Writing quotes as a VAT-exempt small business: structure, mandatory details and checklist
This guide covers German law and practice. A UK edition is in preparation.
If you write a quote as a VAT-exempt small business (Kleinunternehmer under § 19 UStG), you list the service with quantity, unit and price per line item and show no VAT. Instead, the statutory note for small businesses under § 19 UStG belongs on the quote; you also need the usual quote details such as full company name with legal form, address, quote number, date, validity period and total.
Writing a quote as a small business
At its core, a quote from a small business is no different in its trade structure. The work has to be described clearly, the quantities have to be right, the units have to be traceable and every line item needs a price.
The important difference is VAT. Small businesses under § 19 UStG show no VAT. Instead they enter the statutory note.
So do not write just a final price on the quote. A usable quote shows which service is meant, which quantity was assumed, which unit applies and which price is charged per line item.
Writing a quote as a small business: mandatory details
Certain details have to be checked on a trade quote. They include the full company name with legal form, the address, tax number or VAT ID, quote number, date and validity period.
The service part includes description, quantity, unit and price per line item. Net, VAT and total also have to be shown separately. For small businesses under § 19 UStG no VAT is shown; the statutory note takes its place.
For trades requiring registration under Annex A of the German Crafts Code (Handwerksordnung), the responsible Chamber of Crafts is added to the quote.
| Area | What belongs on the quote | Note for small businesses |
|---|---|---|
| Business | Full company name with legal form, address, tax number or VAT ID | Do not abbreviate or leave out these details |
| Quote | Quote number, date, validity period | Check the unique reference before sending |
| Service | Description of the service with quantity, unit and price per line item | Write every line item so the work is recognisable |
| Amounts | Net, VAT and total shown separately | Show no VAT, enter the statutory note under § 19 UStG |
| Trade | For trades requiring registration under Annex A, additionally the responsible Chamber of Crafts | Only relevant if the trade falls under it |
You will find more on the general details in the guide Mandatory details on a trade quote.
Writing a quote as a small business: VAT and the note
The most common critical point is how VAT is handled. If you are a small business under § 19 UStG, you show no VAT.
So the quote should not contain a VAT line. Instead it needs the statutory note. The exact wording should fit your business template and be checked before use.
The internal consistency of the quote matters. If no VAT is shown in one place, there should not accidentally be a VAT line, a VAT amount or a misleading total somewhere else.
Writing a quote as a small business: structure
Start with the business details. Then come quote number, date and validity period. Only then the line items.
Every line item should consist of a clear description of the service. Add quantity, unit and price. Avoid lumped-together texts where it is unclear later which work was included.
At the end come the amounts. For small businesses no VAT belongs there. The statutory note under § 19 UStG has to be on the quote.
Writing a quote as a small business: checklist
Check the quote point by point before sending. With templates in particular it pays to look at old tax lines and old text blocks.
- Full company name with legal form entered
- Address entered
- Tax number or VAT ID entered
- Quote number assigned
- Date entered
- Validity period entered
- Description of the service per line item worded clearly
- Quantity per line item entered
- Unit per line item entered
- Price per line item entered
- Total checked
- No VAT shown where § 19 UStG is used
- Statutory note for small businesses entered
- Responsible Chamber of Crafts entered where a trade requiring registration under Annex A of the German Crafts Code is affected
Writing a quote as a small business: typical mistakes
Leftover VAT: old quote templates often still contain tax lines. So check before sending that no VAT is actually shown if you work as a small business under § 19 UStG.
Unclear line items: a service without quantity, unit or price per line item is hard to check. The customer must be able to see which work is offered at which price.
Missing validity period: the validity period is one of the mandatory details. Do not leave that field open.
Missing Chamber of Crafts: for trades requiring registration under Annex A of the German Crafts Code, the responsible Chamber of Crafts has to be stated as well.
Faster with Handschlag
The Handschlag app creates a quote by voice, right on site: services, quantities and prices are spoken and become line items with quantity, unit and price. Before the PDF export the app checks the mandatory details and reports specifically if something is missing.
Sources
- https://handschlag.dev/llms.txt
- https://handschlag.dev/en/guide/mandatory-details-trade-quotes