Country Guide

How to invoice in Germany

Germany has strict invoicing rules under UStG §14. Missing a single required field can void your right to claim VAT deductions. This guide covers everything you need to get it right.

Why German invoicing rules matter

Germany takes invoice compliance seriously. The Umsatzsteuergesetz (UStG) defines exactly what an invoice must contain. If your invoice is incomplete, your client cannot deduct the VAT, and the tax office can reject your filings. For cross-border B2B transactions, the rules get even more specific. Getting it right from the start saves you correction rounds, delayed payments, and potential audits.

Key tax and invoicing facts

VAT rates

Standard rate is 19%. Reduced rate of 7% applies to food, books, public transport, and cultural events.

Tax identification

Businesses need either a Steuernummer (local tax number) or USt-IdNr. (EU VAT ID). For cross-border EU sales, the USt-IdNr. is mandatory.

E-invoicing mandate

From January 2025, all B2B businesses must be able to receive e-invoices. Sending e-invoices becomes mandatory for larger businesses first, with full rollout by 2028.

Kleinunternehmer rule

Small businesses with revenue under €22,000/year can opt for the Kleinunternehmerregelung (§19 UStG). No VAT is charged, but it must be stated on the invoice.

Common payment methods

Bank transfer (Überweisung) dominates B2B invoicing. SEPA direct debit is common for recurring payments. PayPal and credit cards are used mainly in B2C.

Currency

Euro (EUR). Invoices to German businesses should be issued in EUR. Foreign currency invoices are allowed but the VAT amount must be converted to EUR.

Required invoice fields in Germany

Full name and address of the seller
Full name and address of the buyer
Your tax number (Steuernummer) or VAT ID (USt-IdNr.)
A unique, sequential invoice number
Invoice issue date
Delivery or service date (even if same as invoice date)
Description of each item or service
Quantity and unit price (net) per line item
Applicable VAT rate per line item (19% or 7%)
Net amount, VAT amount, and gross total
Any applicable VAT exemption reference (e.g. §19 UStG for small businesses)
Payment terms and bank details (IBAN, BIC)

VAT rates in Germany

See the current VAT rates, reduced rates, and registration thresholds for Germany.

View VAT rates →

Invoicing guides for neighboring countries

Austria

Switzerland

Netherlands

Belgium

France

Poland

Czech Republic

Denmark

Questions

Do I need to register for VAT in Germany?

If your annual revenue exceeds €22,000, you must register and charge VAT. Below that threshold, you can use the Kleinunternehmerregelung. Foreign businesses selling to German consumers may also need to register depending on the transaction type.

What e-invoice formats does Germany accept?

Germany accepts ZUGFeRD (PDF with embedded XML) and XRechnung (pure XML). XRechnung is mandatory for public sector invoices. For B2B, both formats are accepted under the 2025 e-invoicing rules.

Can I invoice in English to a German company?

Yes. There is no legal requirement to invoice in German. However, the tax office may request a translation during an audit. Including both languages or using clear, standard terms helps avoid issues.

What is the reverse charge mechanism in Germany?

For cross-border B2B services within the EU, the reverse charge shifts VAT liability to the buyer. Your invoice must not include VAT and must reference §13b UStG. Both parties need valid USt-IdNr. numbers.

How long must I keep invoices in Germany?

10 years. Both issued and received invoices must be stored for 10 years from the end of the calendar year in which they were issued. Digital storage is permitted if the format remains readable.

One price. No surprises.

Pay as you go

$0.30

per invoice

First invoice free
All features included
No subscription
E-invoicing built in
150+ currencies
AI PDF import

Get Started

Free. No credit card needed.