Whether you’re a Freiberufler or a Gewerbetreibender, the same VAT thresholds and Kleinunternehmerregelung apply — but a few things work differently for freelance income.
Last updated: June 2026
No. The Kleinunternehmerregelung thresholds (€22,000 previous year, €50,000 expected current year) apply identically whether you’re a Freiberufler (liberal professional — consultants, designers, writers, IT freelancers, and similar) or a Gewerbetreibender (trade/commercial business). The distinction between Freiberufler and Gewerbetreibende matters for trade tax (Gewerbesteuer) and how you register with the Finanzamt, but not for VAT thresholds themselves.
If you freelance for multiple clients, all your invoiced income across every client is combined for the purpose of the threshold — there is no separate limit per client relationship.
Your relevant turnover for the Kleinunternehmerregelung is your total business revenue (Umsatz), not profit. If you freelance on the side of full-time employment, your salary doesn’t count — only your self-employed freelance revenue is assessed against the threshold. Secondary freelance income (an online course, consulting on the side of a main contract) is typically combined with your primary freelance income under the same Steuernummer.
Many freelancers who invoice mostly VAT-registered businesses opt out of the Kleinunternehmerregelung and charge standard VAT before being forced to, since the client can reclaim the VAT you charge — it’s cost-neutral to them, while you gain the ability to reclaim VAT (Vorsteuer) on your own business expenses. Freelancers who work mainly with private consumers often stay under the Kleinunternehmerregelung as long as possible, since it avoids adding 19% to their prices. See our dedicated Kleinunternehmer guide for the full trade-off.
You need a Steuernummer to invoice within Germany. A separate USt-IdNr (VAT identification number) is required specifically for cross-border EU B2B transactions and reverse charge invoicing.
No. Employment income (Lohn/Gehalt) is not part of your freelance turnover calculation. Only your self-employed freelance revenue is assessed against the Kleinunternehmer thresholds.
No. VAT/Kleinunternehmer status is per Steuernummer/business, not per client. Combined turnover across all clients counts toward the threshold.
Correct — Freiberufler are generally exempt from trade tax (Gewerbesteuer), unlike Gewerbetreibende, but this is separate from VAT treatment, which applies the same way to both.
Generally no on purchases made while you were a Kleinunternehmer, since you weren’t charging or reclaiming VAT at that time — the switch generally applies going forward from your new status.
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