How to Invoice a Client in Germany

A complete guide to Umsatzsteuer (VAT)-compliant invoicing

A German invoice (Rechnung) must carry the Pflichtangaben listed in Section 14(4) UStG: your full name and address and the recipient's, your Steuernummer or USt-IdNr., the invoice date, a unique sequential Rechnungsnummer, a description of the goods or services, the quantity, the date of supply (Leistungsdatum), the net amount, the VAT rate (19% standard or 7% reduced), the VAT amount and the gross total. Retain every invoice for ten years in GoBD-compliant form.

Invoicing in Germany requires compliance with local Umsatzsteuer (VAT) regulations and specific formatting standards. Whether you are a freelancer, small business owner, or agency, this guide covers everything you need to create professional, legally compliant invoices in Germany using EUR (Euro).

Legal Requirements for Germany Invoices

✓Obtain and display your Umsatzsteuer-Identifikationsnummer (USt-IdNr.) on all invoices involving intra-EU transactions. For domestic invoices, either the USt-IdNr. or your Steuernummer (tax number) issued by your local Finanzamt must be shown.
✓Include all Pflichtangaben (mandatory invoice fields) as specified in Section 14(4) UStG: your full name and address, the recipient's full name and address, your tax number or USt-IdNr., the invoice date, a unique sequential invoice number (Rechnungsnummer), a description of the goods or services, the quantity, the date of supply, the net amount, the applicable tax rate, the VAT amount, and the gross total.
✓Apply the Kleinunternehmerregelung (small business exemption) under Section 19 UStG if your gross revenue was below EUR 22,000 in the previous calendar year and is not expected to exceed EUR 50,000 in the current year. Under this exemption, you do not charge VAT but must include a reference to Section 19 UStG on every invoice.
✓Comply with GoBD (Grundsaetze zur ordnungsmaessigen Fuehrung und Aufbewahrung von Buechern, Aufzeichnungen und Unterlagen in elektronischer Form sowie zum Datenzugriff) requirements for digital record-keeping, ensuring all invoices are stored in an unalterable, traceable, and machine-readable format.
✓Apply the Reverse Charge mechanism (Steuerschuldnerschaft des Leistungsempfaengers) for B2B services to EU recipients, including the mandatory notation referencing Section 13b UStG on the invoice.
✓Issue Gutschriften (credit notes) when correcting previously issued invoices, clearly referencing the original Rechnungsnummer and stating the reason for the correction. Under German tax law, a Gutschrift can also refer to a self-billed invoice issued by the recipient.
✓Retain all invoices (both issued and received) for a minimum of ten years from the end of the calendar year in which the invoice was issued, as required by Section 14b UStG and the Abgabenordnung (AO).

Step-by-Step: Create an Invoice for Germany

Follow these steps to create a compliant Germany invoice with proper Umsatzsteuer (VAT) handling.

Estimated time: About 10 minutes

1
Register with Your Local Finanzamt
Register your business with the local Finanzamt (tax office) to receive your Steuernummer. If you conduct intra-EU trade, apply for a USt-IdNr. through the Bundeszentralamt fuer Steuern (BZSt). The USt-IdNr. follows the format DE followed by 9 digits (e.g., DE123456789).
2
Determine Your VAT Status
Decide whether to use the Kleinunternehmerregelung (small business exemption) or to charge VAT normally. If your previous year's gross revenue was below EUR 22,000 and current year revenue is not expected to exceed EUR 50,000, you may opt for the exemption and not charge VAT. Otherwise, you must charge 19% standard or 7% reduced rate.
3
Set Up Invoice Numbering
Configure a unique, sequential Rechnungsnummer system. German tax law requires each invoice to have a unique number that allows clear identification. You may use one or more number series (e.g., by year, client, or project), but each number must be unique and gaps should be minimized.
4
Enter Your Business and Client Details
Provide your full legal business name, complete address, and Steuernummer or USt-IdNr. Enter the recipient's full legal name and complete address. For B2B intra-EU transactions, include the recipient's USt-IdNr. and verify it through the VIES system.
5
Add Line Items with Correct VAT Rates
Create line items with detailed descriptions, quantities, unit prices, and the applicable VAT rate. The standard rate is 19% for most goods and services. The reduced rate of 7% applies to food, books, newspapers, public transport, hotel accommodation, and cultural events, among others.
6
Include the Date of Supply (Leistungsdatum)
Specify the date of supply or performance (Leistungsdatum or Lieferdatum), which may differ from the invoice date. If the supply date is the same as the invoice date, you may state 'Rechnungsdatum entspricht Leistungsdatum.' This is a mandatory field under Section 14(4) UStG.
7
Generate a GoBD-Compliant PDF Invoice
Create a PDF invoice containing all Pflichtangaben. If you use the Kleinunternehmerregelung, include the statement: 'Gemaess Section 19 UStG wird keine Umsatzsteuer berechnet' (No VAT is charged pursuant to Section 19 UStG). For reverse charge supplies, note: 'Steuerschuldnerschaft des Leistungsempfaengers gemaess Section 13b UStG.'
8
Archive and File Your VAT Return
Store the invoice in a GoBD-compliant format for at least ten years. File your Umsatzsteuer-Voranmeldung (preliminary VAT return) monthly or quarterly through ELSTER (Elektronische Steuererklaerung), the mandatory electronic filing system. Monthly filing is required if your prior-year VAT liability exceeded EUR 7,500; quarterly filing applies if it was between EUR 1,000 and EUR 7,500.

