The status is chosen in the tax questionnaire at the start — and waiving it binds you for 5 years. Do the maths before the checkbox, not after.
§ 19: Life Without VAT
Small entrepreneurs charge no VAT and skip VAT filings. The limits since 2025: €25,000 turnover last year and €100,000 in the current year.
✓ Verified: 18/07/2026
WHAT TO DO
AUTHORITY
Finanzamt
Federal agencyThe BZSt is the federal body; your personal tax matters go to the Finanzamt for your registered address.
› Details and tips
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Max recommends:
I started as a Kleinunternehmer next to my job: one checkbox in the tax registration questionnaire. A year later above the limit — the switch to standard VAT came by letter, no drama.
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Lea recommends:
The limit works per calendar year and forecast: starting in July you forecast half a year, but the year limits apply fully. An honestly mistaken forecast does not kill the status retroactively.
FREQUENTLY ASKED QUESTIONS
Employed and starting a side business — does the status fit? ▾
Perfectly: your salary does not count toward the turnover limit, only self-employed revenue. Notify your employer of the side activity if the contract requires it.
Are Kleinunternehmer and Freiberufler the same thing? ▾
No, two axes: Freiberufler versus Gewerbe is the activity type, Kleinunternehmer the VAT status. A freelance developer can be a Kleinunternehmer — or not.
What happens when I cross €100,000 mid-year? ▾
Since 2025 it is hard-edged: VAT applies immediately to the exceeding turnover; the year is not recalculated retroactively. Watch your numbers and prepare VAT invoices in advance.
My clients are companies — does the status hurt? ▾
B2B clients do not care about your VAT (they would deduct it), but YOUR lost input-VAT on equipment and software is a real cost. For B2B freelancers with purchases, regular taxation often wins.