If you carry out a business activity (Section 2 of the German Turnover Tax Act - UStG), you are entitled to issue invoices (Sections 14, 14a UStG). An obligation to issue an invoice exists, among other things, if you provide a taxable service to another entrepreneur for his business. In this case, you must issue an invoice within 6 months of performing the service.
Necessary invoice information:
The VAT Act stipulates that an invoice must contain certain information (Sections 14, 14a UStG). Among other things, the following are required
- the full name and address of the entrepreneur providing the service and the recipient of the service,
- the tax number or VAT identification number issued to the performing entrepreneur,
- the date of issue,
- a consecutive invoice number,
- the quantity and type (customary description) of the goods supplied or the scope and nature of the other service rendered
- the remuneration,
- the applicable tax rate and
- the amount of tax due on the remuneration or, in the case of a tax exemption, an indication that the supply or other service is subject to a tax exemption.
Small-value invoices
For reasons of simplification, an invoice for a total gross amount of up to €250 (so-called small-value invoice, Section 33 UStDV) does not need to contain all of the information specified in Section 14 (4) UStG. Sufficient are
- the full name and address of the trader making the supply,
- the date of issue,
- the quantity and type (customary designation) of the goods supplied or the scope and type of other performance and
- the remuneration and the amount of tax payable on it in one sum (gross amount),
- as well as the applicable tax rate or, in the case of a tax exemption, an indication that the supply or other service is subject to a tax exemption.
Note
Special features for small business owners
As a small business owner (§ 19 UStG), you are not allowed to show VAT separately in your invoices. In the case of small-value invoices in accordance with § 33 UStDV, the indication of the tax rate is considered to be a separate indication of the tax. If you do not comply with this and nevertheless show the tax separately in invoices or indicate the tax rate in small-value invoices, this will result in you owing the tax shown in accordance with Section 14c (2) UStG. Your invoice recipients cannot deduct the unauthorized tax amounts as input tax.
Electronic dispatch
Invoices can be sent both in paper form and electronically (for example, by e-mail with a pdf attachment). If you wish to send invoices electronically, the recipient must agree to this form of transmission. Please note that electronically transmitted invoices must also be stored electronically in accordance with tax retention principles.
Paper and electronic invoices are treated the same for VAT purposes. Therefore, for example, the mandatory information specified in Section 14 (4) of the German Turnover Tax Act (UStG) must be included in the invoice, regardless of whether the billing is in electronic or paper form.