How to Invoice a Client in Germany

First decide whether the sale is domestic German or cross-border B2B

The invoice rules change depending on the transaction. A local German sale normally requires German VAT on the invoice. An intra-EU B2B sale can often be invoiced without VAT if the conditions for exemption or reverse charge are met.

For a domestic German sale, you normally issue the invoice with German VAT. You must show your German VAT identification number or tax number where applicable, the taxable base, the VAT rate and the VAT amount.

For an intra-EU B2B supply to a German customer, you usually invoice without charging VAT when the customer gives you a valid German VAT number and the goods or services meet the EU rules. The customer's VAT number must be checked before invoicing.

For a supply from Germany to another EU business, the same logic applies in the other direction: identify the customer, validate the VAT number, document the transport or service flow, and use the correct VAT exemption or reverse charge wording.

Mandatory information on a German invoice

A German invoice is valid for VAT purposes only if the required information is present and consistent. Missing fields can block input VAT deduction for your client and delay payment.

Include the following elements:

• Unique sequential invoice number: each invoice needs a distinct reference following a logical sequence.

• Invoice issue date: the date the invoice is issued.

• Supply or service date: delivery date, service period or payment date when relevant.

• Supplier identity: legal name and full business address.

• Customer identity: legal name and billing address, and delivery address if different.

• Supplier tax number or VAT ID: Steuernummer or Umsatzsteuer-Identifikationsnummer depending on the case.

• Customer VAT ID: mandatory for intra-EU B2B transactions.

• Description of goods or services: precise enough to identify what was supplied.

• Quantity and unit price: where relevant.

• Taxable amount: net amount before VAT.

• VAT rate and VAT amount: show each rate separately if more than one rate applies.

• Total amount payable: gross total or net total where the invoice is VAT-exempt.

If the invoice contains several VAT rates, separate the taxable base and VAT amount for each rate. Mixing a 19% line and a 7% line into one total without breakdown creates avoidable compliance risk.

German VAT rates: 19% and 7%

Germany's standard VAT rate is 19%. This is the rate you will use for most domestic supplies of goods and services.

The reduced rate is 7%. It applies only to specific categories, such as certain food products, books, newspapers, public transport services and other items listed by German VAT law.

Do not apply the 7% rate because the customer asks for it or because a similar product is reduced-rated in another EU country. Reduced rates are local. A French, Belgian or Italian VAT treatment does not automatically transfer to Germany.

Reverse charge wording for intra-EU B2B invoices

For intra-EU B2B transactions, the invoice must make clear that the customer accounts for VAT where the reverse charge or exemption applies. In English, a clear wording is usually enough, but using the German wording helps your customer process the invoice faster.

Useful wording includes:

• Reverse charge: "Reverse charge - VAT to be accounted for by the recipient."

• German wording: "Steuerschuldnerschaft des Leistungsempfängers."

• Intra-Community supply of goods: "Tax-exempt intra-Community supply."

• German wording: "Steuerfreie innergemeinschaftliche Lieferung."

• Export exemption: "Tax-exempt export."

• German wording: "Steuerfreier Export."

For intra-EU supplies of goods, many businesses also refer to Article 138 of Directive 2006/112/EC. This is useful, but it does not replace the underlying conditions: valid VAT numbers, B2B status, transport evidence and correct reporting.

Language and currency: English is usually acceptable

You do not have to issue the invoice in German. German tax authorities generally accept invoices in English, although a translation may be requested during an audit.

For customer experience, German labels can still help. Use them where they make the invoice easier to read:

You may also invoice in a currency other than EUR. The invoice itself does not necessarily need to show an EUR equivalent, but your VAT records and returns must use the appropriate official exchange rate.

German B2B e-invoicing: check whether your invoice is in scope

Germany has introduced mandatory B2B e-invoicing for domestic transactions between businesses established in Germany from 1 January 2025, with transitional rules. A structured e-invoice must comply with EN 16931 or an agreed compatible format.

This does not turn every cross-border invoice to a German customer into a domestic German e-invoice case. But it changes expectations in practice. German customers may increasingly request structured formats such as XRechnung or ZUGFeRD, even when your invoice is cross-border.

How long should German invoices be kept?

German invoice records must generally be retained for 8 years under Section 14b of the German VAT Act (UStG). The retention period starts at the end of the calendar year in which the invoice was issued.

This is a point to update in older internal checklists: the current invoice retention period under Section 14b UStG is 8 years from 1 January 2025.

Keep the invoice in a way that preserves readability, authenticity and access throughout the retention period. For electronic invoices, archiving the PDF alone may not be sufficient if the legally relevant invoice is a structured file.

Practical checklist before sending the invoice

Before you send an invoice to a German client, check these points: See our guide on the VAT return in Germany.

• Have you identified whether the sale is domestic, intra-EU B2B, export or reverse charge?

• Do you need a German VAT number for this transaction?

• Have you verified the customer's German VAT ID for intra-EU B2B invoicing?

• Is the VAT rate correct: 19%, 7%, exemption or reverse charge?

• Are the mandatory invoice fields complete?

• Is the reverse charge or exemption wording clear?

• Is the currency treatment documented for VAT reporting?

• Do you need a structured e-invoice format for this customer?

• Is the invoice archived for 8 years in an audit-ready format?

Factoring Germany into your invoicing process is mostly about discipline. Determine the VAT treatment first, then issue the invoice with the right fields, wording and evidence trail. That is what keeps the invoice payable for your customer and defensible for your tax file. Many foreign companies appoint a fiscal representative in Germany to handle the German tax side. See our guide on the EC Sales List and Intrastat in Germany.