VAT exemption up to the turnover limit, with no input-tax deduction, relevant for Werkvertrag and sole proprietors.
Definition
The small-business VAT scheme (§ 6 Abs 1 Z 27 UStG) exempts businesses with gross annual turnover up to € 55.000 (2026) from VAT. Those using it charge no VAT but in return may not deduct input tax. Opting into regular taxation is possible.
Why it matters for fees
For a Werkvertrag or as a sole proprietor the limit decides whether 20 % VAT is added to the fee. For a VAT-registered client, though, VAT is a pass-through, their real cost stays the net fee.