This should included on an invoice in Germany

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After registering as a freelancer & putting a lot of hours, it’s now time to get paid (well done, by the way). For this, you will need to create an invoice that contains all the right information.

This ensures it’s legally valid, avoiding unnecessary back & forth between you & your clients, Steuerberater or Finanzamt.

How to write an invoice in Germany

Feel to leave questions in the comments section if something is unclear. I answer each question personally.

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Bastien – Settle in Berlin

Items to include on a German invoice

In order to be legally compliant in the eyes of the Finanzamt, every invoice you send should include the following information:

  • Your name in full
  • Your tax number (Steuernummer) and, if applicable, your VAT ID (USt ID)
  • Your business address
  • The full name of your client or the person receiving the invoice (in the case of larger agencies or businesses)
  • The address of your client or the person receiving the invoice
  • An invoice number (format is up to you, just make sure each invoice number is consecutive & unique).
  • The date that the invoice was drafted
  • The period or specific date during which the work was carried out
  • A description of the goods or services provided
  • The number, or quantity, of the goods or services provided (this could also be the number of hours worked)
  • The price of the goods or services provided
  • A section detailing the VAT rate applied to the goods or services listed. If VAT isn’t applicable, then the invoice should include a sentence stating why this is the case
  • Invoice amount: the net amount, VAT amount, and gross amount
  • Your bank details or other payment options (such as PayPal or Wise), and instructions on how to pay (if applicable)

There is some other information that you might need to include but that isn’t always necessary. This includes:

  • Discounts you and your client may have agreed on
  • Payment terms – most people choose two weeks or 30 days from the date of the receipt

When you use the Kleinunternehmer Regelung

Small business owners (Kleinunternehmer) are entrepreneurs that do not earn more than 25,000€ per year. Because of this, they do not need to pay VAT and do not have to charge VAT on their invoices. If you are Kleinunternehmer, all of your invoices should include a sentence stating that you are exempt from charging VAT. 

The sentence should look something like this: “In accordance with §19 of the German VAT law, no VAT has been charged on this invoice.” – “Gemäß § 19 UStG wird keine Umsatzsteuer berechnet.”.

When you invoice clients within the EU

When invoicing clients that operate or are based outside of Germany but that are still within a member state of the European Union, you don’t have to charge any VAT on your invoices. This is due to a process known as the reverse charge procedure which states that the recipient of the invoice must pay the VAT charges in their own country, and not the sender. For this to work, your invoices should include the VAT IDs of both you and your client, and you will have to include the following sentence to show that you are implementing the Reverse Charge procedure:

“VAT has not been charged, according to §13b Abs. 5 UStG, subject to reverse charge in the country of receipt.” “Steuerschuldnerschaft des Leistungsempfängers (§13b Abs. 5 UStG)“

When you invoice clients outside of the EU

If the client you’re invoicing is based outside of the EU, such as the USA or South Africa, then reporting VAT is a little different, and depends on the tax treaty that Germany might have with that country. Check out this link for more information on which treaties Germany has with certain countries, otherwise, it’s probably a good thing to double-check with your Steuerberater just to be sure.

German invoice template

Here is a good example of a German invoice template that includes all the right information.

German invoice template example
Click on the picture for a bigger version

E-invoicing is compulsory for B2B businesses

Starting January 2025, Germany will begin implementing mandatory electronic invoicing (e-invoicing) for domestic business-to-business (B2B) transactions (E-Rechnungsverordnung).

Implementation goes in stages:

  • January 2025: All businesses must be capable of receiving e-invoices from their suppliers. Issuing e-invoices is not yet mandatory, but recipients must be prepared to accept them. Paper invoices can still be used with the recipient’s consent.
  • January 2027: Businesses with an annual turnover exceeding €800,000 will be required to issue e-invoices. Smaller businesses may continue using paper invoices with the recipient’s consent until the end of 2027.
  • January 2028: The requirements extends to all businesses for domestic B2B transactions.

