English
"Kleingewerbe" in Austria — The Myth
Clarification
VAT threshold verified against USP + WKO: August 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 €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
Be careful with older figures online
The threshold changed on 1 January 2025 — from €35,000
net to €55,000 gross. A great deal of material still quotes
the old number, often in its converted form “€42,000”, and some
English-language pages still carry figures from years before that. Planning around
an outdated limit means registering for VAT earlier than you need to. For 2026 the
€55,000 limit is unchanged.
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)
Important: Social insurance always applies!
Even below €55,000, 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. VAT threshold and tolerance rule
verified against USP
and WKO in August 2026.
Deutsche Version →