2025 is a year of transformative updates for self-employed and Kleinunternehmer in Germany. These changes simplify compliance, expand opportunities, and reduce administrative burdens. Here are the top five updates every freelancer and entrepreneur needs to know.

1. Higher revenue limits for Kleinunternehmer 

The Kleinunternehmer regulation offers tax relief by exempting eligible businesses from charging VAT. Starting January 1, 2025, the revenue limits are increasing:

• Previous Year: €22,000 → €25,000.

• Current Year: €50,000 → €100,000 (net).

There are more changes for Kleinunternehmer in 2025. Check the dedicated article to learn more.

2. Mandatory e-invoicing for B2B transactions

From January 1, 2025, receiving e-invoices becomes mandatory for all B2B transactions. While small businesses can continue issuing traditional invoices (PDF or paper) until 2028, it’s best to prepare early.

📄 Use Norman’s free e-invoicing to issue and receive e-invoices without stress.

3. Simplified VAT reporting

VAT compliance is getting simpler for smaller businesses in 2025. If your annual VAT payment is below €9,000 (previously €7,500), you only need to file quarterly instead of monthly VAT returns.

🧮 Automate VAT calculations and filings with Norman. Save time and avoid calculation mistakes.

4. Introduction of the Economic Identification Number (W-IdNr)

To simplify interactions with tax authorities, all businesses will receive a W-IdNr by 2025. This unique identifier will replace multiple existing identifiers, streamlining compliance processes.

5. The document storage period is shortened

The retention period for accounting documents (invoices, cost receipts) is reduced from 10 to 8 years. Hallelujah! 

Summary

2025 brings opportunities to simplify compliance and maximize efficiency. With higher Kleinunternehmer limits, easier VAT reporting, and tools like Norman, staying on top of these changes has never been easier.