German Invoice Terms
in Plain English

Rechnung

Invoice. The formal document you send to a client requesting payment for goods or services. Germany has strict legal requirements for what a valid Rechnung must contain — see §14 UStG.

Rechnungsnummer

Invoice number. Must be unique and sequential. You define the format — e.g. 2026-001 — but cannot have gaps or duplicates. During a tax audit, the Finanzamt will check that your sequence is unbroken.

Rechnungsdatum

Invoice date. The date the invoice was issued, which may differ from the service date.

Leistungsdatum

Service date (or delivery date). The date — or period — when the work was actually performed or goods were delivered. Required even if it matches the invoice date. Many freelancers forget this field.

Leistungsbeschreibung

Service description. A clear statement of what work was done or what goods were supplied. Vague descriptions like 'services' or 'consulting' are not legally sufficient — be specific.

Nettobetrag

Net amount. The price before VAT is added. For Kleinunternehmer, this is also the final total since no VAT is charged.

Bruttobetrag

Gross amount. The total the client pays, including VAT (if applicable).

Pflichtangaben

Mandatory fields. The legally required elements every German invoice must include, as defined in §14 Abs. 4 UStG. There are 10 of them for a standard invoice.

Kleinbetragsrechnung

Small-amount invoice. Invoices with a gross total of €250 or less have simplified requirements under §33 UStDV — you can omit the client's address and sequential invoice number.

Stornorechnung / Korrekturrechnung

Cancellation or correction invoice. Issued to void or correct a previously sent invoice. Must reference the original invoice number. Issue a new invoice with a new sequential number — never edit the original.

MwSt / Mehrwertsteuer

VAT (Value Added Tax). The standard rate in Germany is 19%. A reduced rate of 7% applies to certain goods and services (e.g. books, food). Kleinunternehmer do not charge MwSt.

Umsatzsteuer

Another word for VAT — literally 'turnover tax'. Used interchangeably with Mehrwertsteuer in official contexts and on tax returns.

Umsatzsteuer-ID

VAT identification number (also: USt-IdNr). Issued to VAT-registered businesses. Format: DE followed by 9 digits. Required when invoicing EU business clients under reverse charge. Kleinunternehmer do not have one.

Steuernummer

Tax number. Issued by your local Finanzamt when you register as self-employed. This is the number Kleinunternehmer put on invoices instead of a VAT ID. Format varies by state (Bundesland).

Steuer-ID

Personal tax ID (Steueridentifikationsnummer). An 11-digit number assigned to every person in Germany at birth or upon registration. Not the same as your Steuernummer — do not use it on invoices.

Kleinunternehmer

Small entrepreneur. A self-employed person whose annual revenue stays below ~€22,000 and who is exempt from VAT under §19 UStG. No VAT is charged; the §19 disclaimer must appear on all invoices.

§19 UStG

The paragraph in the German VAT Act that exempts Kleinunternehmer from charging VAT. Invoices must include the disclaimer: 'Gemäß §19 UStG wird keine Umsatzsteuer berechnet.'

Vorsteuer

Input VAT. The VAT you pay on your own business expenses. VAT-registered freelancers can reclaim Vorsteuer from the Finanzamt. Kleinunternehmer cannot — this is one of the trade-offs of the exemption.

Umsatzsteuervoranmeldung

VAT pre-declaration. Monthly or quarterly VAT return filed by VAT-registered businesses via Elster. Kleinunternehmer are not required to file these.

Regelbesteuerung

Standard VAT treatment. The regime that applies when you are not a Kleinunternehmer — you charge VAT, file returns, and can reclaim input VAT. You can voluntarily opt into this even below the thresholds.

Auftraggeber

Client / customer. The person or company commissioning and paying for the work.

Auftragnehmer

Contractor / service provider. You — the freelancer or business issuing the invoice.

Freiberufler

Freelancer in a liberal profession (e.g. designer, writer, consultant, engineer, doctor). Registers with the Finanzamt only — no Gewerbeamt needed. Exempt from Gewerbesteuer (trade tax).

Gewerbetreibender

A person running a trade or commercial business. Must register with both the Finanzamt and the Gewerbeamt, and pays Gewerbesteuer (trade tax) if profit exceeds €24,500.

Zahlungsziel

Payment due date or payment terms. For example: 'Zahlungsziel: 14 Tage' means payment is due within 14 days of the invoice date. German law does not mandate a due date, but specifying one is strongly recommended.

IBAN

International Bank Account Number. Your German bank account number in the standard European format (starts with DE for German accounts). Required on invoices so clients can pay by bank transfer.

BIC / SWIFT

Bank Identifier Code. Required alongside the IBAN for international transfers from outside the SEPA zone (e.g. from the US or UK). Not needed for transfers within Germany and the EU.

Skonto

Early payment discount. For example: '2% Skonto bei Zahlung innerhalb von 10 Tagen' means a 2% discount if paid within 10 days. Optional — only include if you offer it.

Mahnung

Payment reminder or dunning notice. Sent when a client has not paid by the due date. Germany has a structured process: first informal reminder, then formal Mahnung, then legal escalation. You are entitled to charge late payment interest (Verzugszinsen) from the due date.

Zahlungsverzug

Payment default / late payment. In Germany, payment is considered late 30 days after the due date (or 30 days after the invoice date if no due date was specified). Late payment interest (Verzugszinsen) automatically applies.

GoBD

Grundsätze zur ordnungsmäßigen Führung und Aufbewahrung von Büchern — Germany's bookkeeping compliance rules. For freelancers: keep unalterable copies of all invoices for 10 years, accessible on demand during a tax audit.

Reverse Charge

A VAT mechanism where the client (not the supplier) accounts for VAT. Applies to cross-border services within the EU between VAT-registered parties. Invoice must state: 'Steuerschuldnerschaft des Leistungsempfängers.'

Betriebsprüfung

Tax audit. The Finanzamt may audit your books and invoices, typically covering 3–5 years. Having sequential, complete, and unaltered invoice records makes this straightforward.

Gewerbeanmeldung

Trade registration. Required when you are running a commercial business (Gewerbe) as opposed to a liberal profession. Done at the local Gewerbeamt. Cost is typically €20–€60.

Fragebogen zur steuerlichen Erfassung

Tax registration questionnaire. The form you submit to the Finanzamt when you start self-employment. This is where you declare your expected revenue and request Kleinunternehmer status if applicable. Can be submitted via Elster (online) or on paper.

Einnahmen-Überschuss-Rechnung (EÜR)

Simplified income-expense statement used by most freelancers and small businesses in Germany instead of full double-entry bookkeeping. You record income when received and expenses when paid, then report the surplus as taxable income.