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Small Business Tax Calculator 2026: Kleinunternehmer vs Regular VAT

Use this comparison calculator to see whether the Kleinunternehmerregelung (small business VAT exemption, § 19 UStG) or regular taxation (Regelbesteuerung) gives you more net income. Enter your revenue, customer type, and expenses — the calculator shows which option is better for you. Updated with the 2025 thresholds: €25,000 (prior year) and €100,000 hard cap (current year).

100% B2C (private customers) 100% B2B (business customers)

Gross expenses (with VAT) — e.g. software, office supplies, rent

Kleinunternehmerregelung vs. Regular Taxation

The Kleinunternehmerregelung (small business regulation, § 19 UStG) exempts you from VAT — you don't charge VAT on your invoices and don't need to file VAT returns. The trade-off: you can't recover input VAT (Vorsteuer) on your business expenses.

With regular taxation (Regelbesteuerung), you must add 19% VAT to your services, but you can reclaim the input VAT on business expenses from the tax office.

New Revenue Thresholds Since 2025

Since January 1, 2025, new thresholds apply for the Kleinunternehmerregelung:

  • €25,000 revenue in the prior year (previously €22,000)
  • €100,000 hard cap in the current year (previously €50,000 estimate)

Important: The €100,000 is a hard cutoff. The invoice that pushes you over the limit becomes VAT-liable immediately.

The €100,000 Trap

Unlike before, the current-year threshold is no longer an estimate. If on October 15 an invoice of €5,000 pushes you past €100,000, you must charge 19% VAT on that specific invoice. All previous invoices remain VAT-free.

That's why you need to track your cumulative annual revenue carefully — especially once you pass €80,000.

When Is Regular Taxation Better?

Regular taxation (Regelbesteuerung) is more beneficial when you:

  • Have high business expenses (input VAT deduction saves money)
  • Have mostly B2B customers (VAT is neutral for them)
  • Plan expensive purchases (e.g. equipment, office furniture)

When Is the Kleinunternehmerregelung Better?

The small business exemption is more advantageous when you:

  • Have mostly B2C customers (end consumers pay less)
  • Have low business expenses (no input VAT advantage)
  • Want less administrative work (no VAT returns needed)

More about VAT in Germany: VAT for Freelancers: Returns, Input VAT & Deadlines

More calculators: Work Expenses Calculator | Depreciation Calculator

📖 Related Article

Kleinunternehmer rules 2026: new thresholds, pros and cons, and when switching makes sense.

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How Restio Helps

This calculator shows the comparison for ONE scenario. Restio tracks your revenue automatically and warns you when you're approaching the €100,000 threshold — before it's too late.

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Frequently Asked Questions

What happens if I cross the €100,000 threshold mid-year? ▼

The specific invoice that pushes you over €100,000 becomes VAT-liable immediately. You must charge 19% VAT starting from that invoice. All previous invoices remain VAT-free.

Can I switch from Kleinunternehmer to regular taxation? ▼

Yes, you can voluntarily switch to regular taxation (Regelbesteuerung). However, you're then locked in for 5 calendar years and can't switch back during that period.

I only have B2B customers — which option is better? ▼

With purely B2B customers, regular taxation is usually better. Your customers deduct input VAT anyway, so your VAT charge doesn't make you more expensive. Meanwhile, you benefit from recovering input VAT on your own expenses.

Is Kleinunternehmer always simpler? ▼

Administratively yes — no VAT returns, no input VAT tracking. But financially it's not always cheaper: with high expenses, you lose the input VAT deduction, which can cost more than the administrative savings.

What are the current revenue thresholds? ▼

Since January 2025, the thresholds are: €25,000 revenue in the prior year, and a hard cap of €100,000 in the current year. The €100,000 is an immediate cutoff — not an estimate like before.