Invoice Without VAT: The Complete Guide

Not every invoice needs to show VAT. But when exactly can you invoice without VAT - and what do you need to consider? This guide explains all cases and shows you how to write the invoice correctly.

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When Can an Invoice Be Without VAT?

There are four main reasons for invoices without VAT:

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1. Small Business Exemption (§ 19 UStG)

The most common option for self-employed individuals in Germany.

Requirements

• Previous year: Revenue max. €22,000 gross
• Current year: Expected revenue max. €50,000
• Application to tax office (or automatic for new businesses)

Required Statement on Invoice

Instead of VAT, you need this notice:

No VAT charged pursuant to § 19 UStG (small business regulation).

Example Small Business Invoice

INVOICE

Invoice Number: 2025-001
Date: April 22, 2025

[Your company data]

To:
Sample Company Ltd.
123 Sample Street
Sample City

Item  Description            Qty    Unit Price    Total
1     Website Landing Page   1      €800.00       €800.00
2     SEO Optimization       3 hrs  €80.00        €240.00

                                    Total: €1,040.00

No VAT charged pursuant to § 19 UStG (small business regulation).

Payment due within 14 days to:
IBAN: DE89 3704 0044 0532 0130 00

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2. Reverse Charge Procedure

For B2B services to other EU countries.

When Does Reverse Charge Apply?

• Service to a business (not private individuals)
• Customer is in another EU country
• You have the customer's VAT ID number

Required Information

1. Your VAT ID number
2. Customer's VAT ID number
3. Reference to reverse charge

Reverse charge: VAT liability transfers to the recipient.

Example Reverse Charge Invoice

INVOICE

Invoice Number: 2025-042
Date: May 15, 2025

From:
Max Mustermann Consulting
Sample Street 10, 80331 Munich, Germany
VAT ID: DE123456789

To:
Innovation Corp.
123 Tech Street, 1000 Brussels, Belgium
VAT ID: BE0123456789

Item  Description              Net Amount
1     Consulting Services      €2,500.00

                  Invoice Total: €2,500.00

Reverse charge: VAT liability transfers to the recipient
pursuant to § 13b UStG.

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3. Tax-Exempt Services (§ 4 UStG)

Some professions and services are exempt from VAT.

Tax-Exempt Professions and Services

Required Notice

This service is exempt from VAT pursuant to § 4 No. [X] UStG.

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4. Third-Country Deliveries

Exports outside the EU are VAT-free.

Requirements

• Delivery (not service) to customer outside the EU
• Export documentation available
• Confirmation of receipt or customs documents

Required Notice

Tax-free export delivery pursuant to § 4 No. 1a in conjunction with § 6 UStG.

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Checklist: Invoice Without VAT

Even without VAT, all mandatory information must be included:

• [ ] Full name and address (invoice issuer)
• [ ] Full name and address (recipient)
• [ ] Tax number OR VAT ID number
• [ ] Invoice date
• [ ] Sequential invoice number
• [ ] Type and scope of service
• [ ] Service date/period
• [ ] Net amounts
• [ ] Correct notice of exemption

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Common Mistakes to Avoid

1. Using Wrong Wording

Wrong: "No VAT" Correct: "No VAT charged pursuant to § 19 UStG."

2. Showing VAT Anyway

Problem: You show 0% or write "VAT: €0.00" Consequence: Can be considered unauthorized tax statement

3. Missing VAT ID for Reverse Charge

Problem: You forget the customer's VAT ID number Consequence: Reverse charge doesn't apply - you owe the tax yourself

4. Forgetting Small Business Notice

Problem: No reference to § 19 UStG Consequence: Formally incorrect (though no direct damage)

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Transition to Standard Taxation

What happens when you exceed the small business threshold?

When Does Standard Taxation Apply?

• Exceeding €22,000 revenue in the previous year
• Voluntary waiver of small business exemption

What to Do Then

1. Inform tax office (automatic upon exceeding)
2. Apply for VAT ID (if not already obtained)
3. Start charging VAT immediately
4. Submit VAT returns

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Input VAT Deduction for Small Businesses

As a small business, you cannot deduct input VAT. This means:

When Is Standard Taxation Better?

• High acquisition costs (laptop, office equipment)
• Customers are mainly VAT-deductible businesses
• Investments planned

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VAT-Free Invoicing with Clever Invoice

With Clever Invoice, you create correct VAT-free invoices:

1. Set up profile - Small business or standard taxation
2. Automatic notice - § 19 UStG text is inserted
3. Reverse charge detection - Automatic for EU customers
4. Tax-exempt services - Configurable per product

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Conclusion

Invoices without VAT are legal and necessary in many cases:

1. Small businesses - With reference to § 19 UStG
2. Reverse charge - B2B to EU countries
3. Tax-exempt services - Medical, education, etc.
4. Third-country export - Outside the EU

The correct notice is mandatory - without it, there can be problems with the tax office. With Clever Invoice, all notices are automatically correct on your invoice.