VAT-exempt sales under § 4 UStG

The VAT act exempts some services whatever your revenue: for example healthcare (§ 4 Nr. 14 UStG), insurance brokerage (§ 4 Nr. 11) or teaching (§ 4 Nr. 21). This is not the small business rule under § 19 UStG. That rule depends on your revenue, and you can waive it at the Finanzamt.

Set your status

Open Account → Account settings → Taxes and choose VAT-exempt sales (§ 4 UStG) as your VAT type. This setting fits when all your sales are exempt.

Income

Norman books your income at 0 % VAT. The booking form shows the rate.

Invoices

Your invoices show no VAT and carry the note "Value added tax-free service according to § 4 UStG."

Expenses

You deduct no input VAT. Enter the VAT rate from the receipt. The gross amount is your expense.

VAT advance return

You file no regular UStVA. If you buy services from abroad under reverse charge, for example Google Ads, you owe the VAT on them yourself (§ 13b UStG). For that month or quarter, Norman shows a UStVA, as set in VAT frequency under Account → Account settings → Taxes. It reports this VAT and your exempt sales in box 48. Read Reverse charge.

Annual VAT return

You still file the annual VAT return. Norman enters your exempt sales and deducts no input VAT.

Profit and loss (EÜR)

In the EÜR, your income counts as VAT-exempt business income and your expenses count at their gross amount.