Tips for Invoicing in Germany

Carefully evaluate whether the Kleinunternehmerregelung benefits your business. While it simplifies invoicing by removing VAT obligations, it also means you cannot claim Vorsteuerabzug (input tax deductions) on your business expenses. If your clients are primarily VAT-registered businesses, opting into regular VAT may be more advantageous.
GoBD compliance is mandatory for all businesses in Germany, regardless of size. Ensure your invoicing software stores records in an unalterable format with a complete audit trail. The Finanzamt can request a digital export of your records during an audit (GDPdU/GoBD data access), and non-compliance can lead to estimated tax assessments.
Always include the Leistungsdatum (date of supply) on your invoices, even when it matches the invoice date. Missing this field is one of the most common reasons the Finanzamt rejects invoices during audits, which can result in the recipient losing their Vorsteuerabzug entitlement.
For intra-EU B2B services, the Reverse Charge mechanism shifts the VAT liability to the recipient. You must still report these transactions in your Zusammenfassende Meldung (EC Sales List), which is filed monthly or quarterly with the BZSt.
Pay attention to the distinction between a Gutschrift as a credit note (correcting a previous invoice) and a Gutschrift as a self-billed invoice (Gutschriftverfahren). Since 2013, a Gutschrift on an invoice specifically refers to a self-billed invoice under Section 14(4) UStG. For corrections, use the term 'Korrekturrechnung' or 'Stornorechnung' to avoid confusion.

Germany Invoicing FAQ

What is the Kleinunternehmerregelung and who qualifies?

The Kleinunternehmerregelung (small business exemption) under Section 19 UStG allows businesses with gross revenue below EUR 22,000 in the previous calendar year (and not expected to exceed EUR 50,000 in the current year) to opt out of charging VAT. Qualifying businesses do not add VAT to their invoices and do not file periodic VAT returns, but they also cannot claim input tax deductions (Vorsteuerabzug) on their own purchases. Every invoice must include a reference to Section 19 UStG explaining why no VAT is charged.

What are the Pflichtangaben (mandatory fields) on a German invoice?

Under Section 14(4) UStG, a German invoice must include: the full name and address of both the supplier and the recipient; the supplier's Steuernummer or USt-IdNr.; the invoice date; a unique sequential Rechnungsnummer; a clear description of the goods or services supplied; the quantity or scope of the supply; the date of supply (Leistungsdatum); the net amount; the applicable VAT rate (19% or 7%); the VAT amount in euros; and the gross total. For invoices under EUR 250, a simplified invoice (Kleinbetragsrechnung) with fewer required fields is permitted.

What is GoBD and how does it affect my invoicing?

GoBD (Grundsaetze zur ordnungsmaessigen Fuehrung und Aufbewahrung von Buechern, Aufzeichnungen und Unterlagen in elektronischer Form sowie zum Datenzugriff) is a set of principles issued by the German Federal Ministry of Finance governing digital record-keeping. It requires all business records, including invoices, to be stored in an unalterable, traceable, and machine-readable format. You must maintain a procedural documentation (Verfahrensdokumentation) describing how records are created, processed, and archived. The Finanzamt can demand digital access to your records during audits.

How does the Reverse Charge mechanism work for German businesses?

When a German business provides B2B services to a VAT-registered recipient in another EU member state, the Reverse Charge mechanism under Section 13b UStG shifts the VAT liability to the recipient. The supplier issues an invoice without VAT and includes the notation 'Steuerschuldnerschaft des Leistungsempfaengers' along with a reference to Section 13b UStG. The transaction must be reported in the Zusammenfassende Meldung (EC Sales List). Reverse Charge also applies to certain domestic transactions, such as construction services and metal supplies.

How long must I retain invoices in Germany?

Under Section 14b UStG and the Abgabenordnung, you must retain all invoices (both issued and received) for a minimum of ten years from the end of the calendar year in which the invoice was issued. This applies to both paper and electronic invoices. The retention must comply with GoBD requirements, meaning electronic invoices must be stored in their original digital format and must not be altered. Paper invoices that are digitized must still meet GoBD standards for the digital copy to be considered legally valid.