What a German Rechnung is
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.
Mandatory fields under section 14 UStG
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.
- Sequential invoice number
- A unique, consecutive invoice number (Rechnungsnummer) assigned from a continuous series.
- 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)
Small businesses can use the Kleinunternehmer (small business) regime under section 19 UStG. A Kleinunternehmer whose turnover stays below the legal threshold does not charge VAT on its invoices and does not pay VAT to the tax office. In exchange, the business also cannot deduct input VAT (Vorsteuer) on its own purchases.
If you use this regime, your Rechnung must not show a VAT rate or VAT amount. Instead it has to carry a short note explaining why no VAT is charged - in German this is typically worded: „Gemäß § 19 UStG wird keine Umsatzsteuer berechnet.“ („In accordance with section 19 UStG, no VAT is charged.“). The rest of the mandatory details - your name and address, the customer’s details, your tax number, the issue date, a sequential invoice number, the description and the date of supply - still apply. Leaving the note off is a common Kleinunternehmer mistake, so make sure it is always there.
Sequential invoice numbering (Rechnungsnummer)
Every full Rechnung needs a unique, sequential invoice number (Rechnungsnummer). The number must be drawn from a continuous series so that each invoice can be identified individually and no number is used twice. You may structure the series however suits your business - for example by year, by branch or by customer group - as long as it stays unambiguous and gapless within its logic.
Sequential numbering is not just bureaucratic tidiness: it lets the tax office verify that every supply has been invoiced and accounted for. A generator that assigns the next number automatically removes the risk of duplicate or skipped numbers, which is one of the easier ways to fall foul of the rules.
Keeping your invoices: the 10-year rule (GoBD)
In Germany invoices must be retained for ten years. This applies to invoices you issue and invoices you receive, and the retention period generally runs from the end of the calendar year in which the invoice was issued. The principles for storing this data - keeping records complete, unalterable and readily available for audit - are set out in the German GoBD (the principles for the proper management and storage of books, records and documents in electronic form).
In practice this means you cannot simply delete old invoices. Electronic invoices must be stored in a form that cannot be silently changed, and you must be able to produce them if the Finanzamt asks. Saving a PDF copy of each Rechnung as you issue it, in an organised archive, is the simplest way to stay on the right side of the rule.
Create a compliant German Rechnung free
You do not need accounting software to issue a correct Rechnung. The free generator lays out every field section 14 UStG requires - your name and address, the customer’s details, your Steuernummer or USt-IdNr, the issue date, a sequential invoice number, line descriptions and quantities, the date of supply, and the net amount, VAT rate (19% or 7%) and VAT amount per rate.
If you are a Kleinunternehmer, you can switch VAT off and add the required § 19 UStG note so the document is correct for the small business regime. The result is a clean PDF you can download and archive for the ten-year retention period - produced in your browser, in many languages, with no sign-up and no card.
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?
The Kleinunternehmer rule under section 19 UStG lets small businesses below the legal turnover threshold issue invoices without charging VAT. Such a business pays no VAT to the tax office and cannot deduct input VAT (Vorsteuer). Its invoices show no VAT rate or amount but must carry a note such as "Gemaess section 19 UStG wird keine Umsatzsteuer berechnet".
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?
Yes. A full Rechnung must carry a unique, consecutive invoice number (Rechnungsnummer) drawn from a continuous series, so each invoice can be identified individually and no number is reused. You can structure the series by year or other logic as long as it stays unambiguous.
How long must I keep invoices in Germany?
Invoices must be kept for ten years, both those you issue and those you receive. The period generally runs from the end of the calendar year of issue. The GoBD principles require electronic records to be complete, unalterable and available for audit, so saving and archiving a PDF of each Rechnung is the safest approach.
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.