It's no secret that freelancing in Germany comes with a number of challenges, and that chief among them are income and tax issues.
These can be particularly difficult for new arrivals and foreigners in Germany who may not know how the rules differ here compared to their home country, and have little experience navigating the bureaucracy.
If you're new to freelancing in Germany, or still have questions about billing and taxes, here's a look at everything you should include on your invoices.
First get a tax number
Before you begin invoicing as a freelancer in Germany, you'll need to have a tax number (Steuernummer). Note that this is different from your tax ID number (Steuerliche Identifikationsnummer or Steuer-IdNr.), which is assigned to every resident in Germany.
If you haven't previously filed taxes in Germany, you probably don't yet have a tax number.
To get one, you'll need to submit a "questionnaire for tax collection" (Fragebogen zur steuerlichen Erfassung) with your local tax office (Finanzamt).
(To find your local tax office, visit Behördenwegweiser, select Finanzamt, and enter your postcode.)
In comparison with other public authorities in Germany, a visit to the Finanzamt can be relatively straightforward -- it’s generally possible to visit during office hours and expect to see someone within an hour.
Once you have your tax number, you’re ready to start invoicing.
What information do you need to include on an invoice in Germany?
In Germany, invoices need to be issued within six months after a service was provided. Also they need to be kept for ten years! The tax office can demand to see invoices dating back a decade to check for irregularities.
A recommended best practice is to write your invoices in both German and the language in which you provided the service, where applicable.
All invoices need to include the following information:
- your name and address
- the name and address of the invoicee
- the date of invoice
- a description of when you provided the service(s)
- a description of the service(s) provided and the volume of service(s) provided
- your Tax ID Number (Steuernummer)
- an invoice number (You're free to choose how you want to number invoices, but the tax office seems to prefer a logical sequence such as 2025/001, 2025/002.)
- the sales tax rate as well as the net and gross amount if applicable
READ ALSO: Do employees in Germany have to declare tax on a side job?
What to know about VAT
In addition to income tax, many freelancers in Germany also have to pay sales tax (or VAT), known as Umsatzsteuer in German. The current rate is 19 percent.
In practice, this means quoting your clients the sum you expect to be paid as the net sum (Netto), and adding a 19 percent VAT charge.
However, there are some exceptions to this rule. Most importantly, freelancers making less than €22,000 in their first year and less than €50,000 in their second year are not required to pay (or charge) VAT.
Also, you don't always need to include VAT for clients based outside of Germany. The rules here vary from country to country, so you should check what information you need to include on these invoices.
For example, invoices bound for the UK are usually okay with a note on the invoice that VAT is not applicable. For the US, the rules are more complicated as tax rates and procedures can vary from state to state.
READ ALSO: The planned money and tax changes in Germany in 2025
Useful vocabulary
Leistungszeitraum
Service period
Bezeichnung
Description
Zwischensumme Netto
Subtotal Net
Umsatzsteuer
Sales tax
Gesamt Summe
Total
Ich bedanke mich für die Beauftragung und erlaube mir die erbrachten Leistungen in Rechnung zu stellen.
Thank you for commissioning me for this work. Here is the invoice for services rendered.
Ich bitte Sie die Summe innerhalb von 30 Tagen auf das unten genannte Konto zu überweisen
Please transfer the total amount to the account specified below within 30 days.
READ ALSO: The complete guide to getting a freelance visa in Germany
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