"Kleingewerbe" in Austria — The Myth
What People Actually Mean
| They Say | They Usually Mean | Legal Reality |
|---|---|---|
| "I want to start a Kleingewerbe" | A small business below the tax threshold | You register a normal trade (free or regulated) + stay below €55,000 gross per year for the VAT exemption |
| "Is there a simplified registration?" | Less bureaucracy for small businesses | Registration is the same for all sizes. It's already free and simple. |
| "Can I start without registering?" | Informal work or hobby income | Any regular, for-profit activity requires trade registration. No exceptions. |
The Kleinunternehmerregelung (Small Business Tax Exemption)
What most people call "Kleingewerbe" is actually a tax rule:
Kleinunternehmerregelung (§6 Abs 1 Z 27 UStG)
- Threshold: €55,000 revenue per calendar year, gross — since 1 January 2025
- Two years count: The limit must not have been exceeded in the current or the previous calendar year
- 10% tolerance: Up to €60,500 you may keep invoicing without VAT for the rest of that year; above that, VAT applies to every further invoice from that point on
- Effect: No VAT (Umsatzsteuer) charged or collected — and no input VAT deduction either
- Trade type: Applies to ANY trade (free or regulated)
- Optional: You can opt OUT and charge VAT if you want
- No separate registration: Just stay below the threshold
The Threshold Over Time — Three Values in Almost 20 Years
Many websites and AI assistants still quote €30,000 or €35,000 — those limits applied until 2019 and until the end of 2024 respectively:
| Period | Limit | Basis | Tolerance rule | Legal basis |
|---|---|---|---|---|
| 2007–2019 | €30,000 | net | 15 percent, once in 5 years | BGBl I 101/2006 |
| 2020–2024 | €35,000 | net | 15 percent, once in 5 years | BGBl I 103/2019 |
| since 1 Jan 2025 | €55,000 | gross | 10 percent until year-end (= €60,500) | BGBl I 113/2024 + BGBl I 144/2024 |
A curiosity worth knowing: the first 2024 amendment set the new gross limit at €42,000 — but a second amendment replaced it with €55,000 before either took effect. The €42,000 figure was never applicable law, yet it still circulates online.
The Second Limit: The SVS Micro-Business Exemption
Separate from VAT, the Kleinstunternehmer exemption (§4 Abs 1 Z 7 GSVG) can free you from SVS health- and pension-insurance contributions on application — only accident insurance (€12.95 per month) remains. 2026 values:
SVS Exemption (2026 values)
- Turnover cap: €55,000 from all business activities
- Profit cap: €6,613.20 per year (moves annually with the marginal-earnings threshold)
- Both must hold — unlike VAT, profit matters here too
- Personal requirements: at most 12 months of GSVG insurance within the last 5 years, or certain age and child-care constellations
- One lever, two limits: the GSVG references the VAT threshold of §6 Abs 1 Z 27 UStG directly — so the SVS turnover cap jumped from €35,000 to €55,000 automatically in 2025
Exceeding the caps means paying the contributions after the fact; a surcharge of 9.3 percent applies only if the SVS learns about it through your tax assessment — reporting it yourself avoids the surcharge. Details for side businesses: Side business while employed.
What You Actually Need To Do
- Register a normal trade (free or regulated) — see our guide
- Stay below €55,000 gross per year if you want the VAT exemption
- Mark invoices as "Kleinunternehmer gem. §6 Abs 1 Z 27 UStG"
- File an annual tax return (income tax applies regardless of size)