# Kleinunternehmer rule in Germany: limits, invoices

As a Kleinunternehmer you charge no VAT on your invoices and usually file no VAT returns during the year. Since 1 January 2025, § 19 UStG makes your sales VAT exempt, where before the tax was simply not collected. The price is that you cannot reclaim the VAT you pay on purchases. Through the BZSt you can now also use the exemption in other EU countries.

## Who

The rule covers businesses based in Germany whose total turnover stayed within 25,000 € last year and stays within 100,000 € this year. In your first year of trading, the finance ministry applies the 25,000 € limit, not the 100,000 € one. It applies automatically unless you opt out in writing.

## Dates

- 2025-01-01: The reformed § 19 UStG applies: your sales are VAT exempt if last year's turnover stayed within 25,000 € and this year's stays within 100,000 €.
- 2025-01-01: The EU-wide scheme starts: through the BZSt you can use the small-business exemption in other EU countries, up to 100,000 € EU turnover a year.
- 2025-03-18: The finance ministry publishes its guidance on the new rules, including the invoice note and what happens on crossing 100,000 €.

## Tools

- Lexware Office: yes. Tick Kleinunternehmer in the settings and invoices drop VAT and carry an editable § 19 note. (https://help.lexware.de/de-form/articles/548278-kleinunternehmerregelung, 2026-10-05)
- sevDesk: yes. Recognises your Kleinunternehmer status and writes invoices without VAT, with the § 19 note already in place. (https://sevdesk.de/ratgeber/buchhaltung-finanzen/kleinunternehmer/kleinunternehmer-rechnung/, 2026-10-05)
- Accountable: yes. Adds the § 19 exemption line to your invoices on its own; its help page says nothing about watching the limits. (https://www.accountable.de/help-center/wie-stelle-ich-rechnungen-als-kleinunternehmerin/, 2026-10-05)
- FastBill: yes. Set yourself as Kleinunternehmer once and every invoice goes out without VAT and with the exemption note. (https://www.fastbill.com/rechnungsprogramm-kleinunternehmer, 2026-10-05)
- Qonto: yes. The invoicing in your business account writes invoices without VAT and with a § 19 note; you check the limits yourself. (https://qonto.com/de/invoicing/rechnungsprogramm-kleinunternehmer, 2026-10-05)
- easybill: yes. Has a setting for businesses without VAT, so every template shows net prices with no VAT line. (https://www.easybill.de/branchen/rechnungsprogramm-kleinunternehmer/, 2026-10-07)
- Papierkram: yes. You switch on the Kleinunternehmer rule in the settings, on every plan. (https://www.papierkram.de/preise/, 2026-10-07)
- Invoice Ninja: partial. No Kleinunternehmer setting: you mark clients as tax exempt and add the § 19 line to the invoice text by hand. (https://invoiceninja.github.io/docs/user-guide/taxes, 2026-10-05)

## Questions

### What happens if I go over 25,000 €?

If your turnover in one year passes 25,000 €, you lose the exemption for the following year and charge VAT from 1 January. The finance ministry says this holds even if you stay under 25,000 € in the new year. The 100,000 € limit for the current year is stricter: the very sale that crosses it is fully taxable. From that moment you write invoices with VAT and file monthly or quarterly returns. In your first year of trading, that switch happens at 25,000 €.

### What must my invoice say as a Kleinunternehmer?

You may issue a simplified invoice under § 34a UStDV, with no tax amount and no tax rate. It must state that the small-business exemption applies to your sale. The finance ministry accepts plain wording such as „steuerfreier Kleinunternehmer“, as long as it is clear. Invoices up to 250 € need the note too. If you show VAT anyway, you owe that amount to the tax office.

### Do I have to receive e-invoices as a Kleinunternehmer?

Yes. You are exempt from issuing e-invoices, but the finance ministry says you must be able to receive them from other businesses. Your own invoices can stay PDF or paper. You may still send an e-invoice if your customer agrees, and an informal agreement is enough. Your software then has to mark the exemption correctly in the XML.

### Is it worth opting out of the Kleinunternehmer rule?

Opting out lets you reclaim VAT on purchases such as a new laptop or a car, and business customers see you as a regular VAT payer. In return you add VAT to your prices and file returns, which private customers feel. You tell the tax office by the end of February of the second year after the year in question. The choice binds you for at least five calendar years, and you can only return at the start of a year. Work through the next five years with your Steuerberater, not just this one.

### How does the EU small-business scheme work?

Since 2025 you can use other EU countries' small-business exemptions for your sales there. You apply online with the Bundeszentralamt für Steuern, which passes the request to the countries you choose. Your EU-wide turnover must stay within 100,000 € last year and this year, plus each country's own limit. You get an identification number ending in EX and report your sales every quarter. If you pass 100,000 €, you report it within 15 working days and your participation ends.

## Sources

- [§ 19 UStG (Steuerbefreiung für Kleinunternehmer)](https://www.gesetze-im-internet.de/ustg_1980/__19.html)
- [BMF-Schreiben vom 18. März 2025: Sonderregelung für Kleinunternehmer](https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Umsatzsteuer/Umsatzsteuer-Anwendungserlass/2025-03-18-sonderregelung-kleinunternehmer.pdf?__blob=publicationFile&v=3)
- [Bundesfinanzministerium: Fragen und Antworten zur E-Rechnung](https://www.bundesfinanzministerium.de/Content/DE/FAQ/e-rechnung.html)
- [BZSt: Europäische Kleinunternehmerregelung (EU-KU-Regelung)](https://www.bzst.de/DE/Unternehmen/Umsatzsteuer/EU-KU-Regelung/eu_ku_regelung_node.html)