German invoices and the E-Rechnung: a practical guide for SMEs

A German business invoice needs ten details, an invoice number and the right VAT. Since 2025 every German business must be able to receive e-invoices, and issuing them becomes mandatory in 2027 or 2028. Here is what to do.

Tavalle creates numbered invoices from your orders with the right VAT, and sends them as Peppol e-invoices in the European EN 16931 standard. See it in Tavalle: Invoicing & VAT →

A German VAT invoice has to identify both businesses, describe what was supplied and show how the VAT was calculated. The rules are in § 14 of the VAT law (UStG) and §§ 31 to 34a of its implementing regulation (UStDV). On top of that, Germany is moving to structured e-invoices between businesses: receiving them has been mandatory since 2025, issuing them becomes mandatory in 2027 or 2028. This guide covers a standard domestic invoice and the e-invoice dates, checked on official sources on 12 November 2026.

What a German invoice must show

• The full name and address of your business and of your customer.
• Your tax number (Steuernummer) from the tax office, or your VAT ID (USt-IdNr.).
• The issue date.
• A sequential invoice number, in one or more series, used only once.
• The quantity and usual name of the goods, or the type and extent of the service.
• The date of the supply or service; the calendar month is enough. For an advance invoice, the payment date if it is known and different from the issue date.
• The net amount broken down by VAT rate or exemption, plus any discount agreed in advance (for example a Skonto) that is not already in the price.
• The VAT rate and the VAT amount, or a note that the sale is exempt.
• For building work for a private customer, a note that the customer must keep the invoice for two years.
• The word “Gutschrift” when your customer issues the invoice for you (self-billing).

When your customer pays the VAT (reverse charge), the invoice shows no VAT and carries the words “Steuerschuldnerschaft des Leistungsempfängers”. For a service to a business in another EU country, it also shows both VAT IDs.

Small invoices up to €250

For a total of up to €250 including VAT, a simplified invoice (Kleinbetragsrechnung) is enough: your name and address, the issue date, what was sold, and the total with the VAT rate, or a note on the exemption. No customer details and no invoice number are needed. It cannot be used for distance sales, intra-EU supplies or reverse-charge sales, and it can always stay on paper or PDF, even after the e-invoice rules start.

Deadlines and record keeping

For a sale to another business, issue the invoice within six months of the supply. For a service to a business in another EU country, or goods sent to one, the deadline is the 15th day of the following month. Keep a copy of every invoice you issue and receive for eight years, counted from the end of the year it was issued; the period was ten years until the end of 2024.

Which VAT rate applies

The standard rate is 19 %. The reduced rate of 7 % covers most food, books and newspapers, short-term hotel stays, local passenger transport and, since 1 January 2026, restaurant and catering services, with drinks still at 19 %. Solar panels for homes can be sold at 0 %. Small businesses under § 19 UStG (turnover up to €25,000 last year and €100,000 this year) charge no VAT and must say so on the invoice, for example “Gemäß § 19 UStG wird keine Umsatzsteuer berechnet”. Check the exact category with the tax office or your adviser before choosing a reduced rate.

A quick example

A consultant in Munich invoices a company in Hamburg for a €1,000 service at the standard rate. The invoice shows both businesses, a new number, the issue date and the month of the service, describes the work, then shows €1,000 net, 19 % VAT of €190 and €1,190 in total. In 2026 the consultant can still send it as a PDF if the customer agrees; from 2027 or 2028, depending on the consultant’s turnover, it must be an e-invoice.

The E-Rechnung: what changes and when

Until then, paper is always allowed and a PDF needs the customer’s consent, which can be implied. A customer who cannot receive an e-invoice has no right to ask for a paper copy instead: you have done your part if you issued the e-invoice and can show you tried to send it. As of November 2026 none of these dates has been moved.

What does not need an e-invoice

• Invoices to private customers (B2C).
• Tax-exempt sales such as renting out housing or financial services, which need no invoice at all.
• Sales where you or your customer is not established in Germany: cross-border invoices can stay on paper or PDF.
• Invoices up to €250 including VAT, and travel tickets.
• Invoices from small businesses under § 19 UStG, which must still be able to receive e-invoices.

Formats and how to send them

An E-Rechnung is a structured file that follows the European standard EN 16931. XRechnung counts, and so does ZUGFeRD from version 2.0.1, except its MINIMUM and BASIC-WL profiles; other EN 16931 formats from other EU countries are also accepted. In a hybrid file such as ZUGFeRD, the structured data counts, not the PDF image. A plain PDF, a scan or details in an e-mail are not e-invoices. There is no central platform and Peppol is not required: e-mail, a customer portal, an interface or EDI are all fine. The tax administration offers a free viewer at e-rechnung.elster.de.

Late payment

Between businesses, late-payment interest is the base rate plus 9 points: 10.52 % a year for the second half of 2026, with the base rate at 1.52 %. You can also claim a €40 flat fee. Without a reminder, the customer is in default 30 days after the due date and the receipt of the invoice. For the EU rules behind this, see late payment interest.

How Tavalle helps

Tavalle creates numbered invoices from your orders with the customer details, the VAT rate and the totals, and exports them for your accountant. With your company’s own Peppol access-point account, it also sends them as Peppol e-invoices, which follow the EN 16931 standard, checks first that the customer can receive on Peppol and follows the delivery. Ask your German customers which format and channel they use, and see invoicing and VAT and the EU e-invoicing timeline.

Official sources: BMF questions and answers on the E-Rechnung, § 14 UStG, § 27 UStG (transition dates), § 33 UStDV (small invoices), § 12 UStG (VAT rates) and § 288 BGB (late payment).

This guide is general information, not tax or legal advice. VAT treatment depends on the transaction and can change. Check the current rules with the tax office (Finanzamt) or your tax adviser.