English
"Kleingewerbe" in Austria — The Myth
Clarification
Verified: April 2026
There is NO "Kleingewerbe" in Austrian law!
The term does not exist in the Gewerbeordnung (Trade Act).
It is commonly confused with the Kleinunternehmerregelung (small business
tax exemption), which is a tax concept — not a trade type.
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 €22,000/year for tax 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: €22,000 net revenue per year
- Effect: No VAT (Umsatzsteuer) charged or collected
- 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
What You Actually Need To Do
- Register a normal trade (free or regulated) — see our guide
- Stay below €22,000/year if you want the tax exemption
- Mark invoices as "Kleinunternehmer gem. §6 Abs 1 Z 27 UStG"
- File an annual tax return (income tax applies regardless of size)
Important: Social insurance always applies!
Even below €22,000, you must register with SVS (social insurance for self-employed)
and pay contributions. The Kleinunternehmerregelung only exempts you from VAT —
not from social insurance or income tax.
Related Guides
General guidance only, not legal or tax advice. Last verified: April 2026.
Deutsche Version →