What is a German Rechnung?
In Germany an invoice is called a Rechnung. It is the document a business issues to record a supply of goods or services and to demand payment. For value-added tax (Umsatzsteuer) purposes, a Rechnung is more than a payment request: it is the document your customer needs to deduct input VAT (Vorsteuer), and it is the document the tax office will inspect. If a required field is missing, the customer can lose the right to that deduction, so getting the content right matters to both sides.
The legal basis is section 14 UStG (Umsatzsteuergesetz), which lists the mandatory particulars every full invoice must show. A second regime, the Kleinunternehmer rule in section 19 UStG, lets small businesses below a turnover threshold issue simpler invoices without charging VAT at all. We cover both below.
What must a German Rechnung include?
A full Rechnung must contain every one of the particulars set out in section 14 UStG. Leave one out and the invoice is technically incorrect, which can cost your customer their input-VAT deduction. Make sure every Rechnung shows the following.
- Full name and address of the supplier
- Your complete business name and address as the issuer of the invoice.
- Full name and address of the customer
- The complete name and address of the recipient of the goods or services.
- Tax number or VAT ID
- Your tax number (Steuernummer) issued by the Finanzamt, or your VAT identification number (Umsatzsteuer-Identifikationsnummer, USt-IdNr).
- Issue date
- The date on which the invoice (Rechnung) was issued.
- Invoice number
- A unique number from one or more numbering series that identifies the invoice.
- Quantity and description
- The quantity and the usual trade description of the goods, or the type and scope of the service.
- Date of supply
- The date the goods were delivered or the service was performed (the Leistungsdatum), if different from the issue date.
- Net amount per VAT rate
- The fee (net amount) broken down by each applicable VAT rate, plus any agreed reduction in advance.
- VAT rate and amount
- The applicable VAT rate (19% or 7%) and the corresponding VAT amount in euros.
- Any exemption note
- Where the supply is tax-exempt or VAT is not charged, a note stating the reason (for example the Kleinunternehmer note).
German VAT rates: 19% and 7%
Germany applies two main VAT (Umsatzsteuer) rates. The standard rate is 19%, which covers most goods and services. A reduced rate of 7% applies to certain categories such as many foods, books, newspapers and some other defined supplies. Whichever rate applies, your Rechnung has to show the net amount, the rate, and the VAT amount separately.
If a single invoice mixes items taxed at different rates, you must show the net amount per VAT rate - one line of figures for the 19% items and another for the 7% items - so the tax due at each rate is clear. Always state the VAT amount in euros, not just the percentage.
The Kleinunternehmer rule (section 19 UStG)
For a Germany-established business, section 19 UStG generally exempts qualifying supplies when total turnover in the previous calendar year did not exceed 25,000 EUR and turnover in the current year does not exceed 100,000 EUR. The current-year ceiling is a hard limit, so verify the treatment of the supply that crosses it. Separate rules cover businesses established elsewhere in the EU.
A qualifying Kleinunternehmer does not show a VAT rate or amount and cannot deduct related input VAT under the ordinary rules. The invoice needs a clear reference to the small-business exemption, for example „Steuerbefreiung für Kleinunternehmer gemäß § 19 UStG“. Other applicable invoice particulars still remain.
| Point | Ordinary taxable invoice | Section 19 exemption |
|---|---|---|
| VAT rate and amount | Shown at the applicable rate | Not shown |
| Tax note | Transaction-specific | Reference to the section 19 exemption |
| Input VAT | Deductible when the normal conditions are met | Generally not deductible under the scheme |
| Other invoice particulars | Apply as required | Still apply as required |
Sequential invoice numbering (Rechnungsnummer)
A full Rechnung needs a unique invoice number from one or more numbering series so the document can be identified unambiguously. The law does not require a simple gapless counter, but the numbering and audit trail must explain voids, corrections and separate series.
In the FreeBillGen guest generator you supply the number yourself. A saved workspace can suggest a number and block a duplicate saved full number, but it cannot reconcile invoices created elsewhere.
Keeping invoices: the 8-year VAT rule
Section 14b UStG now generally requires businesses to keep issued and received invoices for eight years, counted from the end of the calendar year in which the invoice was issued. Other commercial, tax, audit or transaction-specific rules can require related records for longer.
Keep an electronic invoice in its original structured format with authenticity, integrity and readability preserved. A rendered PDF alone is not an adequate substitute for the structured e-invoice data. The records must remain available to the tax authority under the statutory access rules.
Create a professional German Rechnung free
Since January 1, 2025, businesses established in Germany must be able to receive structured e-invoices for covered domestic B2B supplies. Issuers can generally continue using other invoices through the end of 2026; an issuer with no more than 800,000 EUR prior-year turnover has a further transition through the end of 2027. Scope and exceptions remain transaction-specific.
FreeBillGen creates a PDF draft, not a structured invoice that meets section 14 UStG or the German B2B e-invoice transition. Use appropriate software for an in-scope e-invoice. If section 19 applies, verify the exemption and wording before issuing.
German invoice questions
What must a German Rechnung contain?
Under section 14 UStG a full Rechnung must show the supplier's full name and address, the customer's full name and address, your tax number (Steuernummer) or VAT ID (USt-IdNr), the issue date, a sequential invoice number, the quantity and description, the date of supply, the net amount per VAT rate, the VAT rate and amount, and any exemption note where VAT is not charged.
What is the Kleinunternehmer rule?
For a Germany-established business, section 19 generally applies when prior-year turnover did not exceed 25,000 EUR and current-year turnover does not exceed 100,000 EUR. The invoice shows no VAT amount, refers to the exemption and the business generally cannot deduct input VAT under the scheme.
What are the VAT rates in Germany?
Germany has a standard VAT (Umsatzsteuer) rate of 19% that applies to most goods and services, and a reduced rate of 7% for certain categories such as many foods, books and newspapers. An invoice that mixes rates must show the net amount, rate and VAT amount separately for each rate.
Do I need a sequential invoice number?
A full Rechnung needs a unique number from one or more numbering series so it can be identified unambiguously. Preserve a traceable audit trail for voids, corrections and separate series.
How long must I keep invoices in Germany?
Section 14b UStG generally requires issued and received invoices to be kept for eight years from the end of the issue year. Other records may have longer periods. Preserve structured e-invoices in their original electronic form; a PDF rendering alone does not replace them.
Does a Kleinunternehmer charge VAT?
No. A Kleinunternehmer under section 19 UStG does not charge VAT and does not show a VAT rate or amount on the invoice. Instead the Rechnung must include a note stating that no VAT is charged in accordance with section 19 UStG. All the other mandatory details still apply.