Writing an Invoice in English: Terms, Mandatory Details, Template

Published on 21 October 2026

In business, the English word for a Rechnung is almost always invoice. You are more likely to hear “bill” in a restaurant or for your electricity. A “receipt” confirms a payment that has already been made. If you are self-employed or run a small business in Germany and write an invoice in English, the right word alone is not enough. The German mandatory invoice details still apply, no matter which language the invoice is written in. Here you will find the most important terms, a translation table for all mandatory details, a complete template and the basic vocabulary for accounting in English.

In brief

Invoice is the standard term for a business invoice. A receipt only confirms a payment and does not replace an invoice.
An invoice in English is permitted in Germany. However, the Finanzamt (local tax office) can request a translation, because the official language is German.
All mandatory details under § 14 UStG also belong on the English invoice, including the Steuernummer (tax number) or USt-IdNr. (intra-EU VAT identification number) and a sequential invoice number.
Notes such as “Steuerschuldnerschaft des Leistungsempfängers” (reverse charge) or “Gutschrift” (self-billed invoice) are safest if you also write them in German.
Bilingual invoices (English and German) are the pragmatic route: the customer understands everything, and so does the Finanzamt.

Invoice, bill or receipt: which word is right?
The most important terms on an English invoice
Is an invoice in English allowed in Germany?
Mandatory details in German and English
Customers abroad: EU, non-EU countries and reverse charge
Template: what an English invoice looks like
Phrases for payment terms and reminders
Accounting in English: the basic vocabulary
Our view: language must not be a barrier in bookkeeping
English invoices and German bookkeeping in one tool
Frequently asked questions
Sources

Invoice, bill or receipt: which word is right?

The Cambridge Dictionary gives three translations for “Rechnung” in the sense of a statement of purchased goods or services: bill, check and invoice. Which word fits depends on the context:

English	Meaning	Typical use
invoice	Invoice in business transactions	Freelancer to agency, supplier to retailer, any B2B billing
bill	Invoice in everyday life	Restaurant (British), electricity, phone, tradesperson to private customers
check	Restaurant bill	US English: “Could we have the check, please?”
receipt	Receipt, proof of payment	Till receipt, confirmation after payment
pro forma invoice	Proformarechnung (pro forma invoice)	Quote in the form of an invoice, often for customs
credit note	Invoice correction, cancellation	Reduction or cancellation of an invoice

Invoice and receipt are the terms most often confused. According to Sicheres Englisch, a receipt is a confirmation of payment and not a request for payment. If you send a customer a “receipt” even though they still have to pay, they will rightly be puzzled.

Be careful with “credit note”, too. In English, this means a credit in the sense of an invoice correction. In German VAT law, however, “Gutschrift” means that the recipient of the service issues the invoice (in English “self-billing”). We explain how to correct an invoice properly in our guide to Stornorechnung and Rechnungskorrektur (cancellation and correction invoices).

The most important terms on an English invoice

You need this vocabulary for almost every English invoice. Literal translations such as “calculation number” for Rechnungsnummer look unprofessional. So it is worth taking a look at the list:

German	English
Rechnung	invoice
Rechnungsnummer	invoice number (Inv. No.)
Rechnungsdatum	invoice date / date of issue
Leistungsdatum, Lieferdatum	date of service / date of supply
Leistungszeitraum	service period
Fälligkeitsdatum	due date
Zahlungsziel	payment terms
Rechnungsempfänger	bill to / invoice to
Position	item
Beschreibung	description
Menge	quantity (Qty)
Einzelpreis	unit price
Nettobetrag	net amount / subtotal
Umsatzsteuer	VAT (value added tax)
Gesamtbetrag	total amount / total due
Restbetrag	balance / balance due
Steuernummer	tax number
Umsatzsteuer-Identifikationsnummer	VAT ID / VAT identification number
Bankverbindung	bank details
Verwendungszweck	payment reference
Rabatt, Skonto	discount, early payment discount

In the invoice header, simply write “Invoice”. British customers know the term VAT. In the USA there is no value added tax in the European sense; there, the sales tax is called “sales tax”. On your German invoice, however, it remains VAT, because you are charging German Umsatzsteuer (VAT).

Two formatting questions are often overlooked. The first concerns numbers: in English, the full stop separates the decimal places, so 1.200,00 € becomes EUR 1,200.00. Choose one format and stick to it. The second concerns the date: a Briton reads 03/04/2026 as 3 April, an American as 4 March. Write the month out, for example “21 October 2026”, and there will be no misunderstandings.

Is an invoice in English allowed in Germany?

Yes. Under § 14 UStG, any document used to bill for a supply of goods or other service is an invoice, regardless of what it is called in business. The law does not prescribe a particular language.

The limit is set by the Abgabenordnung, AO (German Fiscal Code). Under § 87 AO, the official language is German. The Finanzamt can request a translation of supporting documents and other documents in a foreign language. If you do not submit one, the authority can have them translated itself, at your expense. During a Betriebsprüfung (tax audit) involving dozens of English outgoing invoices, this quickly becomes a nuisance.

