You do not charge VAT, but you also cannot deduct VAT on your costs. Invoices must include a note that no VAT is charged under this rule.
The turnover limits are based on turnover, not profit. Whether it pays off depends on your clients: private clients profit, business clients usually do not care.
Full guideThe German small business VAT rule for freelancers and foundersRelated terms
General information on German tax law, not advice on your individual case.