What is a Kleinunternehmer?
In Germany, a Kleinunternehmer is a small business owner (freelancer or self-employed worker) whose annual revenue (income before deductions) is below €22,000. The small business owner regulation (Kleinunternehmerregelung) in Germany is designed to simplify tax obligations for freelancers and self-employed workers that have a low annual revenue.
Most notably, a Kleinunternehmer does not need to charge VAT when invoicing customers. This not only simplifies their accounting as they do not need to collect and pay VAT but also allows them to charge considerably lower prices than their VAT-paying competitors.
You can apply to be recognised as a Kleinunternehmer when registering as a freelancer in Germany via the Fragebogen zur steuerlichen Erfassung form. Rather than battle through the complex German form on your own, we recommend using Sorted's free English service to help ensure you complete the form correctly and are successfully registered as a Kleinunternehmer.
Sorted also offers a Kleinunternehmer Plan specifically for small business owners in Germany. For just €80 a year, Sorted will help prepare and submit all your required tax declarations as a freelancer.
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