Thrivelance Tools
Check whether you qualify for the German small-business VAT exemption under the 2025 rules. Most online guides still quote the old €22,000 / €50,000 gross limits — this uses the current €25,000 / €100,000 net thresholds.
Net turnover (Umsatz), not profit. Updates as you type.
The reform raised the limits to €25,000 (prior year) and €100,000 (current year) and switched them from gross to net amounts. It also made the €100,000 figure a hard ceiling: the transaction that pushes you over it is already subject to VAT, rather than only affecting the following year.
If you founded this year there is no prior year, so only the current-year limit applies — and for new businesses that limit is €25,000, not €100,000. Tick the box to apply the new-business rule.
As a Kleinunternehmer you charge no VAT — simpler invoices and a price edge with private customers. But you can't reclaim the VAT on your own purchases, so heavy startup spending or mostly-business customers can make regular VAT taxation the smarter choice.
Self-employed in Germany? Compare the trade-tax impact of your activity in the Freiberufler vs Gewerbe Calculator.
Common questions about this calculator.
Your net turnover must be at most €25,000 in the prior calendar year and at most €100,000 in the current year. These replaced the old €22,000 / €50,000 limits and are now net amounts rather than gross.
Under the 2025 rules the €100,000 limit is a hard ceiling. The transaction that pushes you over it is already subject to VAT, and so is everything after it that year. Earlier invoices in the year stay VAT-free.
A newly founded business has no prior year, so only the current-year limit applies — and for new businesses that limit is €25,000, not €100,000. Exceed €25,000 and you must start charging VAT.
You charge no VAT on your invoices and don't file VAT returns, which keeps admin simple and your prices lower for private customers. In exchange you cannot reclaim the input VAT (Vorsteuer) on your own purchases.
Yes. You can waive the exemption and opt into Regelbesteuerung, which is often better if you have large startup costs or mostly business customers who can reclaim VAT themselves. The choice binds you for several years, so weigh it carefully.
