: small business invoices in Germany
Many freelancers in Germany start under the small business scheme (Kleinunternehmerregelung): no VAT on invoices, no VAT returns. But invoices still have rules – and since 2025 there are new thresholds and simplified requirements. Here is what your invoice needs and which note is mandatory.
Start right away: the Invoice Generator is already set to small business – no VAT, with the required note. Free, no sign-up.
Write a small business invoiceThe short version
- Don’t show any VAT – no rate, no amount.
- Add a note on the tax exemption, e.g. “Für diesen Umsatz gilt die Steuerbefreiung für Kleinunternehmer gemäß § 19 UStG.”
- Include your and your client’s name and address, your tax number, date, quantity and type of service, and the amount.
- An invoice number is no longer mandatory, but strongly recommended.
Who qualifies? Thresholds since 2025
Since 1 January 2025 you can use the small business scheme if your turnover
- was no more than €25,000 in the previous year and
- does not exceed €100,000 in the current year.
Both are net amounts. New since 2025: the very sale that pushes you over €100,000 in the current year is already subject to VAT, so from that invoice on you have to charge VAT. Before 2025 the limits were €22,000 and €50,000.
Small business sales are now formally tax-exempt, which is why the law requires a note on the exemption.
Required details under § 34a UStDV
| Required | No longer required |
|---|---|
| Full name and address of you and your client | Sequential invoice number |
| Tax number, VAT ID or small business ID number | Date of service |
| Date of issue | VAT rate and VAT amount (must not appear) |
| Quantity and type of goods or services | |
| Amount and a note that the small business exemption applies |
Number your invoices anyway: without numbers it’s hard to match payments and send reminders, and many clients’ accounting departments expect one.
No VAT, the right note and a simplified checklist – done in two minutes.
The right note – in German and English
The law doesn’t prescribe exact wording; it must be clear that the small business exemption applies. Common phrasings:
- “Für diesen Umsatz gilt die Steuerbefreiung für Kleinunternehmer gemäß § 19 UStG.”
- “Steuerfreie Kleinunternehmerleistung gemäß § 19 UStG.”
- For English invoices: “This supply is exempt from VAT under the small business scheme (Steuerbefreiung für Kleinunternehmer, § 19 UStG).” Keeping the German term avoids questions from the tax office.
Step by step in the Invoice Generator
- Choose “Small business” above the line items in the Invoice Generator – the link already does this.
- Enter your name, address and tax number. They stay saved in your browser.
- Add the client and line items. Prices are final prices; no VAT is added.
- The checklist knows the simplified small-business rules.
- Download as PDF, print or email it. The exemption note appears automatically.
Costly mistakes – and e-invoicing
- Showing VAT by mistake: if “plus 19% VAT” appears on your invoice, you owe that amount to the tax office (§ 14c UStG). Correct the invoice.
- Watch the threshold: once you exceed €100,000 in the current year, you must charge VAT from that invoice on.
- E-invoices: Kleinunternehmer don’t have to issue e-invoices but must be able to receive them since 2025 – an email inbox is enough. If a client asks for one, the generator also exports ZUGFeRD and XRechnung.
Write your small business invoice
No VAT, with the § 19 UStG exemption note, EPC QR code and PDF – in English or German. Free, no sign-up, your data stays in your browser.
Frequently asked questions
What must be on a Kleinunternehmer invoice?
Your and your client’s name and address, your tax number or VAT ID, the date of issue, quantity and type of service, the amount and a note that the small business exemption applies.
Which sentence do I need on the invoice?
For example “Für diesen Umsatz gilt die Steuerbefreiung für Kleinunternehmer gemäß § 19 UStG.” On English invoices you can translate it, ideally keeping the German term.
Do Kleinunternehmer need invoice numbers?
Since 2025 they are no longer mandatory under § 34a UStDV, but recommended.
What are the Kleinunternehmer thresholds?
Since 2025: at most €25,000 turnover in the previous year and at most €100,000 in the current year, both net.
What if I charge VAT as a Kleinunternehmer?
You owe the VAT shown to the tax office (§ 14c UStG) until you correct the invoice.
Do Kleinunternehmer have to issue e-invoices?
No, they are exempt. They must, however, be able to receive e-invoices since 2025.
Note: This guide reflects German rules as of October 2026 and is not tax advice. For individual cases – cross-border business or borderline small-business situations – ask a tax advisor.
Sources
- § 19 UStG – tax exemption for small businesses (German), gesetze-im-internet.de.
- § 34a UStDV – invoices of small businesses (German), gesetze-im-internet.de.
- BMF letter of 18 March 2025 on the small business scheme (German PDF), Federal Ministry of Finance.