Why is an invoice necessary

What information must an invoice contain?

No rule without exceptions - this also applies to the creation of invoices. There are some special rules that apply to small businesses, to invoices for small amounts or to invoices that are inadvertently issued incorrectly.

Small business regulation

This regulation means a simplification in sales tax law by allowing entrepreneurs with low sales to be treated like non-entrepreneurs in terms of sales tax law. Small business owners are still formally subject to the Value Added Tax Act, howeverthe tax office does not collect this tax. However, this means that these companies are excluded from the input tax deduction on invoices.

Small business regulation

The regulation applies to companies whose turnover plus the applicable tax in the previous calendar year was a maximum of 22,000 euros and is not expected to exceed 50,000 euros in the current calendar year.

This must be taken into account accordingly when issuing the invoice. A small business owner's invoice must still contain all mandatory information, but it may not show sales tax. In this case, the outgoing invoice only contains the gross value.

Smallest amount invoice

Special regulations apply if the total gross amount including sales tax should not exceed EUR 250. It was not until May 12, 2017 that the legislature raised this upper limit from originally 150 euros in accordance with the Bureaucracy Relief Act. In this case, the biller can send a "Smallest amount invoice“Make. According to Section 14 (6) UStG, this must contain the following information:

  • Full name of the biller
  • Full address of the biller
  • Date of invoice
  • Quantity and type of items delivered or the scope and type of service
  • Indication of the amount of the fee and the applicable tax amount in one sum
  • Applicable tax rate or reference to any existing tax exemption

Cancellation invoice

If the biller makes a typing error in the invoice, he not only has to correct the error, he is also obliged to keep the incorrect version. This is necessary because every invoice has a consecutive and unique invoice number and is therefore part of the seamless, internal company accounting system.

The cancellation invoice is thatMeans for correcting the original invoice and basically the opposite of this original invoice, which is why it is also known colloquially as a "credit note". It contains all information and data from the original invoice and has its own invoice number. The amount is only given a minus sign. This neutralizes the incorrect calculation.

Finally, a third, correct invoice with an additional invoice number must be created. The company delivers all three invoices to the customer and keeps the duplicates on time.

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