This leaves three practical options:

Invoice in English only: permitted, as long as all mandatory details are present and clearly recognisable. For customers abroad, this is usually sufficient.
Bilingual invoice: the fields are labelled in both languages, for example “Invoice No. / Rechnungsnummer”. This takes some work on the template once and saves you any translation later.
English invoice with German mandatory notes: the sensitive tax notes (reverse charge, tax exemption, Gutschrift) are additionally written in German.

We recommend option 2 or 3. Special cases such as services provided abroad are worth going through once with your tax advisor before you use the template for all customers.

Mandatory details in German and English

§ 14 Abs. 4 UStG requires these details for a complete invoice. The right-hand column shows how to label them on an English or bilingual invoice:

Mandatory detail under § 14 UStG	Label in English
Full name and address of the supplying business owner	Supplier / From: name and address
Full name and address of the recipient of the service	Bill to: name and address
Steuernummer or USt-IdNr. of the supplier	Tax number / VAT ID
Date of issue	Invoice date
Sequential, unique invoice number	Invoice number
Quantity and type of goods supplied, or scope and type of service	Quantity and description of goods or services
Date of the supply of goods or services	Date of supply / service period
Consideration, broken down by tax rate	Net amount by VAT rate
Tax rate and tax amount, or note on tax exemption	VAT rate and VAT amount, or reason for exemption
Agreed reductions of the consideration, such as an early payment discount	Agreed discounts
For a Gutschrift: the word “Gutschrift”	„Gutschrift“ (self-billing)

As a Kleinunternehmer (small business owner under the small-business VAT scheme), you do not show any Umsatzsteuer. Instead, you need a note on the tax exemption. In English, for example, “No VAT charged under section 19 UStG (small business exemption)” works well. Keep the section number so that any auditor can immediately see what you are relying on. You can find more on all mandatory details in our guide Writing invoices as a self-employed person. Where to get your Steuernummer and USt-IdNr. is explained in the article on Steuernummer and USt-IdNr.

Customers abroad: EU, non-EU countries and reverse charge

Most English invoices go abroad. Then the tax question is added to the language question, and it is the more important one.

Businesses in another EU country: For many cross-border B2B services, the reverse charge procedure applies. Here, the VAT liability passes from the supplier to the recipient of the service, as the Hamburg Chamber of Commerce explains. The invoice must then show the USt-IdNr. of both parties, no tax amount and the note on the recipient's tax liability. A proven wording is: “Reverse charge: VAT liability of the recipient / Steuerschuldnerschaft des Leistungsempfängers”. With both languages you are on the safe side, because the German wording is the one used by the law.

Reverse charge process and required invoice details

Businesses outside the EU (for example in the UK, Switzerland or the USA): For services to businesses, the place of supply is often abroad. In that case, you do not charge German Umsatzsteuer. A short note such as “Not taxable in Germany / Nicht im Inland steuerbar” makes the invoice comprehensible. Whether this applies to your order depends on the type of service: different rules apply to deliveries of goods, on-site seminars or services relating to real estate. Ask your tax advisor here.

English-speaking customers in Germany: An international start-up in Berlin or an English-speaking agency in Munich is, for tax purposes, a perfectly normal domestic customer. You charge German Umsatzsteuer as with any other order, just in English.

And the E-Rechnung (e-invoice)? Since 1 January 2025, the e-invoicing obligation generally applies to transactions between domestic businesses. There are transition periods for issuing. What matters is where the parties are based, not the language: the English invoice to the Berlin agency is covered, the one to the customer in London is not. We have summarised which deadlines apply to you in our guide to the E-Rechnung obligation.

Template: what an English invoice looks like

An example for a graphic designer from Leipzig working for an agency in Dublin (reverse charge; names and numbers are fictitious):

INVOICE / RECHNUNG

From:                     Bill to:
Anna Beispiel Design      Example Agency Ltd.
Musterstraße 12           10 Sample Street
04109 Leipzig, Germany    Dublin 2, Ireland
VAT ID: DE123456789       VAT ID: IE1234567X

Invoice No. / Rechnungsnr.:      2026-047
Invoice date / Rechnungsdatum:   21 October 2026
Service period / Leistungszeit:  1-30 September 2026
Due date / Fällig am:            4 November 2026

Item  Description                          Qty  Unit price   Amount
1     Logo design incl. 3 revisions          1  EUR 1,200.00 EUR 1,200.00
2     Social media templates                 6  EUR    80.00 EUR   480.00

Net amount / Nettobetrag:                              EUR 1,680.00
VAT / USt. 0 %:                                        EUR     0.00
Total due / Gesamtbetrag:                              EUR 1,680.00

Reverse charge: VAT liability of the recipient.
Steuerschuldnerschaft des Leistungsempfängers.

Payment terms: 14 days net. Please quote the invoice number.
Bank details: IBAN DE00 0000 0000 0000 0000 00, BIC XXXXDEXX

What stands out is what is missing: no tax amount and no 19 % tax rate. Instead, both USt-IdNrs. and the bilingual reverse charge note appear on the invoice. For a domestic customer, you would instead state your Steuernummer or USt-IdNr., the tax rate and the tax amount.

