How to Create Professional Invoices in Germany: Legal Requirements

Creating professional invoices that meet German legal requirements is essential for freelancers. This guide covers everything you need to know to create compliant invoices and maintain proper records.

Legal Requirements for Invoices in Germany

German tax law (Umsatzsteuergesetz) specifies exactly what must be included on every invoice. Missing information can result in your invoice being rejected for tax purposes.

Mandatory Information

Every invoice must include:

1. Your business information
   • Full name or company name
   • Complete address (street, city, postal code)
   • Tax number (Steuernummer)
   • VAT ID (Umsatzsteuer-ID), if registered for VAT
2. Client information
   • Client’s name
   • Client’s address
   • For B2B invoices: Client’s VAT ID (if applicable)
3. Invoice details
   • Unique invoice number
   • Invoice date
   • Service date or period (when service was provided)
   • Payment due date (optional but recommended)
4. Service description
   • Clear description of services provided
   • Quantity (if applicable)
   • Unit price
   • Total amount per line item
5. Financial information
   • Net amount (if VAT applies)
   • VAT rate (19% or 7%, if applicable)
   • VAT amount (if applicable)
   • Total amount including VAT (or total if no VAT)
6. Payment information
   • Payment method
   • Bank account details (IBAN and BIC)
   • Payment terms (e.g., “Payment due within 14 days”)

Invoice Numbering

Requirements

• Sequential numbering: Invoice numbers must be consecutive
• No gaps: You cannot skip numbers
• Unique: Each invoice must have a unique number
• Format: You can use any format (e.g., RE-2024-001, INV-001, 2024/001)

Best Practices

Use a logical system:

• Include year: RE-2024-001, RE-2024-002
• Include month: RE-2024-09-001
• Simple sequential: 001, 002, 003

Avoid:

• Reusing numbers
• Starting over each year (continue sequence)
• Using client names in numbers (privacy concern)

What to Do If You Make a Mistake

If you need to correct an invoice:

• Create a new invoice with a new number
• Reference the original invoice number
• Mark it as “Correction” or “Credit Note”
• Keep both invoices in your records

VAT on Invoices

If Using Kleinunternehmerregelung

Your invoice must state:

• “Kleinunternehmer gemäß §19 UStG”
• No VAT amount shown
• Total price is final

Example:

Total: 1,000.00 EUR
Umsatzsteuer: Nicht anwendbar (Kleinunternehmer gemäß §19 UStG)

If Registered for VAT

Your invoice must show:

• Net amount (before VAT)
• VAT rate (19% or 7%)
• VAT amount
• Gross total (including VAT)

Example:

Net amount: 840.34 EUR
VAT (19%): 159.66 EUR
Total: 1,000.00 EUR

Invoice Templates

Essential Elements

A professional invoice template should include:

Header:

• Your logo (optional but professional)
• Business name and address
• Contact information (phone, email)

Invoice Details:

• Invoice number
• Invoice date
• Payment due date
• Client information

Service Details:

• Description of services
• Date or period of service
• Quantity and unit price
• Line totals

Financial Summary:

• Subtotal
• VAT (if applicable)
• Total amount

Footer:

• Payment instructions
• Bank details
• Terms and conditions (optional)
• Thank you message

Using Invoice Software

Professional invoice software like Solobooks:

• Automatically includes all required information
• Generates sequential invoice numbers
• Calculates VAT correctly
• Stores all invoices for record-keeping
• Sends invoices directly to clients

Digital vs. Paper Invoices

Digital Invoices (E-Invoices)

Advantages:

• Faster delivery
• Lower costs
• Easier to store and organize
• Environmentally friendly
• Legally accepted in Germany

Requirements:

• Must be in PDF format (or other standard format)
• Must contain all mandatory information
• Must be readable and printable
• Original must be retained

Paper Invoices

When to use:

• Client specifically requests paper
• Legal requirement in specific industries
• Personal preference

Requirements:

• Same information as digital invoices
• Keep copies for your records
• Store securely for 10 years

Invoice Retention

How Long to Keep Invoices

Legal requirement:

• Keep all invoices for 10 years
• This applies to both sent and received invoices
• Digital storage is acceptable

Storage Best Practices

Organize by:

• Year and month
• Client name
• Invoice number
• Category or project

Storage options:

• Cloud storage (Google Drive, Dropbox)
• Accounting software (Solobooks)
• Physical filing system
• External hard drive backup

Common Invoice Mistakes

Missing Information

Most common mistakes:

• Forgetting tax number
• Missing invoice date
• Incomplete address
• Missing VAT ID (if registered)

Solution:

• Use a checklist
• Use invoice software with templates
• Double-check before sending

Incorrect VAT Calculation

Common errors:

• Calculating 19% incorrectly
• Forgetting to add VAT
• Using wrong VAT rate
• Not showing VAT breakdown

Solution:

• Use accounting software
• Double-check calculations
• Understand VAT rules

Poor Numbering

Problems:

• Skipping numbers
• Reusing numbers
• Inconsistent format

Solution:

• Use sequential numbering
• Track invoice numbers in software
• Never delete invoices

International Invoices

EU Clients

For clients in other EU countries:

• Include your VAT ID
• Include client’s VAT ID
• May need to use reverse charge
• Consult tax advisor for complex cases

Non-EU Clients

For clients outside the EU:

• Usually no VAT charged
• Mark as “Export” or “Zero-rated”
• Keep documentation for tax purposes

Payment Terms

Standard Terms

Common payment terms in Germany:

• “Zahlung innerhalb von 14 Tagen” (Payment within 14 days)
• “Zahlung innerhalb von 30 Tagen” (Payment within 30 days)
• “Zahlung bei Rechnungserhalt” (Payment upon receipt)

Late Payment

Legal rights:

• Can charge late payment interest (9.5% above base rate)
• Can charge reminder fees
• Must clearly state these terms on invoice

Tips for Professional Invoices

Use consistent branding

• Same logo and colors
• Professional design
• Clear, readable fonts

Be clear and specific

• Detailed service descriptions
• Clear pricing
• Obvious payment instructions

Send promptly

• Send invoice immediately after service
• Faster payment typically
• Better cash flow

Follow up

• Send payment reminders if needed
• Be professional and polite
• Maintain good client relationships

How Solobooks Helps

Solobooks makes invoicing easy:

• Professional invoice templates
• Automatic sequential numbering
• VAT calculations
• All legal requirements included
• Digital storage and organization
• Direct sending to clients
• Payment tracking

Need Help?

If you have questions about invoicing:

• Email us at support@solobooks.de
• Chat with us in the app
• Visit our Help Center for more guides

Last updated: September 5, 2025