Exemptions:

Certain transactions are exempt from the e-invoicing mandate, including:

  • Transactions involving non-business entities (that means b2c transactions with private consumers).
  • Invoices for amounts less than €250.
  • Tickets issued for passenger transport.
  • Specific taxable sales related to immovable property.

Definition of an e-invoice in Germany

An electronic invoice in Germany (elektronische Rechnung) is usually in XRechnung and ZUGFeRD (version 2.0.1 and higher) formats, both compliant with the European standard EN 16931. Hybrid formats, combining structured data with a human-readable component (e.g., PDF with embedded XML), are also ok.

In any case, this stuff a good accounting software does for you automatically.

Invoice for less than €250 (including VAT)

If you’re invoicing for an amount less than €250 (including VAT), then there are fewer requirements with regards to what that invoice should contain. The following information is still mandatory:

  • Your full name
  • Your full business address
  • The invoice date
  • The description of the goods or services provided
  • The number of goods or services provided (or hours worked)
  • Invoice amount: the net amount, VAT amount, and gross amount
  • Tax or VAT exemption if applicable

Good practices when sending invoices in Germany

To make sure that you’re dotting all of your i’s and crossing your t’s, it’s good to keep the following things in mind when invoicing as a freelancer in Germany: 

  • To stay legally compliant, you have to issue an invoice for any service you provide or goods you sell
  • Invoices have to be kept for at least 10 years from the date of issue
  • Invoices can be sent electronically or via the post
  • Invoices should be sent from six months of the date that you provided the goods or services

Generating perfect German invoices with software

Nowadays, you can save tons of time by an invoicing software. Not only does it make sure to always include in the right information in the relevant spot, it also does the rest of the bookkeeping in an automagical way. It’s highly recommended so you can focus on your actual job. You can read this guide on accounting software for freelancers in Germany for more information.

Sending payment reminders

As a freelancer, it’s likely that at some point in your career you’re not going to receive a payment on time. Depending on your situation, this can be less than ideal, so it’s important to know how to follow up and make sure that the money owed to you ends up in your bank account as quickly as possible. 

Once the payment deadline that you included in your invoice has passed, send a follow-up email or letter to inform your client in a friendly tone that the invoice is still outstanding. If you still haven’t received the letter in a few days, send another one. Clients are people, and people make mistakes and forget. If, however, after your courteous reminders you find that you’re still not getting paid, you may have to issue a Mahnung. However, this should be a last-ditch effort, as this would initiate a legal procedure and potentially burn any bridges you have with your client.

German invoice FAQs

What information must be included on an invoice in Germany?

Invoices must contain mandatory fields according to §14 UStG, including invoice number, date, full name and address of both parties, description of goods or services, amount, VAT rate (if applicable), and total amount due.

Can I issue a simple invoice (Kleinbetragsrechnung) for small amounts?

Yes, for invoices under €250, simplified rules apply. You still need your name, address, date, description of goods or services, and total amount, but you can omit detailed VAT information.

Do I need to charge VAT, and when am I exempt?

You must charge VAT unless you qualify as a Kleinunternehmer (small business) under German law or if the service is exempt. Kleinunternehmer do not add VAT but must state the exemption on the invoice.

When and how should I include my tax number or VAT ID?

Include your Steuernummer (tax number) on all invoices. If registered for VAT, also include your Umsatzsteuer-Identifikationsnummer (USt-IdNr). For cross-border EU clients, the VAT ID is required for reverse charge purposes.

How should invoice numbering be structured?

Invoice numbers must be unique and sequential. You can use any system (e.g., numeric, alphanumeric) as long as numbers are consecutive and not repeated.

What are the rules for invoicing international clients?

For EU clients, use the reverse charge mechanism if applicable and include both VAT IDs. For clients outside the EU, VAT is typically not charged, but the invoice should clearly state this.

What are the payment terms and bank details requirements?

Invoices should specify payment deadline, accepted payment methods, bank account details (IBAN/BIC), and any late payment fees. Clear terms reduce misunderstandings and improve cash flow.

Sources & references

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