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Invoicing from Germany

German VAT (Umsatzsteuer) guide for service businesses

19%

Standard Rate

7%

Reduced Rate

DE

VAT Prefix

USt

Local Name

VAT Registration in Germany

In Germany, VAT is called Umsatzsteuer (USt) or sometimes Mehrwertsteuer (MwSt). You register for VAT with your local Finanzamt (tax office).

Kleinunternehmerregelung

Germany offers the small business exemption for businesses with revenue not exceeding €25,000 in the previous year AND not exceeding €100,000 in the current year.

Under this scheme, you don't charge VAT but must include the note: "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet."

E-Invoicing Mandate

Germany is implementing mandatory B2B e-invoicing. From January 2025, all businesses must be able to receive e-invoices. Sending obligations are phased in: 2027 for businesses with turnover exceeding €800,000, 2028 for all others. Invoices must use structured formats (XRechnung, ZUGFeRD, or EN 16931-compliant).

Cross-Border SME Scheme (Directive 2020/285)

Since January 2025, small businesses established in other EU Member States can apply for VAT exemption in Germany, provided their EU-wide annual turnover does not exceed €100,000 and they meet Germany's local threshold. Registration is via a single prior notification in the Member State of establishment.

VAT Rates

Rate type	Percentage
Standard	19%
Reduced	7%

For the full list of reduced rate categories, see the European Commission VAT rates reference.

Invoice Requirements (Pflichtangaben)

German invoices (Rechnungen) have strict requirements:

Your details

1 Full business name and address

2 Steuernummer OR USt-IdNr.

Client details

3 Client's full name and address

4 Client VAT number (if EU B2B)

Invoice details

5 Invoice date (Rechnungsdatum)

6 Invoice number (Rechnungsnummer)

7 Service date (Leistungsdatum)

8 Description of services

Amounts

9 Net amount (Nettobetrag)

10 VAT rate and amount

11 Total amount including VAT

Important: Leistungsdatum

German invoices must always include the service date (Leistungsdatum), even if it's the same as the invoice date. Missing this is a common mistake that can cause problems with the Finanzamt.

Invoicing clients in Germany regularly?

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Cross-Border Invoicing

To EU Businesses (B2B)

When invoicing a VAT-registered business in another EU country, apply the reverse charge. Invoice without VAT — the buyer accounts for VAT in their country.

Required invoice note

"Steuerschuldnerschaft des Leistungsempfängers"

Include both your USt-IdNr. and the client's VAT number.

To EU Consumers (B2C)

For most services to EU consumers, charge German VAT (19%). For digital services, OSS rules may apply.

Outside the EU (Drittland)

Services to clients outside the EU are tax-free. Invoice without VAT.

Required invoice note

"Nicht steuerbare Leistung gemäß § 3a UStG"

How Invoxo handles this

Invoxo validates EU VAT numbers via VIES automatically when you add a client. Based on the result, it applies the correct treatment—reverse charge for valid EU business clients, standard German VAT for domestic sales. All Pflichtangaben are included on every invoice.

Learn more about reverse charge →

USt-IdNr. Format

German VAT numbers follow the format: DE + 9 digits.

Example

DE123456789

Note: The USt-IdNr. is different from your Steuernummer. The USt-IdNr. is used for EU transactions, while the Steuernummer is for domestic tax matters.

Common questions

What is the difference between Steuernummer and USt-IdNr.? ⌄

The Steuernummer is for domestic tax purposes and dealings with your local Finanzamt. The USt-IdNr. (VAT ID) is for EU cross-border transactions and VIES validation. You need both if you trade within the EU.

Do I need to charge VAT as a Kleinunternehmer? ⌄

No. Under the Kleinunternehmerregelung, you don't charge VAT but must include the exemption note on invoices. You also cannot reclaim input VAT on purchases.

What is the Leistungsdatum and why is it required? ⌄

The Leistungsdatum (service date) indicates when the service was performed. German law requires this on every invoice, even if it matches the invoice date. Missing it can cause issues with the Finanzamt.

When do I need to use XRechnung? ⌄

XRechnung is currently required for invoices to German public sector entities. From 2027-2028, structured e-invoices (XRechnung, ZUGFeRD, or EN 16931-compliant) will be mandatory for all B2B transactions.

Disclaimer: This guide covers common scenarios for service businesses invoicing from Germany. For complex situations, confirm requirements with your Steuerberater.