What is the small-business VAT scheme?
§19 UStG lets businesses with low turnover skip charging VAT. This simplifies bookkeeping, but also means input tax can't be deducted. Whether the scheme applies to you depends on your prior-year turnover and your turnover forecast for the current year – the exact thresholds are set by the tax authorities and change from time to time.
Mandatory fields on a small-business invoice
- Full name and address of you and your customer
- Tax number or VAT identification number
- Issue date and a sequential, gapless invoice number
- Quantity and type of the service delivered
- Invoice amount (without a separate VAT line)
- A notice that the small-business scheme under §19 UStG applies
What does the mandatory notice say?
A common wording is: "No VAT is charged pursuant to §19 UStG." The exact wording isn't fixed by law down to the letter, but must clearly indicate that the scheme applies.
Small businesses and e-invoicing
Even as a small business, you can create electronic invoices (e.g. in ZUGFeRD format) and must be able to receive incoming e-invoices. The small-business scheme concerns VAT, not the technical invoice format.
Tax number on the invoice: what goes there?
Every invoice must show either your tax number or your VAT identification number. As a small business you usually only have a tax number, assigned by your tax office. You can find it on your tax assessment or in the letter confirming your tax registration. A VAT identification number is only needed if you applied for one, for example for business within the EU.
Writing an invoice as a subcontractor
As a subcontractor you write the invoice to your client by the same rules: all mandatory fields plus the §19 UStG notice, without a separate VAT line. For construction services, special rules such as the reverse-charge mechanism can apply. Have your tax adviser clarify this briefly before the first invoice.
Do I need a commercial register number on the invoice?
As a sole trader or small trade business without an entry in the commercial register, you have no register number and do not need to state one. It is not a mandatory field under the VAT Act. Registered companies such as a GmbH have additional details to show on business letters.
Invoice template to fill in
A template with all the fields is available in the small-business invoice template.
Writing an invoice as a small business: step by step
- Put your name, address and tax number at the top of the invoice.
- Add the customer's name and address.
- Assign the invoice date and a sequential invoice number.
- Describe the service with quantity, type and service period.
- State the amount without VAT, so one final total instead of net and gross.
- Add the §19 UStG notice, your bank details and the payment term.
Examples of the notice wording
Common wordings on German invoices (the text is written in German):
- „Gemäß §19 UStG wird keine Umsatzsteuer berechnet.“
- „Kein Ausweis von Umsatzsteuer aufgrund der Anwendung der Kleinunternehmerregelung nach §19 UStG.“
- „Kleinunternehmer im Sinne von §19 UStG: Der Rechnungsbetrag enthält keine Umsatzsteuer.“
Important: the invoice must show neither a tax rate nor a tax amount. The notice replaces both.
Invoice number: how to assign it correctly
The invoice number must be unique and sequential. Numbers like 2026-001, 2026-002 or RE-0001 are common. You can restart every year or keep counting. What matters is that you stick to your system and use each number exactly once. A cancelled invoice keeps its number and is marked as cancelled.
Do I have to issue e-invoices as a small business?
No. As a small business under §19 UStG you are not obliged to issue e-invoices; a PDF or paper invoice remains possible. You do need to be able to receive e-invoices.
This page doesn't replace individual tax advice. As of: September 2026.