Phrases for payment terms and reminders

With these text snippets, your invoice will sound the way an English-speaking customer expects:

“Payment is due within 14 days of the invoice date.” (German: „Zahlbar innerhalb von 14 Tagen ab Rechnungsdatum.“)
“Please include the invoice number as payment reference.” (German: „Bitte die Rechnungsnummer als Verwendungszweck angeben.“)
“2 % discount if paid within 7 days.” (German: „2 % Skonto bei Zahlung innerhalb von 7 Tagen.“)
“Thank you for your business.” (A friendly closing, customary in English.)
“This is a friendly reminder that invoice no. 2026-047 is now overdue.” (Payment reminder, German: Zahlungserinnerung.)
“We have not yet received payment for the invoice below.” (German: „Wir haben noch keine Zahlung erhalten.“)

Polite but clear: English business letters usually do without the formal set phrases of German dunning letters. A clean, well-worded invoice comes across as professional to international customers. Preply also points this out in its glossary of accounting English.

Accounting in English: the basic vocabulary

If you work with international customers, co-founders or investors, you need more than invoice vocabulary. According to Linguee, accounting is the usual translation of Buchhaltung, and the department is called the accounts department. “Bookkeeping” more narrowly refers to the ongoing recording of business transactions.

German	English
Buchhaltung	accounting
Laufende Buchführung	bookkeeping
Forderungen, Außenstände	accounts receivable
Verbindlichkeiten gegenüber Lieferanten	accounts payable
Beleg	receipt / voucher
Einnahmen	income / revenue
Ausgaben	expenses
Vorsteuer	input VAT
Umsatzsteuer-Voranmeldung	advance VAT return
Einnahmenüberschussrechnung (EÜR)	cash-basis profit statement
Gewinn- und Verlustrechnung	profit and loss statement / income statement
Bilanz	balance sheet
Vermögenswerte, Eigenkapital	assets, equity
Abschreibung	depreciation
Kassenbuch	cash book

For balance sheet terms such as assets, liabilities and equity, italki offers a further overview. It is also worth looking across the border: the basic principles are similar throughout Europe, but terms and obligations differ from country to country. An article on the basics of bookkeeping for the self-employed shows what this looks like in the Netherlands. It explains how freelancers and small companies work there.

One more note on the EÜR (cash-basis income/expense statement): there is no fixed English equivalent for the German Einnahmenüberschussrechnung. If necessary, explain the term in half a sentence instead of inventing a translation that the other person might misunderstand.

Our view: language must not be a barrier in bookkeeping

We see every day how many self-employed people in Germany do not work in their native language: founders who have moved here from abroad, freelancers with international customers, teams with English as their common language. For them, German bookkeeping is doubly difficult. The rules are complicated, and they only half understand the terms.

We are convinced that the language you work in and the language the Finanzamt expects do not have to contradict each other. That is why we built Kontelio to be multilingual. You keep your books in the language you feel confident in. The content still follows German requirements, right up to submission via ELSTER (official e-filing portal).

For the English invoice, this means: do not rely on a translation that someone made at some point. Create a clean, bilingual template, check it once against § 14 UStG and then use it for every order. That saves more time than any translation app.

— Paulo

English invoices and German bookkeeping in one tool

With Kontelio, you write invoices, capture receipts by photo, create E-Rechnungen in ZUGFeRD and XRechnung format and prepare your Umsatzsteuer-Voranmeldung (periodic advance VAT return) and EÜR. The interface is available in several languages, including English. You manage customers and suppliers in one place. The Start plan costs €9.90 per month or €99 per year. You can test Kontelio free of charge for 30 days, without a credit card. You can find all plans on the pricing page.

Frequently asked questions

What is Abschlagsrechnung in English?

Common terms are “interim invoice”, “progress invoice” or “partial invoice”. An advance payment invoice issued before work begins is usually called an “advance payment invoice” or “deposit invoice”, and the final invoice a “final invoice”. How interim and final invoices relate to each other for Umsatzsteuer purposes is explained in our guide to the Abschlagsrechnung (interim invoice).

How do you say “Rechnung bezahlen” in English?

In business, you say “to pay an invoice” or, somewhat more formally, “to settle an invoice”. An open invoice is “outstanding” or “unpaid”, an overdue one “overdue”. In a restaurant, by contrast, it is “to pay the bill”.

Is a receipt an invoice?

No. A receipt is a confirmation that payment has already been made. An invoice requests payment and contains the mandatory details under § 14 UStG. For the input VAT deduction you generally need a proper invoice; a simple proof of payment is usually not sufficient for this.

Do I have to translate my English invoices for the Finanzamt?

Not as a precaution. However, the Finanzamt can request a translation under § 87 AO, for example during a tax audit. With fields labelled in both languages, you save yourself this effort from the outset.

Sources

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This article was machine-translated from German. Only the German version is authoritative.