Germany Invoice Template

Create invoices online with German Invoice Template

Is your business eligible for VAT registration in Germany? If you’re registered for VAT, you will need to provide VAT-compliant sales invoices with every transaction. Simplify your VAT compliance today with FreeInvoiceBuilder.com invoice templates. Just fill in the built-in fields for the required information to build your free German VAT invoice today.

Invoicing in Germany

One of the main components of remaining compliant with VAT regulations in Germany is supplying correct tax invoices with every sale and keeping all receipts for business-related transactions. There are certain things & itemsΒ you need to include when invoicing in Germany

Germany Invoice Requirements

βœ” Date of invoice issuance
βœ” Date of supply (if different than date of invoice)
βœ” Your VAT number
βœ” A unique, sequential invoice number
βœ” Business VAT number
βœ” Quantity of goods provided
βœ” Full address of both the business & customer
βœ” Description of goods or services supplied
βœ” Quantity of items if applicable
βœ” Net value of taxable items or services
βœ” VAT amount and applied rate
βœ” Total, gross invoice value
βœ” If zero-rated, provide details (i.e., export, reverse charge, or EU supply)

Germany VAT Information on Invoices

The EU operates a common VAT scheme to facilitate trade and commerce between member states. Value Added Tax, or VAT, is the general consumption tax applied to most goods and services supplied in the European Union. Exports are generally not subject to VAT, while imports are taxed. Germany is an EU member state participating in the Eurozone’s unified VAT collection policy.

VAT applies to the production and distribution of goods and services and is levied at each stage of the supply chain and paid by the end consumer. The tax is transferred by the supplier to the tax authorities, making VAT an indirect tax.

The tax authority responsible for VAT regulation and collection in Germany is the Federal Central Tax Office.

Germany VAT Rates

Germany Invoice VAT & GST Rates

VAT Rates in Germany for Invoicing

Depending on the kind of goods or services being provided, different VAT rates will apply. The categories of VAT are standard VAT, reduced rate, and zero-rated. All of these categories must be accounted for and reported to the local tax authority.

VAT Rates &Types Included goods and services
19% – StandardΒ  Most taxable goods and services
7% –Β ReducedΒ  Basic food items, medical care and equipment, public transportation, books and other reading materials, tourism-related goods and services, cultural and sporting events, social services, fine metals, plants.
0% –Β Zero-ratedΒ  Some domestic & international transport (excluding road and rail and some inland waterways transport)

Once you have received a German VAT number and are registered for German VAT, you will be required to comply with German tax law, including:

● Issuing tax invoices, including e-invoices, with all required details and at the correct time of issuance
● Maintain records and accounts for at least 10 years
● Process credit notes and corrections
● Use approved foreign currency rates

Who Needs to Register for VAT in Germany?

Germany participates in a harmonized EU VAT system and therefore shares the same registration requirements as other European countries. Businesses are required to register for VAT if they perform the following services:

● Buying and selling taxable goods in Germany
● Importing goods into Germany
● Maintaining warehouses in Germany
● Holding a paid conference or event in Germany
● Distance selling and E-Commerce to Germany
● Under specific circumstances, supplying equipment or services

For German companies, the threshold for VAT registration is €22,000 annual turnover for regular supply and €100,000 for E-Commerce companies selling goods to German customers. For non-resident businesses operating in Germany, the VAT registration threshold is nil. This means that you will likely need to get a German VAT number and register for VAT if you are doing business in that country.

How to Register for German VAT

Once you have determined that you are required to register for VAT in Germany, you will first need to apply for a VAT number before you can begin charging and filing for VAT.

Within a week of presenting these documents and submitting the necessary forms, you will be assigned a unique 9-digit German VAT number. Once your business has received a VAT number, you will be able to levy VAT and will have to comply with German VAT compliance rules and file regular returns.

You’ll need to provide the following documents:

βœ” A VAT certificate, For EU businesses

βœ” Articles of Association of your business

βœ” Proof of national trade register

Reverse Charge VAT in Germany

As part of the EU’s harmonized VAT system, foreign entities supplying goods or services to a VAT registered EU business will not be required to register or account for VAT. Rather, the recipient will assume the liability for recording VAT. This reduces the burden of compliance and simplifies trade within the EU. The reverse charge, therefore, applies to non-EU companies supplying services, goods, contracts, utility services, and other categories to German VAT-registered businesses.

How to reclaim your VAT

Recovering VAT in Germany

Once you have a German VAT number and are registered with the tax authority, you will be able to recover VAT when filing. Essentially, if the VAT collected from customers in the course of business is less than the amount of VAT paid for business-related expenses and operational costs, you may be eligible to reclaim the difference. If, on the other hand, the VAT collected from customers is greater than the VAT paid out, then you will likely be liable to pay the difference.

Settling VAT is easy to do via the government’s online portal. Once relevant documents have been uploaded, the refund is processed, and refunds released directly to the submitting business. According to the EU VAT directives, non-EU companies with tax reciprocity agreements may reclaim VAT using the online portal. If the business in question is local to a country with no tax reciprocity agreement with Germany, then no VAT can be reclaimed.

If you are eligible to reclaim VAT as a business registered to collect VAT in Germany, make sure you file by the required deadlines, or you will lose your eligibility for a refund.

Back To Top