{"id":7358,"date":"2026-04-10T08:21:57","date_gmt":"2026-04-10T06:21:57","guid":{"rendered":"https:\/\/www.jimdo.com/blog\/?p=7358"},"modified":"2026-04-10T16:53:35","modified_gmt":"2026-04-10T14:53:35","slug":"invoice-terms-for-freelancers-the-essential-glossary-2026","status":"publish","type":"post","link":"https:\/\/www.jimdo.com/blog\/invoice-terms-for-freelancers-the-essential-glossary-2026\/","title":{"rendered":"Invoice Terms for Freelancers: The Essential Glossary (2026)"},"content":{"rendered":"\n

Invoice Terms for Freelancers: All Key Terms Simply Explained<\/strong><\/h1>\n\n\n\n

E-invoicing, GoBD, input tax deduction, small business regulation \u2013 anyone who becomes self-employed will sooner or later encounter terms that sound like someone invented them to discourage people from starting a business. But many of these terms aren\u2019t optional. If you don\u2019t know them, you risk incorrect invoices and trouble with the tax office.<\/p>\n\n\n\n

This guide explains the most important terms \u2013 without legalese, with concrete examples. You\u2019ll learn what each term means, when it becomes relevant for you, and how a good invoicing tool takes most of the work off your hands.<\/p>\n\n\n\n

Terms Related to Invoices<\/strong><\/h2>\n\n\n\n

Mandatory Invoice Information<\/strong><\/h3>\n\n\n\n

In Germany, \u00a714 UStG (VAT Act) specifies what must appear on an invoice; in Austria, \u00a711 UStG 1994 governs mandatory information \u2013 the content requirements are largely identical. This includes: name and address of both parties, tax number or VAT ID number, invoice date, sequential numbering, description of services, net and gross amounts, tax rate, and date of service. Sounds like a lot \u2013 a good invoicing tool fills in most of it automatically once you\u2019ve entered your master data.<\/p>\n\n\n\n

Sequential Invoice Number<\/strong><\/h3>\n\n\n\n

Every invoice needs a unique, sequential number \u2013 no gaps, no duplicates. The number doesn\u2019t have to start at 1: \u201c2026-001\u201d is just as valid as \u201cR001.\u201d The key thing is: unique and traceable. Errors almost only happen with manual numbering \u2013 an invoicing tool prevents this automatically.<\/p>\n\n\n\n

Invoicing Obligation<\/strong><\/h3>\n\n\n\n

In B2B transactions, there is always an obligation to issue an invoice \u2013 your client needs the invoice for input tax deduction. In B2C transactions, the obligation applies in Germany only from \u20ac250, in Austria from \u20ac400. Below those thresholds, simplified requirements apply \u2013 more on that under \u201cSmall-amount invoice.\u201d<\/p>\n\n\n\n

Small-Amount Invoice (\u00a733 UStDV)<\/strong><\/h3>\n\n\n\n

For invoices up to \u20ac250 gross (in Austria: \u20ac400), simplified mandatory information applies. Instead of the full details per \u00a714 UStG, the following suffices: full name and address of the invoice issuer, date of issue, quantity and type of service, gross amount (net + tax in one sum), tax rate (or reference to tax exemption, e.g., under the small business regulation). Details such as invoice number, tax number, or the recipient\u2019s name are not required for small-amount invoices. Whether an automatically generated payment receipt \u2013 for example from Stripe or PayPal \u2013 meets these requirements depends on the specific content. When in doubt, you\u2019re on the safe side with a Jimdo invoice.<\/p>\n\n\n\n

Small Business Regulation (\u00a719 UStG)<\/strong><\/h3>\n\n\n\n

If your revenue was less than \u20ac22,000 in the previous year and you stay below \u20ac50,000 in the current year, you can use the small business regulation: no VAT shown on your invoices. But be careful: every invoice must include a note indicating that the regulation applies. If it\u2019s missing, the tax office can still demand the tax.<\/p>\n\n\n\n

Example wording:<\/strong><\/p>\n\n\n\n