Information about the special scheme for small enterprises

For entrepreneurs with a low turnover, the German VAT Act provides for a simplification of taxation - namely the so-called small business regulation. This exempts entrepreneurs and companies from the obligation to show VAT on invoices and pay it to the tax office. Accordingly you are not entitled to deduct input VAT if you make use of the special scheme. 

The special scheme only applies if the turnover has not exceeded EUR 22,000 in the previous calendar year and will presumably not exceed EUR 50,000. The special scheme for small enterprises (Kleinunternehmerregelung) applies by law unless you have not waived it (this can usually be done during the business registration for tax purposes = Fragebogen zur steuerlichen Erfassung). 

Please be aware that the status as a small enterprise (Kleinunternehmer) is only applicable for Germany and therefore not for other EU Member States. Other EU Member States may have similar special schemes for small enterprises. However, Italy and Spain do not have something similar in place. In France, for small businesses a specific VAT exemption applies. In any case, if you are established in other member states than Germany please contact a competent (local) tax advisor.