Article from
Mandatory Information on an Invoice.
Incorrectly issued invoices not only lead to reissuance and payment delays, but it may also result in the inability to reclaim VAT from the tax office. Therefore, it is crucial that all invoices sent and received adhere to the following guidelines.
(English image not yet available)What an Invoice Must Include
These details must be present on a service provider's invoice
1. Name and address of your company
2. Name and address of the recipient
3. A unique invoice number
4. Invoice date, payment terms
3. A unique invoice number
4. Invoice date, payment terms
5. Date or period of service (calendar month is sufficient)
6. Type and scope of the service
7. Net amount
8. Tax rate and tax amount
9. Tax number or VAT identification number of the issuer
These details are also beneficial on the invoice
These details are also beneficial on the invoice
- A payment instruction
- Bank account details for transfers on the invoice
Example part of the footer text.
Reverse Charge & Small Business Regulation
Additional considerations for "Reverse Charge"
- Tax rate and tax amount: 0
- Explanatory note
The reverse charge mechanism shifts the VAT liability in cross-border transactions: instead of the service provider, the client pays the VAT to the tax office. A prerequisite for applying the reverse charge mechanism is that the client also holds a VAT identification number (UID). A corresponding note on the invoice is crucial here – for example, in the footer text (e.g., "VAT liability of the service recipient").
Additional considerations for the Small Business Regulation (Germany)
- Tax rate and tax amount: 0
- Note on the small business regulation
If you fall under the small business regulation (especially sole traders, freelancers, or partnerships) and apply it, you must not charge VAT, as you would otherwise have to remit it to the tax office. Additionally, the following note should be included on the invoice: "The invoice amount shown does not include VAT in accordance with § 19 Abs. 1 UStG."
Small businesses also need a tax number or VAT identification number, which must be included on their invoice.
Links to related topics
When project service providers issue invoices: Uniform VAT for main and ancillary services.
Small businesses also need a tax number or VAT identification number, which must be included on their invoice.
Links to related topics
When project service providers issue invoices: Uniform VAT for main and ancillary services.
