They are typically used in environments where many small amounts need to be processed quickly and efficiently: retail, food service, or trades with short service durations. Service providers such as hairdressers or cleaning companies also use them frequently. This invoicing format is a specific feature of German VAT law and not commonly found in other countries.
What Is a Simplified Invoice?
A simplified invoice is a streamlined version of a standard invoice, permitted for transactions with a low total amount.
If the gross amount – meaning the total including VAT – does not exceed €250, the invoice may be issued as a simplified invoice under German VAT law.
This regulation is designed to reduce administrative effort without compromising tax traceability. Especially in sectors with frequent, low-value transactions – such as retail or small-scale services – this format offers a practical advantage.
Note: This invoicing model is a specific feature of German VAT legislation.
Background: What Do the Simplified Invoice Rules Say?
Simplified invoices are not a tax exception but a clearly defined part of German VAT legislation. Two legal provisions are particularly relevant:
- Section 14 of the German VAT Act (UStG) outlines the general requirements for invoices.
- Section 33 of the VAT Implementation Regulation (UStDV) specifies the simplified requirements for invoices with low total amounts.
What does this mean in practice?
If the gross amount of an invoice does not exceed €250, certain details may be omitted, such as the recipient’s name and address or a sequential invoice number.
This simplification is intentional. It’s designed to reduce administrative effort for businesses that frequently issue low-value invoices. Think of supermarkets or other forms of brick-and-mortar retail, where hundreds of small transactions are processed daily.
But beware:
The rule doesn’t apply across the board. It only applies if the invoice is issued within Germany and no special tax conditions are involved, for example intra-EU deliveries or services provided to VAT-registered businesses.
Mandatory Information in a Simplified Invoice
Even though simplified invoices require fewer details than standard invoices, they’re not entirely free of formal requirements.
The simplified format is only valid if certain minimum information is included. These requirements are defined in Section 33 of the German VAT Implementation Regulation (UStDV). A simplified invoice must include the following information:
- Name and address of the supplying business
→ Who provided the goods or services? - Date of invoice issuance
→ When was the invoice created? - Quantity and type of goods delivered or nature and scope of the service
→ What was delivered or performed? - Gross amount (total including VAT)
→ How much was charged? - Applied VAT rate (e.g., 19% or 7%)
→ Which tax rate was used?
Alternatively, a note on tax exemption may be included, if applicable.
What Can Be Omitted?
Unlike standard invoices, the following details are not required:
- Name and address of the customer
- Sequential invoice number
- Separate VAT disclosure
This saves time, especially in high-volume transactions such as retail or small-scale services.
Important Note
The simplification does not always apply. A full invoice is required in the following cases:
- For intra-EU deliveries
- For services to VAT-registered businesses
- For cross-border services
Practical Tip:
Businesses that regularly issue simplified invoices should verify whether the simplified format is permitted in each specific case. An incomplete invoice may lead to disadvantages in VAT deduction.
Which Industries Use Simplified Invoices?
Simplified invoices are useful wherever many small amounts need to be processed quickly and efficiently. They are especially common in industries with high transaction volumes and low individual amounts.
- Retail: A supermarket receipt is the classic example. It meets all requirements of a simplified invoice: compact, compliant, and instantly available.
- Food service: Whether café, snack bar, or restaurant processes hundreds of small transactions are processed daily. The simplified invoice saves time and effort.
- Trades: For minor repairs or maintenance work, such as by electricians or plumbers, simplified invoices offer a practical solution.
- Service providers: Hairdressers, beauty salons, cleaning services, or mobile care providers often use them for on-site cash or card payments..
implified invoices are also used in e-commerce and digital service: for example, for downloads, streaming subscriptions, or microservices.
FAQ on Simplified Invoices
Do I need to archive simplified invoices?
Yes – for 8 years.
Simplified invoices are tax-relevant documents and subject to statutory retention requirements. The retention period is 8 years, starting by the end of the calendar year in which the invoice was issued.
What qualifies as proper archiving?
- Immutability: The invoice must not be altered after issuance.
- Readability: It must remain legible and accessible at all times.
- Format: Paper or digital, depending on how it was received.
- Systems: Audit-proof archiving systems such as DMS or accounting software are recommended.
Practical example:
A receipt for €19.90 for office supplies, booked as a business expense, qualifies as a simplified invoice. This document must be archived for 8 years, just like a standard invoice.
What happens if the amount exceeds €250?
In that case, the simplified invoice rule no longer applies. A full invoice must be issued, including all mandatory details, such as the customer’s name and address, a sequential invoice number, and a separate VAT disclosure.
Does the rule also apply to online orders?
Yes, under certain conditions: In e-commerce, invoices under €250 gross may be issued as simplified invoices, provided the delivery or service takes place within Germany.
Typical example: An online purchase of €49.90 from a German seller. The invoice includes the seller’s name, the date, item description, gross amount, and VAT rate, that’s sufficient.
Important:
For cross-border services or if the reverse-charge mechanism applies, a full invoice is required, regardless of the amount.
Disclaimer: This article is for informational purposes only and does not constitute legal advice in the strict sense.