Configuration · Article 3.5
Tax regime selection: small-business schemes across the EU
Pick the regime that matches your tax registration — Clozo formats every invoice with the correct legal disclaimer and switches off the VAT line where the law says it stays off.
Small-business VAT regimes are a EU-wide pattern: countries let very-small freelancers operate without charging VAT on their invoices, in exchange for not being able to deduct input VAT on their purchases. Each member state has its own threshold, paperwork, and statutory wording. Clozo supports the seven that cover ~95% of EU freelancers; if your regime isn't listed, leave it on Standard VAT and use a custom invoice note (or contact us — we add regimes when there's demand).
Step by step
Open Settings → Company & tax → Tax regime.
A dropdown appears; entries are filtered by your country (you'll see DE Kleinunternehmer only if your country is DE).
Pick the regime that matches your registration.
If you've actually registered with your tax office for the small-business scheme, pick it. If you haven't (or you're not sure), leave on Standard VAT — it's the safer default and you can always switch later.
Save.
The change applies immediately to new proposals. Already-issued invoices keep their original VAT treatment (frozen at issue time for legal traceability).
Verify on a draft.
Open
/proposals/new, fill any line item, and clickPreview. The VAT line in the totals block should be 0% with the statutory disclaimer printed underneath; if it still shows your country's standard rate, double-check the regime saved correctly.
Why this works this way
The "small-business regime" idea is harmonised across the EU at the directive level (Directive 2006/112/EC Art. 281-294, expanded by Directive (EU) 2020/285 from 2025) but each country implements it with its own threshold, name, and disclaimer wording. Get the wording wrong on the invoice and the document is technically defective — your client may legally refuse it, and a tax-office desk audit may flag it. Clozo solves this by hard-coding the verbatim statutory wording per regime, in the original language and translated into the other five Clozo languages. The translations are reviewed by an EU VAT specialist [D-088c]; we never machine-translate legal text.
The seven regimes shipped today, with thresholds and references: - DE Kleinunternehmer (§19 UStG): up to €25,000 prior-year + €100,000 current-year turnover (thresholds raised 2025-01-01 by JStG 2024). Invoice note: "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet." - AT Kleinunternehmer (§6 Abs. 1 Z 27 UStG AT): up to €55,000 turnover (raised from €35,000 by Abgabenänderungsgesetz 2024, effective 2025-01-01). Note: "Kleinunternehmer gemäß § 6 Abs. 1 Z 27 UStG — Umsatzsteuerbefreiung." - NL KOR (Kleineondernemersregeling, Wet OB 1968 art. 25): up to €20,000 turnover. Note: "Vrijgesteld op grond van de Kleineondernemersregeling (KOR)." - FR auto-entrepreneur (Art. 293 B CGI, "franchise en base"): up to €37,500 for services / €85,000 for sales (2025 thresholds). Note: "TVA non applicable, art. 293 B du CGI." - ES franquicia (Ley 37/1992 transposing Directive 2020/285, effective 2025-01-01): up to €85,000 turnover. Note: "Operación exenta de IVA — régimen de franquicia, Ley 37/1992 conforme a la Directiva (UE) 2020/285." - IT forfettario (Legge 190/2014 art. 1 commi 54-89): up to €85,000 turnover. Note in Italian; SdI exemption code N2.2 is printed separately on the invoice. Invoice note: "Operazione senza applicazione dell'IVA, effettuata ai sensi dell'articolo 1, commi da 54 a 89, Legge 23 dicembre 2014, n. 190 — regime forfettario." - Standard VAT: applies your country's standard rate (DE 19%, FR 20%, NL 21%, ES 21%, IT 22%, AT 20%, PL 23% — and so on). The default for any user not in a small-business regime.
Troubleshooting
Keep reading
Configuration
Profile fundamentals: the six fields every invoice needs
Six fields turn a blank account into one Clozo can build legal invoices from — name, country, language, currency, tax regime, and address. Three are required to send anything at all.
Configuration
Company details for invoices: what shows up on the PDF
The Company & tax card holds the trading identity that prints on every invoice — company name, full postal address, VAT number, and country-specific identifiers like SIRET (FR) or Peppol participant ID.
Working with Clients
EU VAT cheatsheet: a one-page reference
A flat lookup table for the five VAT rules, the three small-business regimes, and the standard rates of every EU member state — bookmark and forget about VAT.
Working with Clients
Client country and VAT logic: how Clozo decides what VAT (if any) to charge
The combination of your country, the client's country, and whether the client has a validated EU VAT number determines which of five VAT rules applies — Clozo computes it automatically.