The Kleinunternehmerregelung (small business regulation) is Germany's most founder-friendly tax rule, and most creative professionals either don't know about it or are confused by the details. If your annual revenue is under EUR 22,000, this regulation lets you skip VAT entirely. For a creative business in the early stages, that's a massive simplification.
What Kleinunternehmer Actually Means
Under Section 19 of the German VAT Act (UStG), if your gross revenue was under EUR 22,000 in the previous year AND is expected to stay under EUR 50,000 in the current year, you don't have to charge, collect, or remit VAT (Umsatzsteuer/MwSt.).
What this means in practice:
- Your invoices show prices without VAT
- You must include a note on every invoice: "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet" (No VAT charged per Section 19 UStG)
- You don't file monthly or quarterly VAT returns (USt-Voranmeldung)
- You can't deduct VAT on your own purchases
Step-by-Step Setup
1. Register your Gewerbe. Go to your local Gewerbeamt (trade office). In Berlin, you can do this online. Cost: EUR 26. You'll get a Gewerbeschein (trade certificate) immediately.
2. Wait for the Finanzamt questionnaire. Within a few weeks, you'll receive the "Fragebogen zur steuerlichen Erfassung" from your local tax office. This asks about your expected revenue, business type, and whether you want to use the Kleinunternehmerregelung. Check yes.
3. Get your Steuernummer. After processing your questionnaire, the Finanzamt issues your tax number. This goes on all your invoices.
4. Start invoicing. You're officially in business.
The VAT Trade-Off
Not charging VAT means two things:
Advantage: Your prices are 19% cheaper than VAT-registered competitors for end consumers (B2C). Since you're not adding 19% MwSt., a EUR 100 service costs your customer EUR 100, not EUR 119.
Disadvantage: You can't deduct VAT on business expenses. That EUR 1,200 laptop cost you EUR 1,200, not EUR 1,008.40 (the net price). If you have high expenses (equipment, software, materials), regular VAT registration might save you money even under the EUR 22,000 threshold.
For most creative businesses in the early stages, the advantage outweighs the disadvantage because your revenue is low and administrative simplicity has real value.
What Counts as Revenue?
Everything you invoice. Product sales, service fees, subscription income, digital product sales, affiliate commissions. It doesn't matter where the customer is located - all revenue counts toward the EUR 22,000 threshold.
What doesn't count: private asset sales, grants that aren't tied to specific services, and bank interest.
Selling Digital Products
Digital products (software, courses, templates) follow the same rules for Kleinunternehmer. You sell them without VAT and include the Section 19 notice. For EU customers, the OSS (One Stop Shop) rules technically apply, but the Kleinunternehmerregelung takes precedence as long as you're under the threshold.
For RAXXO Studios, digital products like the Git Dojo developer toolkit are sold through Shopify with EUR pricing and no VAT added.
Bookkeeping Requirements
Even as a Kleinunternehmer, you need proper bookkeeping. Germany requires:
- Einnahmen-Überschuss-Rechnung (EÜR): A simplified profit and loss statement. Revenue minus expenses equals profit. You file this with your annual tax return.
- Invoice archive: Keep all incoming and outgoing invoices for 10 years. Digital storage is fine.
- Bank records: Use a separate business bank account (not legally required but practically essential). Keep all statements.
Tools like SevDesk or lexoffice handle the EÜR automatically. They cost EUR 10-20/month and save hours of spreadsheet maintenance.
Health Insurance
This is the part that surprises many new founders. As a self-employed person in Germany, you must have health insurance, but you're no longer in the employee system. Your options:
- Gesetzliche Krankenversicherung (GKV): Public health insurance as a voluntary member. Minimum contribution is about EUR 200/month for low earners. Scales with income up to the contribution ceiling.
- Private Krankenversicherung (PKV): Private health insurance. Can be cheaper when you're young and healthy, but premiums increase with age and don't cover family members automatically.
Most solo creative founders start with public insurance. It's simpler, covers family members, and the minimum contribution is manageable.
When to Leave Kleinunternehmer Status
If you exceed EUR 22,000 in annual revenue, you must register for regular VAT from January of the following year. Plan for this transition:
- Your prices effectively increase by 19% (or you absorb the VAT, reducing your margin)
- You start filing monthly/quarterly VAT returns
- You CAN now deduct VAT on expenses (which partially offsets the hassle)
Some founders voluntarily leave Kleinunternehmer status before hitting the threshold because the VAT deductions on their expenses (studio rent, equipment, software) save more than the administrative burden costs.
Common Mistakes
Forgetting the invoice notice: Every Kleinunternehmer invoice MUST state why there's no VAT. Missing this can trigger issues with the Finanzamt.
Not tracking the threshold: If you realize in November that you've passed EUR 22,000, it's too late. Track monthly and plan accordingly.
Mixing personal and business finances: Even though it's not legally required, a separate bank account prevents accounting nightmares.
RAXXO Studios operates from Berlin as a creative business. Browse the products at raxxo.shop.
Dieser Artikel enthält Affiliate-Links. Wenn du dich darüber anmeldest, erhalte ich eine kleine Provision - für dich entstehen keine Mehrkosten. Ich empfehle nur Tools, die ich selbst nutze. (Werbung)