Writing German invoices: required information and net versus gross

A compliant invoice is more than a document template. The customer data, service description, service date, unique invoice number, tax treatment, delivery, correction, and payment status must remain connected.

Section 14 of the German VAT Act lists core information for standard invoices, including the parties, tax number or VAT ID, issue date, unique sequential number, service details and date, consideration, and tax information. Simplified minimum requirements apply to certain invoices with a total amount of up to EUR 250. Special VAT cases require separate professional review.

Before sending an invoice, validate master data, totals, tax information, payment terms, and numbering. Preserve the sent version and correct errors with a clearly linked correction rather than silently replacing the original. For e-invoices, also validate the structured data because a readable PDF view is not sufficient on its own.

For an ordinary taxable invoice, net is the price before VAT and gross is the total including VAT. Tax is calculated on the net consideration. Do not simply add VAT to a price already agreed as gross; first establish the contractual price basis.

Germany’s standard rate is 19%, but certain supplies have other rates or exemptions. The following calculations explicitly assume one supply taxed uniformly at 19%, excluding discounts, advance payments and mixed rates.

For €100 net, VAT is €100 × 0.19 = €19, producing €119 gross. Starting with the gross amount, €119 ÷ 1.19 gives €100 net. The VAT component is then €119 − €100 = €19.

Subtracting 19% of the gross figure is incorrect: €119 − €22.61 equals €96.39. For a uniform rate, gross = net × (1 + rate), and net = gross ÷ (1 + rate). Multiple invoice lines also require rounding checks and reconciliation of totals by rate.

With full input VAT recovery, recoverable VAT generally is not part of the cost, even though the ordinary supplier payment includes it. Whether the net amount is immediately expensed or recognized as a fixed asset is a further question. Non-recoverable VAT can increase the expense or acquisition cost.

No VAT is separately charged on turnover exempt under section 19 UStG. Reverse charge is different again: it is not simply a zero rate, since the recipient may owe VAT. Use the standard formula only after establishing the tax treatment. Retain the reviewed invoice and any later corrections traceably.