In short:
- An IT freelancer's invoice needs the same mandatory details as any other (§ 14 UStG). Specifics arise with hourly billing, milestone projects and foreign clients.
- For domestic clients you generally charge 19 % VAT unless you are a small business.
- For businesses in the EU, reverse charge usually applies: no German VAT, both VAT IDs and the note "Steuerschuldnerschaft des Leistungsempfängers".
- For invoices to domestic businesses e-invoicing is being phased in; a plain PDF will no longer be enough.
Who is this for?
Developers, consultants, admins and other IT self-employed people who bill businesses directly. Whether you count as a freelancer (§ 18 EStG) or as a trade business is decided by the tax office based on your actual activity. The invoice format is the same either way. Consumer clients can trigger different rules that are not covered here.
What mandatory details belong on the invoice?
§ 14(4) UStG requires, among other things:
- full name and address of you and your client
- your tax number or VAT ID
- issue date and a unique, consecutive invoice number
- type and scope of the service
- time of supply (date or service period)
- net amount, VAT rate and VAT amount, or a note on a tax exemption
For services a service period ("01–31 Oct 2026") usually replaces a single date. See how to assign invoice numbers.
Hourly rate, fixed price or milestones?
Your contract decides how you bill. The invoice must make the service traceable:
- Hourly: hours, hourly rate and period. A timesheet attachment is common and prevents questions.
- Fixed price: project name and, if agreed, the milestone reached.
- Partial invoices: mark them clearly as such and deduct them in the final invoice (list earlier invoices with number and amount).
- Recurring services (maintenance, hosting, retainer): period and description per invoice.
Example line: "API integration for payment provider, 24 h × €95.00 = €2,280.00, service period 01–31 Oct 2026, project web shop relaunch".
Client in Germany, the EU or a third country?
The place of supply drives VAT. For services to businesses it is generally where the client is established (§ 3a(2) UStG).
| Client | VAT on invoice | Notes |
|---|---|---|
| Business in Germany | Generally 19 % (unless § 19 UStG) | E-invoicing phased in, see below |
| Business in another EU state | Generally no German VAT (reverse charge) | Both VAT IDs, reverse-charge note, recapitulative statement |
| Business in a third country (e.g. USA, UK, Switzerland) | Generally no German VAT (not taxable in Germany) | Note on place of supply recommended; local rules may apply |
| Private individual | Different rules may apply | Check case by case |
For the EU case the invoice is due by the 15th day of the month following the supply (§ 14a UStG). More on the procedure: reverse charge explained.
Important: check your EU client's VAT ID before you invoice without VAT. A reverse-charge invoice without a valid number can lead to back claims.
Do not forget the recapitulative statement
If you provide taxable services to businesses in other EU states, you usually report them to the Federal Central Tax Office in the recapitulative statement (Zusammenfassende Meldung). For pure services the quarterly cycle applies with filing by the 25th day after quarter end (§ 18a UStG). If you only work domestically you need none. Small businesses are generally exempt.
Small business invoices
As a small business under § 19 UStG you show no VAT and refer to § 19 UStG. For the current thresholds (€25,000 prior year, €100,000 current year) and all mandatory details see invoices for small businesses.
E-invoicing: what changes for IT freelancers?
For supplies between domestic businesses:
- Receiving: since 1 January 2025 businesses must be able to receive e-invoices.
- Issuing: paper and PDF invoices remain permitted during the transition until 31 December 2026, until 31 December 2027 for businesses with prior-year turnover up to €800,000, and from 1 January 2028 for everyone.
- Format: an e-invoice is a structured data set under EN 16931 (XRechnung or ZUGFeRD). A normal PDF does not count.
According to the BMF letter, invoices to foreign clients are not covered by the duty. Whether a foreign client wants a specific format is a contractual matter. You can check a file for mandatory fields with the e-invoice validator. Deadlines in detail: e-invoicing duty 2025–2028.
Common mistakes
- VAT charged although reverse charge applies. You still owe it (§ 14c UStG).
- Missing service period, or just "project as per quote".
- Invoice numbers with gaps or duplicates.
- EU client's VAT ID not checked.
- Recapitulative statement forgotten.
FAQ
Does an IT freelancer have to show VAT on the invoice? For domestic business clients usually yes (19 %), unless you are a small business under § 19 UStG. For business clients in the EU or outside the EU, German VAT is generally not shown because the place of supply is the recipient's country (§ 3a(2) UStG).
What must the invoice to an EU client state? Both VAT IDs and the note "Steuerschuldnerschaft des Leistungsempfängers" (reverse charge). Under § 14a UStG the invoice is due by the 15th day of the following month.
Do I need a recapitulative statement? If you provide taxable services to businesses in other EU states, generally yes. It is normally filed quarterly by the 25th day after quarter end (§ 18a UStG). Small businesses are generally exempt.
Do I have to issue e-invoices from 2027? For invoices to domestic businesses the duty phases in: transitional rules until end of 2026, until end of 2027 for businesses with prior-year turnover up to €800,000, and from 1 January 2028 for everyone. You have had to be able to receive e-invoices since 1 January 2025.
Conclusion
A clean IT invoice has a clear service description, a service period, the right VAT treatment for the client's location and, for EU clients, the reverse-charge note plus the recapitulative statement. Use the invoice generator for IT freelancers to create a PDF invoice with hourly rates, or pick a template for IT consultants.
