Kleinunternehmer (§19 UStG): the 25 000 and 100 000 € thresholds

Kleinunternehmer is a simplified regime under §19 of the VAT Act (Umsatzsteuergesetz): the business owner does not charge VAT (Umsatzsteuer) on invoices and does not keep complex VAT reporting. This is convenient for small services and for starting your own business.
Which thresholds apply from 2025:

• turnover in the previous year — no more than 25 000 € (previously it was 22 000 €);
• turnover in the current year — no more than 100 000 €;
• both conditions must be met at the same time.

What this means in practice:

• VAT is not shown separately on invoices; instead, a note is added stating that the §19 UStG regime applies;
• the input VAT (Vorsteuer) on your purchases cannot be reclaimed;
• as soon as current turnover exceeds 100 000 €, that very invoice is already taxed in the ordinary way — so keep track of the amount during the year;
• from 2025, Kleinunternehmer turnover is genuinely exempt from VAT, and not merely “not levied”.

The regime is voluntary, and you can opt out of it. Thresholds and details change from time to time, and your specific case depends on the type of activity — check with an official source or consult a tax adviser (Steuerberater).