An invoice issued by a small business must clearly identify the supplier, the customer, the goods or services and the price. For a transaction exempt from VAT under section 19 UStG, do not show VAT separately. Include a note explaining the exemption instead. This guide covers ordinary domestic transactions in Germany and provides a sample invoice you can adapt.
Briefly explained
Since 2025, section 34a UStDV has set out simplified invoice requirements for VAT-exempt small business transactions. A VAT identification number is not compulsory: a business tax number (Steuernummer) issued by the tax office is one acceptable alternative. Invoice numbers and dates of supply are not part of this specific statutory minimum, but are useful for keeping clear accounting records.
The German VAT exemption scheme for small businesses (Kleinunternehmerregelung) is a VAT scheme, not a legal form or a general exemption from tax. For businesses established in Germany, the relevant turnover must generally not exceed EUR 25,000 in the previous calendar year and EUR 100,000 in the current calendar year. These are turnover limits, not profit limits. The entire transaction that takes turnover above the current-year limit is already outside the section 19 exemption. For a newly established business, the first-year limit is EUR 25,000. Businesses that have validly opted out of the scheme follow the normal VAT rules.
The following requirements concern invoices for transactions that actually qualify for the section 19 UStG exemption. Check the additional rules for cross-border transactions, reverse charge and invoices to public authorities.
Step by step
1. Enter the legally required information
According to § 34a UStDV, such an invoice must contain at least:
- Your full name and address and the customer's full name and address. A sole trader's trading name alone is insufficient.
- Your business tax number issued by the tax office (Steuernummer), your VAT identification number (Umsatzsteuer-Identifikationsnummer) or your small business identification number (Kleinunternehmer-Identifikationsnummer). One of these is sufficient. Your personal tax identification number is not a substitute for your business tax number.
- The date the invoice was issued.
- Quantity and type of items delivered or scope and type of service provided. “Service” alone is usually too imprecise; “Designing a logo including two rounds of corrections” is understandable.
- The fee for the delivery or service in one sum as well as a note that the tax exemption applies to small businesses in accordance with Section 19 UStG.
- The word “Gutschrift” if the customer, or a third party acting on their behalf, issues the invoice under an agreed self-billing arrangement. This means invoicing by the customer, not a credit note correcting a previous invoice.
The special simplifications of Sections 33 and 34 UStDV remain applicable for small-value invoices up to 250 euros and travel tickets. A template with full details is practical even for small amounts.
2. Add the reference to § 19 UStG
A possible formulation is:
This service is exempt from VAT under the German small business scheme pursuant to section 19 UStG.
The meaning must be clear; there is no prescribed wording. Do not add a VAT line charging 7 or 19 percent. “0% VAT” is also an unsuitable explanation, as it can confuse the small business exemption with a zero rate. State the total amount payable and add the exemption note.
If you nevertheless show VAT separately, you may owe that VAT under section 14c UStG. Discuss corrections promptly with your tax adviser. Your business customer cannot deduct input VAT from a properly issued small business invoice because no VAT is charged.
3. Use meaningful additional information
A unique invoice number, the date or period of supply, a customer number, the agreed payment deadline and your bank details help with matching records and making payments. These are not part of the specific minimum VAT requirements in section 34a UStDV. Other statutory requirements, such as company details on business correspondence, and contractual agreements still apply.
Assign invoice numbers according to a comprehensible system, for example 2026-0042. Describe services in such a way that the customer can assign them to the order. If there are several items, the quantity, individual price and total should mathematically match.
4. Practical example of a small business invoice
The following names and addresses are fictitious. Replace any placeholders with your actual information. The number, date of service and payment deadline are included here as useful additional information.
Invoice No. 2026-0042
Supplier: Lara Beispiel · Graphic design · Musterstraße 10 · 10115 Berlin
Tax number: [your company tax number]
Recipient: Max Muster · Beispielweg 5 · 10117 Berlin
Invoice date: October 5, 2026
Date of service: September 30, 2026
Service: Design of a logo including two rounds of corrections
Quantity: 1 ·Price: 450.00 EUR
Invoice amount: EUR 450.00
This service is exempt from VAT under the German small business scheme pursuant to section 19 UStG.
Please transfer EUR 450.00 by 19 October 2026 to the agreed bank account: [account holder and IBAN]. Use 2026-0042 as the payment reference.
