Back to feed
Finance January 29, 2026

"Germany: Kleinunternehmer vs. Regular VAT"

"Auf Rechnung! Understanding sequential numbering, VAT exemption, and correct invoicing in Germany."

Freeman in Germany: The Bureaucracy Guide

Germany is known for paperwork ("Papierkram"), and freelancing is no exception. Whether you are a *Freiberufler* (Doctor, Lawyer, Designer) or a *Gewerbetreibender*, your invoices must be perfect to be accepted by the Finanzamt.

The Kleinunternehmer Rule

If your revenue was under €22,000** last year and under **€50,000 this year, you can choose to be a "Small Business" (*Kleinunternehmer*).
  • Benefit: You don't charge VAT (19%).
  • Requirement: You must add a specific legal phrase to every invoice: *"Gemäß § 19 UStG wird keine Umsatzsteuer berechnet."*
  • Mandatory Invoice Fields

    1. Fortlaufende Rechnungsnummer: A unique, sequential invoice number. 2. Steuernummer: Your tax ID. 3. Leistungszeitraum: Date of service delivery.

    How SparkyMinis Handles German Precision 🇩🇪

    1. For Kleinunternehmer (No VAT)

  • Go to: `Dashboard > Settings > Business Profile`.
  • Add to Default Footer: *"Gemäß § 19 UStG wird keine Umsatzsteuer berechnet."*
  • This ensures every PDF you generate automatically includes the mandatory legal disclaimer.
  • 2. For Regular VAT (Regelbesteuerung)

  • Create a `MwSt 19%` Tax Chip.
  • Apply it to your line items.
  • The system separates the Netto (Net) and Brutto (Gross) amounts clearly.
  • 3. Sequential Numbering

    SparkyMinis handles the *Fortlaufende Rechnungsnummer* automatically.
  • Format: `YYYY-001`, `YYYY-002`.
  • This format is accepted by German tax authorities as it is unique and distinguishable.
  • Set Up Your German Tax Profile →
    S
    SparkyMinis Team Editor
    Follow: