Norman

Kleinunternehmerregelung: yes or no?

Take the 2-minute test to find out whether Germany's small-business VAT exemption (§ 19 UStG) is available to you, and whether it actually pays off given your clients and costs. Status: 2026.

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Decision tool

The 2-minute test

Answer 5 short questions to find out whether Germany's small-business VAT exemption (§ 19 UStG) is available to you, and whether it actually pays off. Status: 2026.

Question 1 of 5
Where are you right now?

All questions at a glance

Your situation

Answer 5 short questions about revenue and clients.

  1. Where are you right now?
    • Just founding (no revenue yet)
    • In my first year, already invoicing
    • Self-employed for more than a year
  2. What was your total turnover last year?

    Net, i.e. excluding VAT. Since 2025: prior-year turnover up to €25,000 is the first requirement (§ 19 UStG).

    • There was no last year (founding)
    • Up to €25,000
    • Over €25,000
  3. What turnover do you expect this year?

    In the founding/first year the €25,000 cap applies to your actual turnover. After that, the scheme only ends above €100,000, from the exact transaction that crosses the line.

    • Up to €25,000
    • €25,000–€100,000
    • Over €100,000
  4. Who are your clients, mainly?

    Business clients reclaim VAT as input tax: the VAT on your invoice costs them nothing.

    • Consumers (B2C)
    • Businesses (B2B)
    • Mixed
  5. Are you planning bigger purchases or running high costs?

    As a Kleinunternehmer you cannot reclaim the VAT (Vorsteuer) contained in your expenses.

    • Yes, noticeable investments or costs
    • No, hardly any expenses

All possible results

Yes: the Kleinunternehmerregelung fits you

You stay under the limits (€25,000 prior year / €100,000 current year) and have neither a strong B2B nor an input-VAT argument against it. You invoice without VAT, skip the advance VAT returns (UStVA), and keep bookkeeping minimal.

  • No VAT on your invoices (a § 19 UStG note is enough)
  • No UStVA: fewer deadlines, less bureaucracy
  • Watch the limits: €25,000 (prior year) and €100,000 (current year)
  • You must be able to receive e-invoices; issuing them is not required

Norman tracks your revenue against the limits, so you see how close you are.

You choose the status in the tax registration (Fragebogen zur steuerlichen Erfassung). This test is guidance, not tax advice.

Available, but do the maths on whether it pays off

You qualify, but at least one factor argues against the exemption: B2B clients reclaim VAT anyway, larger purchases mean giving up the input-VAT deduction, and crossing €25,000 this year puts you into regular VAT next year regardless.

  • B2B clients: the VAT you charge effectively costs them nothing
  • Input VAT: as a Kleinunternehmer you get nothing back on investments
  • Over €25,000 this year → regular VAT from next year
  • Note: waiving the exemption voluntarily binds you for 5 years

Tip: decide based on client mix and investments, not convenience.

Norman works both ways: without VAT as a Kleinunternehmer, or with automated UStVA under regular VAT. This test is guidance, not tax advice.

Regular VAT: the exemption is not (or no longer) available

Your turnover is above the § 19 UStG limits (€25,000 prior year or €100,000 in the current year; in the first year the €25,000 applies to actual turnover). That is good news: your business is growing. You charge VAT, get the full input-VAT deduction in return, and the UStVA can be fully automated.

  • Charge VAT (19% / 7%) and file advance VAT returns (UStVA)
  • Full input-VAT deduction on your expenses
  • Crossing €100,000 mid-year switches you from that exact transaction onward
  • Norman prepares and submits the UStVA automatically via ELSTER

Regular VAT mostly means deadlines. Norman handles them automatically.

This test is guidance, not tax advice. The binding classification happens at the Finanzamt.

Kleinunternehmer vs. regular VAT

What actually changes day to day.

Kleinunternehmer (§ 19 UStG)Regular VAT
VAT on invoicesNo: a § 19 UStG note is enoughYes, 19% or 7%
Advance VAT returns (UStVA)NoneMonthly or quarterly
Input-VAT deductionNo: VAT in your expenses is lostYes, in full
Limits€25,000 prior year / €100,000 current year (net)None
Effect with B2B clientsNo price advantage, they reclaim VAT anywayNeutral: clients deduct input VAT
Price advantage with consumersYes: up to 19% cheaper, or more marginNo
SwitchingEnds automatically above the limits; waiving voluntarily binds you for 5 yearsBack only once you meet the limits again
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The six factors that decide it

First the limits, then the economics.

01

€25,000 in the prior year

First requirement (§ 19 UStG, since 2025): your total prior-year turnover must not exceed €25,000 net. Above that, regular VAT applies automatically in the following year.

02

€100,000 in the current year

Second limit: crossing €100,000 net in the current year ends the scheme immediately, from the exact transaction that crosses the line. There is no retroactive switch.

03

Founding year: €25,000 actual

In your first year the €25,000 limit applies to actual turnover: since 2025 there is no annualization to twelve months. Crossing it moves you to regular VAT from that transaction onward.

04

B2B or B2C?

Business clients deduct the VAT you charge as input tax. Without VAT you are not a cent cheaper for them. The exemption's price advantage only works with consumers.

05

Investments & input VAT

Laptop, camera, software, office: as a Kleinunternehmer you cannot reclaim the VAT they contain. With bigger purchases ahead, regular VAT is often worth real money.

06

Waiving binds you for 5 years

You can opt into regular VAT voluntarily (e.g. for the input-VAT deduction), but the decision binds you for at least five calendar years. Do the maths first.

How to decide properly

Three steps from checking to setting it up.

Check the limits

Take the test above: prior year up to €25,000, current year up to €100,000? Only then is the exemption available at all.

Run the numbers on clients and costs

Mostly B2B, or bigger investments planned? Then the exemption often costs you money: despite the lighter bureaucracy.

Set the status and set up Norman

You choose in the tax registration (Fragebogen zur steuerlichen Erfassung), or later with the Finanzamt. Norman invoices correctly with or without VAT and automates the UStVA if you charge VAT.

Unsure? Take the test

In 2 minutes you'll know whether the Kleinunternehmerregelung fits you.

Start the test now

Frequently asked questions