The Kleinunternehmerregelung (small-business regulation) is a German VAT relief under Section 19 of the Umsatzsteuergesetz (UStG). Qualifying businesses charge no VAT (Umsatzsteuer) on their invoices and skip most VAT filing obligations, in exchange for giving up the right to reclaim input VAT on their own purchases.
From 1 January 2025 the turnover limits rose and switched to net figures: you qualify if prior-year turnover stayed at or below EUR 25,000 and current-year turnover does not exceed EUR 100,000. The EUR 100,000 ceiling is a hard cutoff, so the invoice that breaks it must itself carry VAT.
Example: A Berlin freelance designer earned EUR 22,000 in 2024. In 2025 she stays a Kleinunternehmer, invoices a client EUR 1,000 with no VAT (versus EUR 1,190 including 19% VAT), and notes "Gemaess Paragraf 19 UStG wird keine Umsatzsteuer berechnet." She cannot reclaim the VAT on her new EUR 2,000 laptop.
Estimate your net income under this scheme with the Germany Freiberufler tax calculator. Compare cross-border rules via the VAT registration threshold and the concept of reverse charge VAT for EU clients.