Educational guide
How to Invoice in Germany
§14 UStG sets invoice minimums; B2B e-invoicing rules are tightening—stay close to primary sources.
This page is for general education only. Tax law, e-invoicing rules, and invoice mandates vary by sector, threshold, and updates from authorities. Confirm requirements with a qualified accountant, lawyer, or government guidance for your situation.
Invoicing in Germany follows strict legal requirements defined under §14 UStG (Umsatzsteuergesetz). Every proper VAT invoice (Rechnung) must contain the supplier's and customer's full names and addresses, the seller's Steuernummer or USt-IdNr., a unique sequential invoice number, the invoice date, a clear description of the goods or services delivered, net amounts, the applicable VAT rate (19% standard or 7% reduced), and the calculated VAT amount. If any mandatory element is missing, the buyer loses the right to deduct input VAT (Vorsteuerabzug), which makes compliance critical for B2B transactions.
Germany is implementing mandatory B2B e-invoicing under the Wachstumschancengesetz (Growth Opportunities Act). Since January 2025, all businesses must be able to receive structured electronic invoices in formats like XRechnung or ZUGFeRD/Factur-X. Sending mandates are phasing in based on company size, with full coverage expected by 2028. Public sector invoicing already requires XRechnung through the ZRE or OZG-RE portals.
German business culture places high value on accuracy, punctuality, and documentation. Skonto (early payment discounts, typically 2% for payment within 10 days) is a widespread B2B practice and should be clearly stated on invoices. Payment by SEPA-Überweisung is standard, and all invoices must be archived for 10 years in compliance with GoBD (Grundsätze zur ordnungsmäßigen Führung und Aufbewahrung von Büchern) principles, which govern the integrity and traceability of electronic business records. Using invoicing software that generates GoBD-compliant records with proper audit trails significantly reduces risk during Betriebsprüfungen (tax audits).
Invoice checklist: common fields in Germany
What buyers, auditors, and tax authorities often expect to see on a commercial invoice. “Required” reflects typical compliance expectations for registered businesses—not every sole trader scenario.
Seller Name & Address
Usually requiredFull legal name and address as registered with the Finanzamt. For companies, include the legal form (GmbH, AG, UG, etc.) and the commercial register entry (Handelsregisternummer).
Buyer Name & Address
Usually requiredRequired for proper VAT invoices to enable the buyer's input tax deduction (Vorsteuerabzug). The name and address must match the buyer's official business registration.
Invoice Number
Usually requiredFortlaufende Nummer — a unique sequential number that cannot be reused or duplicated. Multiple numbering series are permitted provided each series is independently sequential and clearly labeled.
Invoice Date
Usually requiredAusstellungsdatum (issue date) is mandatory. The Leistungsdatum (delivery or service completion date) must also be stated separately if it differs from the invoice date.
Steuernummer or USt-IdNr.
Usually requiredEither the German tax number (Steuernummer) or the EU VAT ID (USt-IdNr.) must appear. For intra-EU reverse charge transactions, both parties' VAT IDs are required on the invoice.
Tax Breakdown
Usually requiredNet amount (Nettobetrag), VAT rate (19% or 7%), and VAT amount (Umsatzsteuerbetrag) per line or group. Exemptions must cite the specific legal basis under UStG or EU VAT Directive.
Currency
Usually requiredEUR is the standard domestic currency. Foreign currency invoices are permitted but require ECB or contractually agreed conversion rate documentation for VAT reporting purposes.
Payment Terms
Often optionalZahlungsziel of 14 or 30 days net is typical in Germany. Skonto (e.g., 2% discount for payment within 10 days) is a common B2B practice and should be clearly stated.
Description of Goods or Services
Usually requiredA precise, detailed description (Art und Umfang der Leistung) is mandatory. Vague descriptions like 'consulting services' are insufficient and may invalidate the buyer's VAT deduction claim.
Tax and regulatory themes in Germany
Umsatzsteuer (VAT)
Standard rate 19%, reduced rate 7% for food, books, public transport, and cultural events. Kleinunternehmer (small businesses under €22,000 revenue) may opt out of charging VAT entirely.
Reverse Charge
Applies to intra-EU B2B services and specific domestic sectors (construction subcontracting, scrap metal). Invoice must state 'Steuerschuldnerschaft des Leistungsempfängers.'
E-Invoicing (XRechnung / ZUGFeRD)
Public sector already requires XRechnung. Domestic B2B e-invoicing reception is mandatory from 2025; sending mandates phase in based on company size through 2028.
Popular payment methods in Germany
Methods commonly used for B2B and freelance payments. Availability depends on banks, platforms, and contract terms.
- SEPA-Überweisung (bank transfer with IBAN)
- SEPA-Lastschrift (direct debit)
- Kreditkarte (Visa, Mastercard)
- PayPal
- giropay / Klarna
Business and cultural tips for Germany
- German AP departments are meticulous — include a Verwendungszweck (payment reference) and your IBAN on every invoice to avoid delays.
- Skonto (e.g., 2% discount if paid within 10 days) is a widespread B2B practice. State it clearly on the invoice.
- Enterprise clients often require Bestellnummer (PO number) and Kostenstelle (cost center) references before approving payment.
- If you're a Kleinunternehmer, state the §19 UStG exemption clearly so clients understand they cannot deduct VAT from your invoice.
- Always include the Leistungsdatum (service or delivery date) even if it matches the invoice date — its absence is a common audit finding.
- German businesses expect Rechnungen to be precise and error-free. A single wrong field can delay payment by weeks while corrections are processed.
- Prepare for the e-invoicing mandate by testing XRechnung or ZUGFeRD format generation in your invoicing software well before the deadline.
- Archive all sent and received invoices in a GoBD-compliant system for 10 years — modifications must be logged and the original version preserved.
Invoicing in Germany: common questions
Invoicing guides for other countries
Prefer a product overview for this market? See Billed for Germany.
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