Invoicing as a Self-Employed Handyman in Germany: What You Need to Know
Getting the work done is the easy part. Getting paid -- and staying compliant with German tax rules -- requires a bit more attention. German invoice law (§ 14 UStG) is specific about what every invoice must include, and mistakes can cause headaches with both clients and the Finanzamt. Here's a straightforward guide to doing it right.
Mandatory Fields on Every German Invoice
Under § 14 UStG (Umsatzsteuergesetz -- German VAT law), every invoice you issue must contain the following information. Missing even one field can make the invoice legally invalid.
- check_circleYour full name and address
- check_circleYour client's full name and address
- check_circleYour Steuernummer (tax number) issued by the Finanzamt, or your Umsatzsteuer-Identifikationsnummer (VAT ID)
- check_circleA unique, sequential invoice number
- check_circleThe date the invoice was issued
- check_circleA clear description of the service provided
- check_circleThe date the service was performed (if different from the invoice date)
- check_circleThe net amount (Nettobetrag)
- check_circleThe applicable VAT rate and amount -- or a note that you're exempt (see below)
- check_circleThe total amount (Bruttobetrag)
- check_circleYour bank details (IBAN and BIC)
- check_circlePayment due date or payment terms
VAT and the Kleinunternehmerregelung
If your annual turnover is below €22,000 (the 2026 threshold), you can apply the Kleinunternehmerregelung -- the small business exemption -- meaning you don't charge VAT. This simplifies your invoicing considerably. However, you must include a specific note on your invoices such as: "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet." You also cannot claim back VAT on your business purchases.
- check_circleAnnual turnover under 22,000 €: Kleinunternehmer status available (check with your Steuerberater)
- check_circleAbove the threshold: you must register for VAT and charge 19% on services
- check_circleIf in doubt, consult a tax adviser -- the threshold rules have nuances
Setting Payment Terms
German law doesn't mandate a specific payment period, but the standard in the trades is 14 days from the invoice date. You can shorten or lengthen this, and it's worth stating it explicitly on every invoice. For larger jobs, it's entirely normal to request a 20-30% advance payment (Abschlagszahlung) before starting.
- check_circleStandard: 14 Tage netto (14 days net)
- check_circleState the due date explicitly -- "Payment due by [date]" is clearer than "within 14 days"
- check_circleAdd your IBAN on every invoice so clients can pay immediately
- check_circleConsider offering a small discount for early payment on larger invoices
Invoice Templates and Software
You don't need expensive software to invoice correctly. Several affordable or free options work well for freelance tradespeople in Germany.
- check_circleSevdesk, Lexoffice, and FastBill all handle German invoice requirements and integrate with DATEV
- check_circleWord or Google Docs templates work fine for lower volume -- just be disciplined about invoice numbers
- check_circlePlatforms like Fixters generate payment records for you, which can simplify your bookkeeping
- check_circleWhatever you use, keep copies of every invoice for at least 10 years (German retention requirement)
What to Do When a Client Doesn't Pay
Late payment is frustrating, but there's a clear process to follow in Germany.
- check_circleSend a polite payment reminder (Zahlungserinnerung) once the due date passes
- check_circleIf ignored, send a formal Mahnung (formal demand) -- after two reminders you can add late fees
- check_circleStatutory default interest in Germany is currently 5 percentage points above the base rate
- check_circleFor amounts under €5,000, the Mahnverfahren (court payment order) is a fast, cheap option
- check_circleFor persistent non-payment, a Rechtsanwalt (lawyer) specialising in debt collection can be worthwhile for larger sums
- check_circleUsing a platform with built-in payment protection -- like Fixters -- avoids most of these situations entirely
Join Fixters to receive jobs directly, with payment handled securely through the platform.
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