A note on “AI”: in this category it mostly means automation (auto-numbering, VAT calculation, receipt matching, e-invoice formatting). I’ll flag where a tool claims more.
What a German invoice must contain
An invoice above €250 gross needs the following under §14 UStG:
- Full name and address of you and your customer
- Your Steuernummer or USt-IdNr.
- Issue date and a unique, sequential invoice number
- Description and quantity of the service, and the date of service
- Net amount, the VAT rate (generally 19%, or 7% for certain services), and the VAT amount
Small invoices: invoices up to €250 gross have simplified requirements.
Kleinunternehmer: if you use the §19 UStG exemption, you charge no Umsatzsteuer. Most sources say your invoice needs a note such as “GemĆ¤Ć § 19 UStG wird keine Umsatzsteuer berechnet.” The Hamburg Chamber of Commerce says the note isn’t strictly required (and neither is an invoice number for Kleinunternehmer) but recommends it. Include both to be safe. Never show VAT on a §19 invoice, because you would owe it to the Finanzamt under §14c UStG.
Thresholds: the exemption applies if prior-year net turnover was €25,000 or less and current-year turnover stays at €100,000 or less. A few older guides still show €22,000 and €50,000, which are outdated.
EU business customers: invoices to businesses in other EU countries may need a reverse-charge note. Check this with your Steuerberater.
The e-invoice timeline (your tool must keep up)
Since 1 January 2025, every business must be able to receive e-invoices. Issuing requirements follow, with the e-invoice deadlines as follows:
- From 2027: businesses with prior-year turnover above €800,000
- From 2028: all businesses (Kleinunternehmer are exempt from issuing but still must receive)
Plain PDF invoices stop counting as proper VAT invoices for in-scope businesses once their deadline passes. Check that any tool you pick supports XRechnung or ZUGFeRD.
Quick comparison
| Tool | Price (net/month) | Free Option | E-Invoice Formats | Umsatzsteuer Handling | Best For |
|---|---|---|---|---|---|
| sevDesk | ~€8.90–12.90 (invoicing tier) | Free tier, 3 invoices/month | XRechnung, ZUGFeRD | VAT calculation; ELSTER VAT filing on bookkeeping tiers | Automation |
| Lexware Office | ~€7.90 (S) to ~€32.90 (XL) | Trial only | XRechnung, ZUGFeRD | VAT filing via ELSTER | Established all-rounder |
| FastBill | ~€9–10 | Trial only | XRechnung | VAT calculation, DATEV export | Invoice-heavy workflows |
| Papierkram | Free; paid from ~€9.90 | Yes, unlimited invoices | Supported | VAT filing on paid plans | Project and time-based billing |
| Norman | Reportedly free invoicing; filing from ~€9 | Yes | ZUGFeRD | Included | Hands-off freelancers |
Prices vary across sources and change often, so confirm them on each provider’s site.
The tools
sevDesk
sevDesk offers a free tier capped at three invoices a month, and an invoicing plan with unlimited invoices. It supports XRechnung and ZUGFeRD and exports to DATEV. VAT filing and receipt capture come with its bookkeeping tier, not the invoicing plan.
Good for: Freelancers who want invoicing that can grow into full bookkeeping.
Lexware Office
Lexware Office (formerly Lexoffice) is the market standard, with S at about €7.90 and higher tiers adding features. Two flags: one review says the cheapest tier barely covers bookkeeping, and another says e-invoice sending may only be in higher tiers. Confirm which plan includes e-invoice sending.
Good for: Freelancers who want the best-known tool and work with a Steuerberater.
FastBill
FastBill focuses on fast invoicing, with plans from about €9–10 a month. It supports XRechnung, and one review says its entry plan is limited to 20 invoices a month. It reviews well for ease of use.
Good for: Freelancers who mainly send invoices and don’t need heavy bookkeeping.
Papierkram
Papierkram’s free plan allows unlimited quotes and invoices with time tracking. EĆR, VAT filing, DATEV export, and bank connection need a paid plan.
Good for: Project-based freelancers who bill hours.
Norman
Norman is a newer entrant that says invoicing and bookkeeping are free, with fees only for tax filing. Most of the detail I found came from Norman’s own articles, so I’d confirm its free tier and current limits directly before relying on it.
Good for: Freelancers willing to try a newer tool built around automation.
Which one should you choose?
- Kleinunternehmer sending a few invoices a month: Papierkram’s free plan or sevDesk’s free tier.
- VAT-registered, want one tool that grows: sevDesk or Lexware Office.
- Mostly invoicing, little bookkeeping: FastBill.
- Billing by project or hour: Papierkram.
- Want invoicing plus automated filing: try Norman, after verifying its terms.
FAQ
Do I need to charge Umsatzsteuer as a freelancer?
Not if you qualify as a Kleinunternehmer under §19 UStG. Otherwise you charge VAT, generally 19%, or 7% for certain services.
What happens if I show VAT as a Kleinunternehmer?
You owe that VAT to the Finanzamt under §14c UStG, even though you’re exempt.
Is a PDF invoice still valid?
For now, in most cases. Once your e-invoice deadline passes (2027 for larger businesses, 2028 for everyone else), a plain PDF no longer counts as a proper VAT invoice for in-scope transactions.
Do I need separate software for invoicing and filing?
Not necessarily. Many tools combine them, but some only prepare data. See our Elster filing guide.
Last updated: October 2026. This post is for informational purposes only and isn’t tax or legal advice. Consult a licensed German Steuerberater for guidance specific to your situation.
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