Freiberufler vs Gewerbe. Freiberufler covers the catalogue professions in §18 EStG — doctors, lawyers, architects, engineers, designers, journalists, translators, therapists and similar professional services. Gewerbetreibende run a trade business and must file a Gewerbeanmeldung; Gewerbesteuer applies above the local exemption threshold. Quotae works for both — the invoice format is identical, only the tax filing differs.
Umsatzsteuer rates. The German standard rate is 19% and the reduced rate is 7% (books, food, some cultural services). Certain professional services are exempt. Invoices must show net amount, VAT rate, VAT amount and total separately per §14 UStG.
Kleinunternehmerregelung (§19 UStG). Small-business VAT exemption. The 2025 reform raised the thresholds to €25,000 prior-year turnover and €100,000 forecast current-year turnover (previously €22,000 and €50,000). Kleinunternehmer invoices must include the line “Steuerbefreiung gemäß §19 UStG” and do not charge VAT. Verify your status with your Steuerberater — thresholds can evolve.
E-invoicing mandate. Since 1 January 2025, all German B2B businesses must be able to receive structured electronic invoices (BMF reference). Issuing in structured format (XRechnung XML or ZUGFeRD hybrid PDF/XML) becomes mandatory from 2027 for companies above €800,000 turnover and from 2028 for smaller businesses, with transition rules running through the end of 2027.
Mandatory invoice fields (§14 UStG). Issuer and recipient name and address, issuer's Steuernummer or USt-IdNr., invoice date, unique sequential number, description and quantity of supply, supply date, net amount, VAT rate, VAT amount and total. Kleinunternehmer add the §19 UStG exemption line; reverse-charge invoices add the “Steuerschuldnerschaft des Leistungsempfängers” notation.