No VAT is added. The customer pays EUR 450.00 in total. This example is for a straightforward service exempt from VAT in Germany; it is not a universal template for cross-border or other special transactions.
5. Choose the right invoice format
For transactions exempt under section 19 UStG, section 34a UStDV allows small businesses to continue issuing a non-structured invoice (“sonstige Rechnung”), for example on paper or as a simple PDF. Sending a PDF invoice electronically requires the recipient's consent, which may also be implied by their conduct. This exemption from issuing structured e-invoices is not merely a transitional rule for 2026.
Since January 1, 2025, domestic small businesses must also be able to receive e-invoices for their business purchases. An email inbox is generally sufficient for this. A simple PDF is not a structured e-invoice. Common formats are XRechnung and suitable ZUGFeRD profiles. Make sure you can read, review, and retain the structured data.
Independent e-invoice specifications may apply to invoices to public clients. If you switch to standard taxation, you must re-examine the applicable requirements, including possible transition periods.
6. Send and retain invoices with a clear audit trail
As a general rule, keep a copy of your outgoing invoice and the invoices you receive for eight years. The deadline according to § 14b UStG begins with the end of the calendar year in which the invoice was issued. For an invoice from October 2026, it generally ends on December 31, 2034. Tax-relevant circumstances may require longer storage.
Digital invoices must remain readable and traceable throughout the retention period. In particular, the structured part of an e-invoice must be kept intact in its original form; a printout alone is insufficient. Link each invoice to the order and payment. Document subsequent corrections rather than silently overwriting an invoice that has already been sent.
Checklist
- The service is actually tax-free according to Section 19 UStG.
- Names and addresses of both sides are complete.
- A valid tax number for the issuer is provided.
- Invoice date, service description and total amount are correct.
- The reference to the small business exemption is included.
- No VAT is shown separately.
- Useful additional information such as invoice number and payment date have been checked.
- The delivery format, filing process and any special rules have been checked.
Typical mistakes
- Assuming a VAT ID is compulsory:The company tax number is a permissible alternative. Don't wait unnecessarily for a VAT ID if you already have a suitable tax number.
- Using a template that charges VAT:Check the VAT lines, totals and footer together. An exemption note does not automatically eliminate the consequences of incorrectly showing VAT.
- Treating all small businesses alike:Kleinunternehmerregelung and Kleingewerbe are different terms. Your VAT status is crucial for the specific service.
- Imprecise services or missing recipient data:Request the correct information and issue a traceable correction. A formal defect in an invoice does not automatically remove the underlying entitlement to payment.
Frequently asked questions
Do I absolutely need a consecutive invoice number?
Not under the minimum requirements of section 34a UStDV. A clear numbering system is nevertheless recommended for organizing and matching records. Different general invoice requirements apply under the normal VAT rules.
Can I write an invoice in another language?
In principle, an invoice in a foreign language is possible. The information must be understandable and complete; the tax office may request a translation. A German or bilingual version is often practical for German business customers. A translation does not change the fact that German tax rules apply.
Is small business the same as working tax-free?
No. The scheme concerns VAT on qualifying transactions. Income tax, trade tax where applicable, and other obligations remain. Certain cross-border situations can also create VAT obligations.
What do I do if the customer requests an invoice with VAT?
Don’t declare VAT solely at the customer’s request. First check whether the service is actually tax-free. Waiving the Kleinunternehmerregelung is a tax decision with consequences for the entire company and is generally binding for at least five calendar years.
Conclusion
A good small business invoice needs correct information about parties and services, a permissible tax number, the invoice date, the total amount and a reference to § 19 UStG. With a clear number, a clear payment term and reliable record-keeping, it becomes a document that helps you and your customer in everyday life.
Next step
Motorica.io lets you organize invoices and customer information in one place. Before sending for the first time, check whether your tax status and the information in your invoice template match your business.
Sources and legal reference date
Legal status: October 5, 2026. This article provides general information on German law and does not replace individual tax or legal advice.
- § 34a UStDV – Invoices from small businesses
- § 19 UStG – Tax exemption for small businesses
- § 14 UStG – Forms of invoice and transmission
- § 14b UStG – Storage of invoices
- Section 14c UStG – Incorrect or unauthorized VAT shown on invoices
- BMF – Questions and answers about e-invoicing
- BMF – new regulations for small businesses from 2025