Writing Invoices for Small Businesses
Legally Compliant Invoices for Small Business Owners
The application of the small business owner regulation makes invoicing easier compared to VAT-liable companies. However, it is still important to use professional invoicing software to convey an established and professional impression as a small business owner.
This way, you can issue an invoice without value added tax (VAT), but still make an impression that is worth seeing.
Use your own logo or letterhead and strengthen your branding.
Benefit from the same advantages and features as large customers.
Explanation of the small business regulation
How does the small business regulation work?
In order to simplify accounting and keep bookkeeping efforts low, entrepreneurs can use the so-called small business regulation if they fall below a certain revenue threshold.
They do not have to calculate and pay value-added tax (VAT). The legal basis for this can be found in the Value Added Tax Act (UStG). Small business owners should indicate on their invoices that they do not charge VAT in accordance with § 19 UStG.
The advantage of the small business regulation: You save the additional VAT pre-registration with the tax office – and this can be a relief.
On the other hand, you cannot benefit from input tax deduction. However, input tax deduction can be worthwhile, especially after starting a business. Therefore, you should carefully consider and discuss the decision for or against the small business regulation with your tax office.
Here are the 10 most common questions about small businesses.
Tax freedom for small business owners:
Invoices created under the small business regulation only differ from other invoices by the absence of value-added tax (VAT) being shown. Apart from that, these invoices still have to comply with all requirements of the GoBD (Principles of Proper Digital Record Keeping and Document Storage).
Just because you apply the small business regulation does not mean that you are exempt from submitting an annual sales tax return. On the contrary, you still have to submit it. The good news is that with the service of easybill, you can do this with minimal effort.
Invoicing software for small businesses
Easybill for small business owners
Benefit from a comprehensive range of features even with the small business exemption. Just because you operate as a small business owner does not mean that you can take a lot of time for invoice creation and bookkeeping. That’s precisely why you can also benefit from our comprehensive range of features with the small business exemption:
Create professional invoices with just a few clicks:
Keep track of payment receipts:
Automatically send reminders:
Allow access for your tax consultant:
Invoice software for small business
Are you a small business owner with limited time?
Our invoice software is tailored to the needs of small business owners and helps you save time and keep track of your finances.
No need to worry about the small business regulation
We ensure that your invoices always meet the legal requirements and you don’t have to worry about anything else.
Free trial period. No payment information required. No installation required.
Frequently Asked Questions about easybill and small businesses
Ideally, you should use invoicing software to manage your income and expenses. Such software enables you to create and track invoices, manage payments, and categorize expenses. You should also consider hiring a tax advisor who can assist you in managing your finances and keep you up-to-date on tax regulations and deadlines. Regularly creating reports and conducting analyses can also help you gain a better overview of your finances, allowing you to reduce expenses and increase income, among other things.
Yes, it is possible to customize your offers with our layout and template editor. Personalized offers help you strengthen your brand and leave a better impression on your customers.
With easybill, your data is in the best hands. Your data is stored exclusively on servers in Germany and protected by modern encryption standards. As an additional safeguard, two-factor authentication (2FA) is available to you. Everything about account security in easybill.
To be able to test all features, our 7-day free trial period always includes the BUSINESS package.
The free FREE package does not need to be booked. It activates automatically at the end of your trial period. Start your free trial at any time. Please note that we reserve the right to delete the free account after 90 days in case of inactivity.
Yes, as a small business owner, you are allowed to create your invoices online. There are no special restrictions for small businesses in this regard. When sending invoices by email, you must comply with legal requirements regarding mandatory information. Even easier, use our free invoice template! Don’t forget to archive your invoices. Instead of sending your invoices manually, you can also send them automatically with easybill.
The invoice of a small business owner does not differ significantly from regular invoices. You must still include the mandatory information on an invoice, except that you do not need to specify the value-added tax rate as a small business owner. Instead, you must include a note indicating that your invoice does not show any value-added tax, as you are exempted from it under the small business regulation.
The small business regulation is a tax simplification regulation for companies with an annual turnover of up to 22,000 euros. It allows small business owners to be exempt from value-added tax and not to show any VAT on their invoices. However, they still have to submit a VAT pre-registration and an annual VAT return. If the turnover in the current year exceeds the threshold of 22,000 euros, the small business regulation no longer applies. Click here for our guide on the small business regulation or a short explanatory video!
Yes, there are no hidden costs. Shipping credit must be booked separately, actively. You have full cost control at all times. Please note, however, that you must book the shipping credit separately and actively. Costs for additional employee accesses and finAPI transactions can be found in the price overview.
All paid memberships are available on a monthly, quarterly, half-yearly and yearly basis. You decide on the membership duration
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