![]() ![]() Some countries have a tax treaty with Germany, while others don’t. If your client is based in a country outside of the EU, such as the USA or Australia, reporting VAT becomes a little more complicated. □ Tip from Accountable : If you create an invoice for an intra-community service using our free invoice template, the use of the Reverse Charge procedure will be automatically noted on the invoice. 5 UStG, subject to reverse charge in the country of receipt). (VAT has not been charged, according to §13b Abs. This process is known as the Reverse Charge procedure, and must be indicated as such on the invoice: Steuerschuldnerschaft des Leistungsempfängers (§13b Abs. In this case, both you and your client must have a VAT ID, and the invoice recipient must pay tax on the goods or services in their own country. Trade within the EU is regulated by tax law and is referred to as intra-community delivery or service. ![]() ![]() Clients within the EUįor clients outside of Germany, but still within another member state of the European Union, you do not need to apply VAT or show it on your invoice. If you’re sending an invoice to a client with headquarters abroad, you need to find out whether or not VAT should be applied and, if not, include the right exemption statement. □ Tip from Accountable If you expect to earn less than €22,000 a year, make sure you indicate this by ticking the right box when you submit your tax registration as a freelancer. (In accordance with §19 of the German VAT law, no VAT has been added to this invoice). It might look something like this: Gemäß § 19 UStG wird keine Umsatzsteuer berechnet. However, in this case, you do need to add a sentence to explain why you are exempt from charging VAT. Anyone with this classification is exempt from the obligation to pay VAT and must not charge VAT on invoices. Self-employed people who earn less than € 22,000 a year may apply to be classified as small business owners, or “ Kleinunternehmer ”. Payment terms: Most people choose to ask for payment within two weeks or 30 days of receipt.Any discounts agreed upon with the client.Where relevant, you might also include the below information: Payment instructions: Your bank account details or other payment options.Invoice amounts, including Net amount, VAT amount, and Gross amount.The VAT rate applied to the items listed, or information on why VAT is not applied.The date or time period in which the goods or services were rendered.The price for the goods or services listed.The quantity or scope of the goods or services provided.A description of the goods delivered or services provided.An invoice number (they should be numbered consecutively). ![]() The full name of the person receiving the invoice (this could be the main contact you deal with for each of your clients).Your business address (this is the address you gave when you registered your freelance business ).You’re obliged to include the following information on every invoice you send: What information should your invoices include? Essential information In this article, we’ll go through everything that must be included on an invoice, so that you can create the perfect invoice. In order to send a legally compliant invoice as a freelancer in Germany, your invoices must include specific information about you, your client, and the service or product you delivered. But when freelancing in Germany, it’s important to make sure you invoice according to the governing laws here in order to get paid and be prepared to handle any future audits or questions from the tax office.Īn invoice is a legal document that needs to include a range of important information, whether it’s an invoice you receive for business expenses, or one that you create and send to your clients. So you’ve got your first client, you’ve delivered your first project, and you’re ready to get paid! Now it’s time to write your invoice! Managing invoices is an important aspect of freelance life, and if you’ve worked as a freelancer before, you may already be familiar with the process. ![]()
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