{"id":4157,"date":"2022-09-21T12:13:04","date_gmt":"2022-09-21T10:13:04","guid":{"rendered":"https:\/\/www.accountable.de\/blog\/reverse-charge-for-kleinunternehmer\/"},"modified":"2025-03-13T10:00:00","modified_gmt":"2025-03-13T09:00:00","slug":"reverse-charge-for-kleinunternehmer","status":"publish","type":"post","link":"https:\/\/www.accountable.de\/en\/blog\/reverse-charge-for-kleinunternehmer\/","title":{"rendered":"Reverse Charge for Kleinunternehmer"},"content":{"rendered":"\n

Are you just starting your own business or are you self-employed on a part-time basis? Then you have probably chosen the Kleinunternehmer rule (small business regulation). Because as a Kleinunternehmer you have less tax obligations and the bureaucratic effort is less.<\/strong><\/p>\n\n\n\n

But what does the Kleinunternehmer regulation mean for invoicing clients from other EU countries or third countries? Here we explain what you have to pay attention to. <\/strong><\/p>\n\n\n\n

What is the Kleinunternehmerregelung?<\/h2>\n\n\n\n

Anyone who sets up their own business in Germany is generally obliged to charge VAT on their products or services and pay it to the Finanzamt (tax office). However, there is an exception that exempts from paying VAT: the Kleinunternehmer regulation.<\/p>\n\n\n\n

Especially at the beginning, it is a great advantage for many to register as a Kleinunternehmer (small business owner). This exempts you from VAT, allows you to offer lower prices to your private customers and also means that you do not have to submit a regular VAT return<\/a>.<\/p>\n\n\n\n

This is possible if you don’t exceed the income limit of 25,000 euros in the first year of self-employment. That means, if you don’t make more than 25,000 euros in the first year as a freelancer and also do not make more than 100,000 euros in the following year, you can register as a Kleinunternehmer.<\/p>\n\n\n\n

\u27a1\ufe0f Find out when it makes sense to use the Kleinunternehmer rule and what happens when your small business status expires here<\/a>.<\/p>\n\n\n\n

What is the Reverse Charge regime?<\/h2>\n\n\n\n

The Reverse Charge regime helps to simplify purchases and sales with VAT within the EU. It regulates the transfer of VAT between sellers and customers located in different EU countries. This sounds more complicated than it is. Here, we explain what you need to know.
<\/strong><\/p>\n\n\n\n

If you sell goods or services as a self-employed person to clients in other EU countries, you don’t have to include VAT on your invoices. Because in this case, the VAT must be paid in the country of the client. This applies if you and your client are both subject to VAT. If you are selling services or goods to private individuals in other EU countries, the Reverse Charge procedure does not apply.<\/p>\n\n\n\n

\u27a1\ufe0f Do you want to know about the Reverse Charge regime? We clarify all it’s specifics here<\/a>.<\/p>\n\n\n\n

Reverse Charge also for Kleinunternehmer? <\/b><\/h2>\n\n\n\n

Invoices to clients within the EU <\/b><\/h3>\n\n\n\n

You sell goods<\/strong> to people in other EU countries and have chosen the Kleinunternehmer regulation? Then the invoicing is usually quite simple. You issue your invoice without VAT and refer to your status as a Kleinunternehmer with a sentence like this: “In accordance with \u00a7 19 UStG, no sales tax is charged”.<\/p>\n\n\n\n

You can then use an invoice template with the legal mention for each of your sales to other EU countries. Most EU countries also have a form of Kleinunternehmer rule or small business status.<\/p>\n\n\n\n

Do you provide services<\/strong> to entrepreneurs or companies abroad? These services are “non-taxable”, which means that they are not included in your profit limit of 25,000 euros. You should document that your customers abroad are entrepreneurs or companies and not private individuals, for example by noting their VAT ID.<\/p>\n\n\n\n

Mandatory information for invoices within the EU<\/h3>\n\n\n\n

Here is a reminder of what information should be on your invoices.<\/p>\n\n\n\n