Germany: Increase in the threshold for small amount invoices

With retroactive effect from 1 January 2017, the threshold for invoices for small amounts has been raised to EUR 250 (gross). Previously the threshold was EUR 150 (gross).

The threshold for invoices for small amounts is meant to simplify the input VAT deduction. Generally, input VAT can only be deducted if the taxpayer is in possession of a correct invoice which contains all necessary invoice details mentioned in sec 14 para 4 German VAT Act. Small invoices only need to contain a reduced number of the general invoice details. For example, it is not necessary for small invoices to state the recipient of the invoice or a separate VAT amount. However, the special regulations for invoices on small amounts do not apply in cases of distance selling, intra-Community supplies of goods or the application of the reverse charge mechanism.