Writing Invoices as a Freelancer – Template from Your Tax Adviser

Your business partners are also subject to periodic tax audits, during which tax officials will examine your invoices. Defective invoices have an immediate negative impact on your clients: the tax authority will refuse their input tax deduction. Your clients therefore also have an interest in ensuring that your invoices meet all the minimum requirements for a valid invoice. The statutory basis is found in § 14 of the VAT Act (UStG).

Correct invoicing is a central challenge for freelancers. An invoice template for freelancers in PDF or Word format makes this task easier. Download a template from your Guhr Steuerberatung. You then customise the document to suit your needs. Bear in mind the different requirements that apply to Kleinunternehmer and to low-value invoices (Kleinstbetragsrechnungen).

The statutory requirements for correct invoices include various mandatory particulars. Every invoice you issue should contain the following:

- Name and address of the supplier and the recipient of the supply

- Your tax number or VAT identification number

- Invoice date

- Sequential invoice number

- Scope and nature of the supply

- Consideration broken down by tax rate

- The applicable tax rate and the specific tax amount for each line

- Any agreed reduction (e.g. early-payment discount)

Do you issue low-value invoices (Kleinstbetragsrechnungen) up to 250 euros? Do you operate under the Kleinunternehmer scheme? Different rules then apply. You will find the details in the sections below.

When issuing invoices, two situations must be distinguished:

- You issue invoices because you are legally obliged to do so. This obligation applies to all transactions with other businesses and legal persons such as bodies under public law, where a taxable supply is involved. You must also issue invoices to private individuals when you provide services relating to land and buildings.

- You issue invoices voluntarily. In the private client business there is generally no obligation to issue an invoice, yet many freelancers send one anyway. This demonstrates your professionalism — many clients appreciate receiving an invoice.

The rules on correct invoicing are set out in the VAT Act, from which the purpose of these provisions can be inferred. Invoices in B2B transactions serve to support input tax deductions and to calculate the VAT amounts due. When you as a freelancer issue an invoice to another business, your client can claim an input tax deduction. In practice, this means: for the client it is a pass-through item — they can reclaim the VAT.

Input tax deductions can be open to abuse. Tax offices therefore verify, in the course of tax audits, whether input tax deductions have been claimed correctly. For this, a proper invoice containing all mandatory particulars is required.

Have you, as the supplier, issued a defective invoice? Your client is the one who suffers — the tax office will deny them the input tax deduction. The issuer of the invoice usually faces no direct negative consequences, but indirectly this can be fatal: clients will not be pleased and may discontinue the business relationship.

Even without any intervention by the tax office, your reputation as a freelancer can suffer if you produce defective invoices. Many businesses check invoices as a matter of course. If they find errors, they request a correction. Whilst this is straightforward, it creates additional work for all parties involved.

Must you draft every invoice individually in a Word document? Fortunately, the answer is no. You have two options:

- Use invoicing and accounting software.

- Download an invoice template for freelancers as a Word or PDF document.

Your Guhr Steuerberatung provides you with an invoice template for freelancers — free of charge. This template contains all mandatory particulars and is laid out in a clear, easy-to-follow structure. You will of course need to enter your own details such as the nature of the supply, invoice amounts and date of issue. You nonetheless benefit from a significant advantage: thanks to this template, you will never forget a mandatory entry. Your workload is also reduced, as the basic framework for a correct invoice is already in place.

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When using an invoice template, make sure you include all the particulars required in your specific case. Also observe the precise legal requirements: invoice line items subject to different tax rates must, for example, be shown separately. If you supply services at both the full and reduced VAT rate, you must indicate this clearly. The same applies where your invoice includes VAT-exempt supplies.

The mandatory particulars listed above apply to standard invoices. There are exceptions in two situations:

- Kleinunternehmer under § 19 UStG: You are exempt from VAT and must therefore not show VAT on invoices. In this case, indicate this transparently — all other requirements for a proper invoice continue to apply.

- Low-value invoices (Kleinstbetragsrechnungen) up to 250 euros gross: these invoices require fewer mandatory particulars.

A combination is also possible: many Kleinunternehmer issue low-value invoices.

If you are recognised as a Kleinunternehmer, your invoices contain no VAT. All related obligations fall away: you do not need to break down invoice items by tax rate, and you state neither tax rates nor tax amounts.

It is advisable, however, to make this clear with a brief, concise statement. Reference the legal basis directly. Typical wordings include, for example:

- "Pursuant to § 19 UStG, this invoice does not include VAT."

- "No VAT shown, as the small-business (Kleinunternehmer) scheme under § 19 UStG applies."

Your invoice template for freelancers in PDF or Word format includes a corresponding form of words.

For invoice amounts of up to 250 euros gross, the legislator simplifies the invoicing requirements. The following particulars are sufficient:

- Name and address of your business

- Date of issue

- Scope and nature of the supply

- Consideration plus tax amount as a single total

- Tax rate

Compared with a standard invoice, your workload is significantly reduced. You do not need to state the name or address of the recipient, for example. It is also sufficient for your invoice to show a single total amount inclusive of the tax amount — there is no requirement to show the tax amounts separately. Instead, simply indicate which tax rate was used to calculate the total. You are not required to state your tax number either.

Our invoice template for freelancers gives you practical help with issuing invoices. Our services extend far beyond that, however: experienced staff advise you on all questions relating to invoices, VAT and bookkeeping. Contact your trusted tax advisory firm for freelancers and take advantage of our services — available nationwide.