Invoicing as a small business: how to do it right

Who counts as a small business?

The small-business scheme under section 19 of the German VAT Act applies since 2025 to businesses with prior-year turnover of up to 25,000 euros that do not exceed 100,000 euros in the current year. If you pass the 100,000 euro limit during the year, VAT applies from the turnover that exceeds it.

The scheme applies automatically when the conditions are met. You can waive it (opt for regular taxation) but are then bound to that choice for five years.

What belongs on the invoice?

• name and address of you and your customer
• your tax number or VAT ID
• invoice date and a consecutive, unique invoice number
• quantity and type of the service plus the date or period of supply
• the amount, without VAT and without a tax rate
• a note on the small-business scheme, for example: "No VAT is charged in accordance with section 19 UStG."

What you must not write

Do not show VAT, not even as "included" tax. Anyone who shows VAT openly owes it to the tax office even though they do not charge it under section 19 (section 14c UStG).

E-invoices for small businesses

Small businesses must be able to receive e-invoices. They do not have to issue them. If you do write an e-invoice, it uses tax category "E" (exempt) with the reference to section 19.

How Saldiqo helps

You switch on "small business" in your company details. Saldiqo leaves out the VAT lines, adds the note to every invoice and e-invoice, calculates your reports without input VAT and warns you as you approach the turnover limits.

Frequently asked questions

Which sentence belongs on the invoice?

For example "No VAT is charged in accordance with section 19 UStG." What matters is that the reference to the small-business scheme is recognizable.

May I deduct input VAT?

No. As a small business you do not deduct input VAT. Incoming invoices count with the gross amount as a business expense.

What happens if I exceed the limit?

Regular taxation applies, in the current year from the turnover above the 100,000 euro limit, otherwise from the following year. From then on you write invoices with VAT.

Do I need a tax number on the invoice?

Yes, either the tax number or the VAT ID.

Do I have to issue e-invoices as a small business?

No. You must be able to receive them though.

More guides

• E-invoicing in Germany: obligation, formats and deadlines
• The EÜR (cash-basis profit calculation) explained simply
• GoBD for self-employed people: the essentials
• Writing a payment reminder: deadlines, interest and fees
• Writing an invoice: the mandatory details under section 14 UStG
• Assigning invoice numbers correctly
• XRechnung or ZUGFeRD: what is the difference?