Use case · § 19 UStG

Writing an invoice as a small business (Kleinunternehmer)

Without VAT, but with the correct note: this is how, as a small business (Kleinunternehmer), you write legally sound invoices, adapted to the new thresholds of €25,000 and €100,000 since 2025.

Create a small-business invoice Mehr erfahren

Template for § 19 invoices

Automatic note text, no VAT calculation, finished PDF. You don't have to configure anything, the small-business mode is predefined in the generator.

Create a small-business invoice

What is the small-business scheme in 2026?

The small-business scheme under § 19 UStG lets you invoice without showing VAT. On 1 January 2025 the limits were raised considerably:

€25,000 previous-year turnover (previously €22,000)
€100,000 expected turnover in the current year (previously €50,000)

If you stay below both thresholds, you do not have to charge VAT and no longer have to file advance VAT returns (the obligation ceased from 2025). In return, you yourself may not deduct input VAT, meaning you pay the full gross price on purchases.

Important: since 2025 the €25,000 limit is a real limit. If you exceed it during the year, you drop out of the scheme from the following month, not only in the following year as before.

The mandatory note on the invoice

Every small-business invoice must carry a note explaining why no VAT is shown. A proven wording:

“Under § 19 UStG no value added tax is charged.”

Variants such as “No VAT shown due to application of the small-business scheme under § 19 UStG” are also allowed. The only thing that matters is that the reference to § 19 is recognisable, otherwise the client might assume you simply forgot the VAT.

What you must not do: show VAT even though you are a small business. If you do anyway (e.g. “19% VAT included”), you owe the amount to the tax office under § 14c UStG, even if you never received it.

All further mandatory details

Apart from showing the tax, the same mandatory details apply as for normal freelancer invoices:

Name and address of you and the client
Tax number (you generally do not need a VAT ID, though it can be useful, see below)
Date of issue + sequential invoice number
Description of the service + date of supply
Amount (no net breakdown needed, as there is no VAT)
§ 19 note
Payment terms + IBAN

Since you do not show VAT, the net/VAT/gross breakdown is omitted. You simply state the total amount.

VAT ID despite small-business status? When it pays off

At first glance, as a small business you do not need a VAT identification number. But there are two scenarios where it pays off:

EU dealings: as soon as you provide services to an EU company or obtain goods from another EU country, you need a VAT ID, even as a small business.
Data protection: the personal tax number contains information about your tax office and is hard to protect on publicly accessible invoices. A VAT ID is neutral and can be displayed publicly.

You apply for the VAT ID at the Federal Central Tax Office, the application is free and takes a few working days.

Archive the invoice and, if needed, generate PDF/A

Small businesses are also subject to the GoBD and the ten-year retention obligation. The simplest solution: create the invoice with the invoice generator, export it as a PDF and convert the result with the PDF/A converter for audit-proof archiving. If you need a digital signature, Sign PDF helps.

For clients in the public sector, the e-invoice has been mandatory since 2025 (XRechnung format). There is a separate tool for this: create an e-invoice. Even as a small business you are obliged on the receiving side to accept e-invoices, on the sending side only if you supply public-sector clients.

Pitfalls for small businesses

VAT shown despite § 19: you owe it to the tax office under § 14c UStG. A correction invoice is needed immediately, otherwise you pay real money for a mere typo.
Threshold exceeded during the year: since 2025 you drop out of the scheme immediately. Plan a buffer, splitting it into the following year is no longer possible.
Forgetting that input-VAT deduction is gone: purchases for your business are more expensive gross. For larger investments, opting for standard taxation sometimes pays off.
Reverse-charge trap on EU purchases: if as a small business you buy software from an EU provider, reverse charge may apply and you owe VAT after all. Apply for a VAT ID and inform the supplier.
E-invoice obligation from 2025: even without an obligation to send, you must be able to receive and archive e-invoices. A plain PDF is not enough, make the XRechnung or ZUGFeRD format readable.

Write your § 19 invoice with the correct note text

Create a small-business invoice

Frequently asked questions about the small-business scheme

Is the small-business scheme worth it at all?

If your clients are mostly private individuals, yes. Private clients otherwise pay 19% more without being able to deduct VAT. With purely B2B clients the scheme is often disadvantageous: you cannot deduct input VAT, and your clients would have deducted the VAT anyway.

Can I voluntarily waive the small-business scheme?

Yes, by a declaration of waiver to the tax office. But you then bind yourself to standard taxation for at least 5 years. Sensible if you invest a lot or sell mainly to companies.

What happens if I accidentally exceed the threshold?

Since 2025 you drop out of the scheme with the following month. All subsequent invoices must show VAT. The invoices issued VAT-free until then remain valid, the transition does not work retroactively.

As a small business, must I file an advance VAT return?

Since 1 Jan 2025, no longer. Previously it was mandatory (even with nil returns). Today the VAT return as part of the annual income tax return is enough.

Do I need my own bookkeeping as a small business?

An income-surplus statement (EÜR) is mandatory as soon as you are self-employed. Double-entry bookkeeping you only need once you are a commercial trader and exceed €80,000 profit (from 2024), as a self-employed professional, never.