Small Business Status Check
Check if you can use the small business regulation (§19 UStG) and are exempt from VAT.
Important Changes from 2025
- • Threshold: {amount} Increased from €22,000 to {amount} (net)
- • Threshold: {amount} Increased from €50,000 to {amount} (net)
- • Important: The thresholds now refer to net amounts!
New Business?
Did you start this year?
📊 Your Revenue
Threshold: {amount}
Threshold: {amount}
You meet the requirements for the small business regulation.
What does this mean?
- →Your invoices must not show VAT
- →Add the note according to §19 UStG to your invoices
- →You cannot claim input tax deduction
Revenue Thresholds
Required Note on Invoices
As a small business, you must note on every invoice:
"According to § 19 UStG, no VAT is calculated."
No Input Tax Deduction
As a small business, you cannot deduct input tax from your purchases. VAT on business expenses is a cost factor for you.
Option for Regular Taxation
You can voluntarily switch to regular taxation (5-year commitment). This can make sense with high investments or B2B customers.
Exceedance in Current Year
If the {amount} threshold is exceeded, the exemption ends immediately – not only next year!
§19 UStG Explained
The small business regulation according to § 19 UStG exempts entrepreneurs with low revenues from the obligation to charge and pay VAT. This significantly simplifies accounting.
Requirements (from 2025)
- Previous Year Revenue: The revenue in the previous year must not exceed {amount} net.
- Current Year: The revenue in the current year must not exceed {amount} net.
- New Businesses: For businesses started in the current year, the expected annual revenue is annualized.
Advantages and Disadvantages
Advantages ✓
- • • No VAT advance returns
- • • Simpler accounting
- • • Lower prices for private customers
- • • Less bureaucracy
Disadvantages ✗
- • • No input tax deduction possible
- • • May appear unprofessional for B2B
- • • Higher effective costs for purchases
- • • Must observe revenue thresholds
⚠️ Legal Notice
This check is for orientation only and does not replace tax advice. The information refers to the legal situation 2025. In case of uncertainty, please consult a tax advisor or the responsible tax office.
How the Small Business Status Check Works
- Enter your previous year's revenue (net amount, excluding VAT)
- Enter your current year revenue to date (net)
- Enter your expected total revenue for the current year
- For new businesses, select your start month for accurate annualization
- The calculator checks all three thresholds and provides your eligibility status
Common Scenarios
New Freelancer Starting in 2025
Started in March 2025, expects €30,000 net revenue. Annualized: €30,000 × 12/10 = €36,000. Eligible if stays under €100,000 threshold.
Existing Business with €20,000 Previous Year
Previous year: €20,000 net (under €25,000 threshold). Current year: €40,000 expected. Eligible for small business status.
Business Approaching Threshold
Previous year: €24,000 net. Current year: €95,000 expected. Warning: Close to threshold, monitor closely.
Common Mistakes to Avoid
- Using gross revenue instead of net revenue (thresholds are now net amounts)
- Forgetting to annualize expected revenue for new businesses
- Not monitoring revenue throughout the year
- Exceeding threshold and not switching to regular taxation immediately
- Not adding the required §19 UStG note on invoices
Frequently Asked Questions
What changed in 2025?
Thresholds increased: Previous year from €22,000 to €25,000 net, current year from €50,000 to €100,000 net. All thresholds now refer to net amounts (excluding VAT).
What happens if I exceed the threshold?
If you exceed the current year threshold (€100,000 net), the small business status ends immediately. You must charge VAT from that point and inform the tax office.
Can I switch to regular taxation voluntarily?
Yes, you can voluntarily switch to regular taxation with a 5-year commitment. This can be advantageous with high business expenses (input tax deduction) or B2B customers.
Do I need to show VAT on invoices as a small business?
No, you must NOT show VAT. Instead, add the note: 'According to §19 UStG, no VAT is calculated.'
Can I deduct input tax as a small business?
No, small businesses cannot deduct input tax. VAT on purchases becomes a cost. This is why regular taxation may be better for businesses with high expenses.