Summary
An invoice in Germany must include specific elements to be legally valid. You need your full name and address, the recipient’s name and address, a unique and consecutive invoice number, the invoice issue date, and a clear description of the goods or services provided. For each line item you must show quantity, unit price and the net total. If you are registered for VAT, you must declare the applicable VAT rate. Your bank details for payment must be included, and you must keep all copies for the required retention period.
Contents
Intro: Mandatory contents
Before diving into the specifics, let’s cover the basics of an invoice and why it’s crucial for your business. An invoice is a document that details a transaction between a seller and a buyer. It includes essential information of a purchase such as the products or services provided, their costs, payment terms, and more.
In Germany, specific information is required on every invoice to make it legally valid. Here are the mandatory contents:
- Your full name and address
- The recipient’s full name and address
- Unique invoice number
- Invoice date
- Description of the products or services provided
- Quantity and unit price of each item
- Total amount to be paid
- VAT, if applicable
- Bank details for payment
VAT rate in Germany
Most goods and services in Germany are subject to value-added tax—also known as Umsatzsteuer. The standard rate is 19%, and a reduced rate of 7% applies to specific items.
📌 You must include VAT on your invoices unless your business is making use of the small business regulation. If so, you must always indicate that on every invoice issued.
Create an invoice template
Now that you know what information to include, it’s time to create your invoice.
Download our free template here that incorporates all the best practice in this guide.
To simplify the process, you can use invoicing software or templates available online. Just input the required information accurately and clearly.
Sending invoices
Once your invoice is ready, please send it to your customer promptly. You can do this via email or post depending on your preference and the customer’s requirements. Don’t forget to follow up on the payment if it’s not made by the due date.
Record keeping
It’s essential to keep records of all your invoices for tax purposes. In Germany, businesses must retain records for at least ten years, so make sure you establish a filing system to you store them securely.
Conclusion
Issuing a correct invoice from your first business sale ensures compliance and avoids questions from the tax office. Use the checklist: include your full details, a unique invoice number, the issue date, itemised description of services or goods, and the correct VAT treatment. If you qualify under the small business rule, state this clearly instead of charging VAT. Save the invoice securely for the full retention period and consider using invoicing software to reduce errors. This approach lays a strong foundation for your financial accounting from day one.
