Writing Invoices for Small Businesses: Guide with Templates

You've just started your small business and need to write your first invoice? This guide explains step by step what to look out for.

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Small Business vs. Regular Business

Small Business Regulation (§19 UStG)

If you use the small business regulation:

• Revenue under €22,000 in the previous year
• Expected revenue under €50,000 in the current year
• No VAT to be shown on invoices

Important Note on Invoices

With small business regulation you must include this text:

"Pursuant to §19 UStG, no VAT is charged."

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Mandatory Information on Invoices

For All Invoices

Additional for Regular Businesses

• VAT rate (19% or 7%)
• VAT amount
• Gross amount

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The Invoice Number

Requirements

• Unique (each number only once)
• Consecutive (no gaps if possible)
• Traceable (logical system)

Recommended Formats

Important: Gaps in numbering are fine, but the tax office might ask questions.

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Small Business Invoice: Example

Max Müller
Hauptstr. 1
10115 Berlin
Tax no. 123/456/78901

                                    Berlin, December 22, 2025

XY GmbH
Ms. Anna Schmidt
Musterweg 5
80331 München

Invoice No. 2025-042

Service Period: December 2025

Description                                Amount
-------------------------------------------------
Website creation incl. 5 subpages       €1,500.00
Hosting setup (annual)                    €120.00
-------------------------------------------------
Total                                   €1,620.00

Pursuant to §19 UStG, no VAT is charged.

Please transfer the amount within 14 days to:
IBAN: DE89 3704 0044 0532 0130 00
BIC: COBADEFFXXX
Reference: Invoice 2025-042

Thank you for your order!

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Common Errors and How to Avoid Them

Error 1: Missing Small Business Note

❌ Wrong: No note about §19 UStG ✅ Correct: "Pursuant to §19 UStG, no VAT is charged."

Error 2: Showing VAT Anyway

❌ Wrong: "Net €1,500 + 19% VAT = €1,785" ✅ Correct: "Total €1,500.00"

Error 3: Vague Service Description

❌ Wrong: "Work in December" ✅ Correct: "Website creation incl. 5 subpages according to offer of Dec 1, 2025"

Error 4: Missing Invoice Number

❌ Wrong: No invoice number ✅ Correct: "Invoice No. 2025-042"

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Payment Terms

Recommended Wording

• "Payable within 14 days of invoice date"
• "Payable immediately without deduction"
• "2% discount for payment within 7 days, otherwise 30 days net"

Tip for Faster Payments

1. Offer multiple payment methods
2. State bank details clearly
3. Include reference for transfer
4. Consider online payment links

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Invoice Correction

What If There's an Error?

1. Never delete the original invoice
2. Create a credit note for cancellation
3. Issue a new invoice with new number

Credit Note Example

Credit Note No. 2025-G001
for Invoice No. 2025-042 of December 22, 2025

The invoice is cancelled in full.
Credit amount: €1,620.00

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Storage Requirements

Duration

• All invoices: 10 years
• Both issued and received invoices
• Digital storage is permitted

Format

• Paper: Store original
• Digital: GoBD-compliant storage
• Emails: Save with invoice

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With or Without Small Business Regulation?

Advantages of Small Business Regulation

✅ Less bureaucracy ✅ No VAT returns ✅ Better prices for private customers

Disadvantages

❌ No input VAT deduction ❌ Appears less professional ❌ Revenue limit of €22,000

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Conclusion

1. Include all mandatory information → See checklist above
2. Add small business note → §19 UStG reference
3. Use consecutive invoice numbers → Year-Number format
4. Store for 10 years → Digital is OK

With Clever Invoice you can create professional invoices for your small business in seconds - with all mandatory information automatically included.