Kleinunternehmer rules 2026: how long can you invoice VAT-free?

What is the Kleinunternehmerregelung?

Under §6 (1) 27 of the Austrian UStG, small businesses can invoice VAT-free while their annual net revenue stays under the threshold (€55,000 from 2025). You charge no VAT and file no UVA — but you also can't reclaim input VAT.

The mandatory clause

As a Kleinunternehmer you must state the legal basis of the exemption on every invoice:

"Umsatzsteuerbefreit – Kleinunternehmer gemäß §6 Abs 1 Z 27 UStG"

Billtree adds this automatically to every invoice once you enable Kleinunternehmer mode in Settings.

What if you exceed the threshold?

• Up to a 15% overrun, the exemption survives the current year; you join the VAT system the following year.
• A larger overrun means you must invoice with VAT from the moment you cross the line — in the same year.

Should you waive the exemption?

If your clients are mostly companies (who reclaim VAT) and you invest a lot, opting into VAT voluntarily can pay off — you reclaim input VAT too. The waiver binds you for 5 years. Talk to your accountant!

In Billtree you switch modes with a single toggle — your invoices follow the rules automatically.