VAT Invoice Germany: Requirements, Rates, and How to Issue a Compliant German Invoice

Germany has some of the most precisely defined invoice requirements in the EU. A German VAT invoice isn't just a billing document — it's a legal record that determines whether your client can deduct input VAT. Get it wrong, and your client may face a tax audit issue. Get it right, and invoicing in Germany is straightforward.

This guide covers everything you need to issue a fully compliant German VAT invoice (Umsatzsteuerrechnung), including the mandatory fields under § 14 UStG, applicable tax rates, Kleinunternehmer rules, and how to handle cross-border EU invoicing.

What Is a VAT Invoice in Germany?

In Germany, VAT is called Umsatzsteuer (USt.) or Mehrwertsteuer (MwSt.). These terms are interchangeable in practice. The legal framework for invoicing is set by the Umsatzsteuergesetz (UStG), specifically § 14 UStG, which defines what a valid invoice must contain.

Every VAT-registered business in Germany must issue a compliant invoice for taxable supplies made to other businesses (B2B). Failing to include required fields can prevent the recipient from claiming input VAT (Vorsteuerabzug).

Mandatory Fields for a German VAT Invoice (§ 14 UStG)

A full German VAT invoice (Rechnung) must contain all of the following:

1. Full name and address of the supplier (Leistungserbringer) — your registered business name and address exactly as filed with the Finanzamt
2. Full name and address of the recipient (Leistungsempfänger) — the client's legal name and billing address
3. Tax identification number (Steuernummer) or VAT identification number (Umsatzsteuer-Identifikationsnummer, USt-IdNr.) of the supplier — at least one of these must appear on every invoice
4. Sequential invoice number (fortlaufende Rechnungsnummer) — unique, with no gaps in the sequence. Can include letters (e.g., "RE-2025-047")
5. Invoice issue date (Rechnungsdatum)
6. Date of supply (Leistungsdatum) — the date services were rendered or goods were delivered. If this is the same as the invoice date, many practitioners simply write "Leistungsdatum entspricht Rechnungsdatum" (date of supply equals invoice date)
7. Description of services or goods (Leistungsbeschreibung) — must be specific and clear. "Beratungsleistungen" (consulting) is too vague; "Unternehmensberatung zu Digitalisierungsstrategie, Januar 2025" is acceptable
8. Quantity and unit of measure (Menge und Art) — hours, days, units, or "pauschal" (lump sum)
9. Net amount (Nettobetrag) — the amount before VAT, per line item
10. Applicable VAT rate (Steuersatz) — 19%, 7%, or 0%
11. VAT amount (Steuerbetrag) — the calculated tax amount
12. Gross total (Bruttobetrag) — the final amount including VAT

For invoices below €250 gross (Kleinbetragsrechnung), simplified requirements under § 33 UStDV apply — you do not need to include the recipient's details or a separate line for the net/VAT breakdown.

German VAT Rates

Germany applies two standard VAT rates:

19% — Regelsteuersatz (Standard rate)

Applies to the vast majority of goods and services, including:

• Consulting, professional services, IT services
• Advertising and marketing services
• Software and digital services
• Electronics, clothing, and most retail goods
• Accommodation in hotels and guesthouses

7% — Ermäßigter Steuersatz (Reduced rate)

Applies to:

• Food and non-alcoholic beverages (for takeaway and retail)
• Books, newspapers, and periodicals
• Cultural services (theatre, museum, concert tickets)
• Domestic passenger transport (local public transport)
• Certain agricultural products

0% / Exempt (Steuerfrei)

Exports outside the EU are zero-rated. Intra-EU B2B supplies are zero-rated with reverse charge (see below). Certain services are fully exempt (medical services, banking, insurance).

The Kleinunternehmerregelung: Invoicing Without VAT

Under § 19 UStG, small businesses with annual revenue below €25,000 (gross, previous year) and €100,000 forecast (current year) may qualify for the Kleinunternehmerregelung. From 2025, these thresholds apply.

Under this scheme:

• You do not charge VAT on your invoices
• You cannot deduct input VAT on your purchases
• You must include this mandatory statement: "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet."
• Your clients cannot claim input VAT from your invoices

Note: Kleinunternehmer status is optional below the threshold — you can voluntarily register for VAT if it makes commercial sense (e.g., if you have significant business purchases from which you want to deduct input VAT).

VAT Reverse Charge for EU Cross-Border Invoices

When a German-registered business invoices a VAT-registered business in another EU member state for services:

• The German supplier does not charge German VAT
• The recipient accounts for VAT in their own country (reverse charge)
• The invoice must show both the supplier's and recipient's EU VAT ID numbers
• The invoice must include the note: "Steuerschuldnerschaft des Leistungsempfängers" or in English: "VAT reverse charge — Article 196 EU VAT Directive"

Record Keeping Requirements

German law (§ 147 AO — Abgabenordnung) requires businesses to retain invoices for 10 years. Digital storage is permitted under GoBD (Grundsätze zur ordnungsmäßigen Führung und Aufbewahrung von Büchern) provided:

• Documents are stored in their original format (PDF is acceptable)
• They are tamper-proof and cannot be altered after storage
• They remain readable throughout the retention period
• An audit trail documents any corrections

Creating a Compliant German VAT Invoice

The German invoice template in invoicePrivate includes all mandatory fields under § 14 UStG. Switch the interface language to German to generate a fully German-language invoice with correct formatting (date as DD.MM.YYYY, amounts as 1.234,56 €, VAT shown as Mehrwertsteuer/MwSt.).

For the general EU VAT framework and how Germany fits within it, see our VAT invoice guide and EU invoice requirements.