Does a small business have to show VAT?

No. If you use the small-business scheme under §19 UStG (Germany) or §6 (1) 27 öUStG (Austria), you do not show VAT on the invoice and may not show any. Instead, a note about the VAT exemption must appear on the invoice.

What note belongs on a small-business invoice?

A clear sentence is customary, such as "No VAT is charged in accordance with §19 UStG." (Germany) or a note about the small-business exemption under §6 (1) 27 öUStG (Austria). The exact wording is not strictly prescribed, but the note must be unambiguous.

What is the turnover threshold for the small-business scheme?

In Germany, since 2025 a threshold of 25,000 euros prior-year turnover and 100,000 euros in the current year applies. In Austria, the threshold was raised to 55,000 euros from 2025. As these amounts can change, please check the values currently in force.

Can a small business deduct input VAT?

No. If you use the small-business scheme, you do not show VAT and, in return, cannot claim input VAT from incoming invoices.

Guide · Small business

Small-business invoice: how to bill without VAT

As a small business you issue invoices without VAT and with a clear note about the exemption. But the legal basis and the turnover threshold differ between Germany and Austria — pick your country below and this guide shows the rules that apply to you.

What is the small-business scheme?

The small-business scheme lets businesses with low turnover avoid showing and remitting VAT. In return, they cannot claim input VAT. It is optional: if you waive it, standard taxation applies.

Rules for your country:

Legal basis & turnover threshold

In Germany the small-business scheme is governed by §19 UStG. Since 2025 you can use it if your turnover did not exceed €25,000 in the previous year and is not expected to exceed €100,000 in the current year. If you cross the €100,000 mark during the year, the scheme ends immediately — standard taxation applies from the transaction that exceeds the limit.

Mandatory fields of a small-business invoice

Name and address of the issuer and the recipient
Tax number (a VAT ID is usually not required as a small business)
Issue date and a sequential invoice number
Quantity and type of the service, and the date of supply
The invoice amount — with no VAT shown
A clear note about the small-business VAT exemption

The correct note

The invoice must clearly state why no VAT is charged. The exact wording is flexible, but the note must be unambiguous — for example:

„Gemäß §19 UStG wird keine Umsatzsteuer berechnet.“

Note: This guide provides general information and is not a substitute for tax or legal advice. Thresholds and rules can change; the laws currently in force govern.