Kleinunternehmerregelung §19 UStG: What Goes on Your Invoice?

This article is for general informational purposes only and does not constitute legal advice. For legal questions about your specific situation, please consult a qualified lawyer or tax advisor.

What Is the Kleinunternehmerregelung?

The Kleinunternehmerregelung (small business regulation) under §19 UStG exempts you from charging VAT. You don't show VAT on your invoices, don't file VAT returns, and don't deal with input tax deductions. The trade-off: you also can't deduct VAT on your own purchases.

You qualify if your revenue was under 25,000 EUR last year and stays below 100,000 EUR this year. Both limits have applied since the 2025 reform and refer to actual revenue, not a projection.

Who Benefits From It?

The small business exemption works well for:

Freelancers and solopreneurs selling mostly to private customers
Side hustlers with modest revenue
New founders who want to keep admin overhead low

If most of your clients are businesses, it might be worth opting out. Business clients can deduct VAT as input tax, so your price is the same to them either way. You'd only be giving up your own input tax deduction.

What Goes on a Kleinunternehmer Invoice?

Your invoice needs all the standard mandatory fields per §14 UStG, plus a few key differences:

Standard mandatory fields

Full name and address of both you and your customer
Tax number (Steuernummer) or VAT ID (USt-IdNr.)
Sequential invoice number
Invoice date
Delivery or service date
Clear description of the service or product
Invoice amount

What's different from regular invoices

No VAT line. You must not show a tax rate or tax amount. If you do, you owe that amount to the tax office (§14c UStG).
Gross amounts only. Since there's no VAT, there's no net/gross distinction. Just state the total.
A §19 UStG reference is mandatory. You must explain on the invoice why no VAT is charged.

The Right Wording for the §19 Reference

There's no legally prescribed phrasing, but it needs to be clear. Common options:

"Gemäß §19 UStG wird keine Umsatzsteuer berechnet." (No VAT charged per §19 UStG.)
"Kein Ausweis von Umsatzsteuer aufgrund der Anwendung der Kleinunternehmerregelung gemäß §19 UStG."
"Als Kleinunternehmer im Sinne von §19 Abs. 1 UStG wird keine Umsatzsteuer berechnet."

The first one is the most common and totally sufficient. Keep it short.

Example: What a Correct Invoice Looks Like

Here are the key fields of a Kleinunternehmer invoice:

Invoice number: 2026-042
Invoice date: 05.03.2026
Service date: February 2026
Service: Logo design and brand guidelines
Amount: 1,200.00 EUR
Note: "Gemäß §19 UStG wird keine Umsatzsteuer berechnet."

No tax rate, no tax amount, no net/gross breakdown. Just the total and the reference.

Common Mistakes on Kleinunternehmer Invoices

These come up all the time:

Showing VAT anyway. Even listing 0% VAT is wrong. Leave out the tax lines entirely.
Forgetting the §19 reference. Without it, your invoice isn't formally correct. Some clients (especially businesses) will ask about it.
Using "net" and "gross" labels. There's no such distinction on Kleinunternehmer invoices. Just write "Amount" or "Total."
Exceeding the revenue limit without noticing. Check your annual revenue regularly. Once you cross the threshold, you must charge VAT immediately.
Listing a USt-IdNr. As a Kleinunternehmer, you typically don't have a VAT ID and don't need one. Use your Steuernummer instead.

When the Exemption Doesn't Make Sense

The Kleinunternehmerregelung isn't always the best choice:

High business expenses. If you spend a lot on equipment, software, or materials, you lose the ability to deduct VAT on those purchases. That can add up.
Mostly B2B clients. Business clients deduct VAT anyway. Your price is the same to them with or without it. You'd only be missing out on input tax deductions.
Rapid growth. If you'll cross the revenue threshold soon, you save yourself the hassle of switching mid-year by charging VAT from the start.

Keep an Eye on Revenue Limits

Since 2025, the thresholds for the Kleinunternehmerregelung are:

Previous year's revenue: max 25,000 EUR
Current year: max 100,000 EUR (actual revenue, not a projection)

The 100,000 EUR threshold is a hard limit: if you cross it during the current year, the exemption ends immediately. The very sale that pushes you over the limit is already subject to regular VAT. Everything before it stays exempt. So keep your numbers up to date.

For cross-border business, there has also been an EU-wide small business scheme since 2025: if you stay below 100,000 EUR in annual revenue across the EU, you can use the exemption in other EU countries after registering with the Federal Central Tax Office (BZSt).

Do Kleinunternehmer Have to Issue E-Invoices?

No. Kleinunternehmer are permanently exempt from the obligation to issue e-invoices. You can keep sending your invoices as PDF or on paper, including to business clients.

You do have to be able to receive them, though: since January 1, 2025, every business in Germany, Kleinunternehmer included, must be able to accept structured e-invoices (such as XRechnung or ZUGFeRD) if a supplier sends one. An email inbox is enough. More on this in the e-invoicing section of our invoicing guide.

Creating Invoices Efficiently as a Kleinunternehmer

An invoicing tool saves you the manual work and prevents mistakes. To see which tools suit Kleinunternehmer, check the invoicing software comparison. The main benefits:

The §19 reference is added to every invoice automatically
No accidental VAT charges possible
Sequential invoice numbers are generated for you
Your invoices look professional, no accountant needed