E-invoicing: Sector-specific features in the skilled trades
This guide explains when e-invoicing applies, how Section 13b is implemented, and what needs to be taken into account for interim and final invoices.
Introduction
When it comes to e-invoicing, trades and construction services raise a number of questions: Does every invoice now have to be electronic? What applies in the case of reverse charge? And what about interim invoices? We’ll sort this out for you and handle the tax processing.
A clarification first, as there is a common misconception here:
Not every tradesman’s invoice has to be an e-invoice. You may continue to issue paper or PDF invoices to private homeowners. E-invoicing applies to business-to-business transactions.
Two specific features characterise the construction industry: the distinction between private and business customers, and the reverse-charge procedure under Section 13b of the German Value Added Tax Act (UStG). We cover both of these here.
This article explains when e-invoicing applies, how the reverse-charge mechanism is reflected in e-invoices, what needs to be included in the structured section, and what you need to bear in mind for interim and final invoices.
When e-invoicing applies in the skilled trades
The basic principle is simple: the e-invoicing requirement applies only to transactions between domestic businesses. The decisive factor is who you are invoicing.
You may continue to issue paper or PDF invoices to private homeowners – nothing changes here.
If, on the other hand, you are invoicing a business customer, such as a property developer or a main contractor, they will require an e-invoice once your transition period has expired.
We cover the relevant deadlines for you separately in this article:
The same electrician who sends a PDF to a private homeowner must issue an e-invoice for the same job carried out on a property developer’s office building. What matters is the type of customer – not the nature of the work.
Reverse charge under Section 13b of the German Value Added Tax Act (UStG) (subcontracting arrangements)
In the construction sector, there is often a special provision regarding VAT: the reverse charge mechanism. Under this system, it is not the tradesperson carrying out the work who is liable for VAT, but the client.
This applies to construction work carried out for a contractor who themselves provide construction services on a permanent basis. This can be identified by the client’s certificate (USt 1 TG or exemption certificate).
In this case, you should issue a net invoice, excluding VAT, and include the mandatory notice stating that the recipient of the service is liable for VAT. If this notice is missing, the invoice is incomplete.
Pure property developers, who purchase land, develop it and sell the finished properties, do not provide construction services for VAT purposes – you should invoice them including VAT. However, many property developers also act as main contractors and carry out construction work themselves; in such cases, Section 13b applies. If in doubt, ask to see the certificate before issuing a net invoice.
Section 13b in e-invoices
The good news is that even a reverse-charge transaction can be processed as an e-invoice. The structured format includes a field to indicate that the recipient is liable for VAT.
Specifically, in the e-invoice, the reverse-charge identifier is set in place of a tax rate and tax amount, and the mandatory notice is included. You do not need to worry about the technical details – suitable invoicing software will set the identifier correctly when you create the transaction as a Section 13b case.
The key point is that the notice must appear in the structured section and not merely in an attachment. We cover which programmes generate e-invoices in separate articles.
What belongs in the structured section
In the construction sector, invoices are often extensive – containing quantity surveys, itemised lists and specifications of works. For e-invoices, a distinction must be made between what must be included in the structured section and what can be attached as an annex.
The mandatory VAT details must be included in the structured section. For the description of works, the trades and totals are sufficient there; you can attach a detailed bill of quantities or a comprehensive specification of works as an attachment.
However, please ensure that all mandatory details are included in the structured section and are not moved to the attachment.
Interim and final invoices
In the construction industry, invoicing is often carried out in instalments, followed by a final invoice. There is a specific point to bear in mind here at present.
Progress invoices can be issued as e-invoices. When it comes to the final settlement, it is important to bear in mind that the structured formats do not yet fully reflect a traditional final invoice showing the deduction of the individual progress payments.
In practice, it is therefore often advisable to issue a final statement, or to include the instalments in an attachment to which the structured part refers.
We cover how advance payments and instalments work in detail separately:
What about receipt?
Issuing the invoice is only half the job. As a business, you must be able to receive incoming e-invoices – for example, from suppliers, building materials suppliers or subcontractors.
To receive them, all you need is an email inbox at the very least; we or your software will handle the processing.
Submission to us
For processing, we require the original structured data from your outgoing and incoming invoices, including reverse-charge cases – not just the visible PDFs.
The data is transferred via the method agreed with us, such as DATEV Unternehmen online or a dedicated upload address. We will deal with the process of sending data to us separately. \[Link zu einem Hilfsartikel] Please let us know in which cases you invoice in accordance with Section 13b so that we can classify the VAT correctly.
Common sources of error
- Assuming e-invoices are required for private customers: It is often assumed that even homeowners need an e-invoice. However, paper or PDF invoices remain permissible for private customers.
- § 13b notice omitted: In the case of reverse charge, the notice stating that the recipient is liable for VAT is missing. The invoice is then incomplete.
- Reverse charge applied incorrectly: Invoices to a pure property developer are issued net, even though they should include VAT. Caution is advised without a certificate.
- Mandatory details in the annex: Details of services are transferred in full to an attached schedule of works. The mandatory details belong in the structured section.
- Final invoice incorrectly presented: A standard final invoice with deductions for instalments is incorrectly submitted as an e-invoice. In such cases, a final statement is often the appropriate solution.
- Only the PDF is submitted: The visible PDF is used for submission to us. We require the structured data.
How we work together
In the construction sector, you create the invoices tailored to the customer type and VAT status; we handle the processing.
Your tasks:
- Usually invoice private customers as standard; invoice business customers as e-invoices
- Correctly flag reverse-charge cases and obtain certificates
- Provide us with the structured data via the agreed method
Our responsibilities:
- Check and classify VAT and reverse-charge cases
- Post the supporting documents and process them for tax purposes
- Provide support regarding Section 13b, advance payments and formatting issues
We will agree the exact breakdown with you.
Frequently asked questions
Do I have to issue e-invoices to private customers?
No. You may continue to issue paper or PDF invoices to private homeowners. The e-invoicing requirement applies to business-to-business transactions.
When does Section 13b (reverse charge) apply?
For construction services provided to a business that itself carries out construction work on a permanent basis – as indicated by the USt 1 TG certificate. In this case, you should issue a net invoice, stating that the recipient is liable for the tax.
Can a Section 13b invoice be an e-invoice?
Yes. The structured format includes a field indicating the recipient’s liability for VAT. Suitable software will populate this field when you create the transaction as a Section 13b case.
Does the entire bill of quantities have to be included in the structured section?
No. The structured section must contain the mandatory details; for the description of services, it is sufficient to list the trades and totals. You can attach a detailed bill of quantities as an annex.
How do I settle interim payments and the final invoice?
Interim invoices can be created as e-invoices. For the final settlement, a ‘balance invoice’ is often the best option at present, as the final invoice showing the deduction of interim payments cannot yet be fully represented in the structured format.
To a property developer – with or without VAT?
Pure property developers receive an invoice including VAT. If the property developer is also the main contractor and carries out construction work themselves, Section 13b applies. If in doubt, request a certificate.
How do my construction invoices reach you?
Via the agreed method, usually DATEV Unternehmen online or an upload address. It is important that the structured data reaches us. \[Link zu einem Hilfsartikel]
Legal notice
This article provides an overview and does not replace individual advice. The treatment of construction services and reverse-charge cases depends on the individual circumstances; the current legal situation is decisive.
If you have any questions regarding your construction and trades invoices, please contact us directly.
As at: June 2026