German Invoice Types: Abschlagsrechnung to Schlussrechnung

Germany's invoicing framework is not a single-document system. German invoice types are defined and governed by specific provisions of the Umsatzsteuergesetz (UStG) and the Bürgerliches Gesetzbuch (BGB), and each type carries distinct VAT treatment, payment timing rules, and processing requirements that international professionals need to understand precisely.

The types of German invoices break down as follows:

Rechnung — the standard invoice for a completed delivery of goods or services.
Abschlagsrechnung — a progress invoice requesting payment for work performed to date, governed by BGB §632a. VAT is triggered on receipt of payment, not on issuance.
Teilrechnung — a partial invoice issued for a completed, self-contained sub-deliverable within a larger project. Unlike the Abschlagsrechnung, VAT is triggered on delivery.
Schlussrechnung — the final invoice that settles an entire contract, crediting all prior Abschlagsrechnungen or Teilrechnungen against the total amount owed.
Anzahlungsrechnung — an advance payment invoice issued before any work begins or goods ship, with VAT due upon receipt of the advance.
Sammelrechnung — a collective invoice that bundles multiple separate deliveries or services to the same customer into a single document, typically covering a defined period.
Proforma-Rechnung — a pro forma invoice used for customs declarations, internal approvals, or informational purposes. It carries no VAT implications and creates no payment obligation.

For international AP teams, expat freelancers, and finance professionals working across borders, the distinctions matter far beyond terminology. Each invoice type triggers a different VAT reporting moment under UStG, follows different payment structure rules under BGB, and requires different downstream documentation. Misidentifying an Abschlagsrechnung as a Teilrechnung, for example, can shift your VAT reclaim timing by months. Processing a Proforma-Rechnung as a standard Rechnung creates a phantom liability in your books. And failing to reconcile a Schlussrechnung against its preceding partial payments is one of the fastest ways to trigger questions from the Finanzamt during an audit.

Regardless of type, every valid German invoice must meet the mandatory content requirements of UStG §14: a unique invoice number, the seller's tax identification number or VAT ID, itemized line descriptions, applicable tax rates, and the corresponding tax amounts. The HGB (Handelsgesetzbuch) further requires businesses to retain these documents for ten years. What varies by type is when VAT is triggered, how payments are structured, and what reconciliation must accompany the invoice through your AP workflow.

Abschlagsrechnung and Teilrechnung: Progress Invoices vs Partial Invoices

These two terms cause more confusion for English-speaking finance teams than any other German invoice vocabulary. Both involve billing for parts of a larger project, but they operate on fundamentally different logic. Getting the distinction wrong can lead to duplicate payments, incorrect accruals, and reconciliation headaches at project close.

Abschlagsrechnung translates most accurately as a progress invoice or advance payment invoice. It is an invoice for a partial payment issued during an ongoing project, before the final deliverable is complete. The invoiced amount represents a fraction of the total agreed contract price — not payment for a specific finished deliverable. Its legal foundation is BGB §632a, which grants contractors working under a Werkvertrag (work contract) the right to demand partial payments proportional to work already performed.

Abschlagsrechnungen are standard practice across Germany's construction sector, an industry that encompasses approximately 389,000 enterprises with 1.9 million employees and generates €414 billion in annual turnover, according to Destatis structural data on Germany's construction and crafts sectors. Construction projects routinely structure progress payments around defined milestones — 30% at foundation completion, 50% at structural completion (Rohbau), and so on. VOB/B (Vergabe- und Vertragsordnung für Bauleistungen), the standard contract terms governing public and private construction projects, explicitly regulates how Abschlagsrechnungen are issued and processed. Beyond construction, the same mechanism appears in large IT implementations, multi-phase consulting engagements, and any long-duration Werkvertrag where waiting until project completion to invoice would create unreasonable cash flow strain. Companies involved in German construction projects should also be aware of German construction withholding tax obligations, which apply to many of the same contracts where Abschlagsrechnungen are issued.

Teilrechnung translates as partial invoice, but the word "partial" here refers to a completed part, not a partial payment. A Teilrechnung invoices a specific, completed and delivered portion of a larger project. Unlike the Abschlagsrechnung, it references a defined sub-deliverable that has been fully finished and accepted by the client. In effect, the Teilrechnung functions as a final invoice for that particular deliverable within the broader project scope.

The practical distinction becomes clear through a concrete example. A general contractor is building three office buildings under a single master contract:

The contractor reaches structural completion on Building A and invoices 30% of Building A's contract value as a scheduled milestone payment. This is an Abschlagsrechnung — the building is not finished, and the invoice reflects a percentage of the total price.
The contractor finishes Building A entirely, the client accepts the completed building, and the contractor invoices the full contract price for Building A while Buildings B and C remain under construction. This is a Teilrechnung — a complete deliverable has been handed over and invoiced in full.

	Abschlagsrechnung	Teilrechnung
Basis	Advance against total project price	Invoice for a completed sub-deliverable
Scope	Percentage-based or milestone-based	Deliverable-based
Project status	Work still in progress	That portion is finished and accepted
Settlement	Must be reconciled in a Schlussrechnung	Stands on its own as a settled amount

For AP teams, this distinction drives different processing requirements. An Abschlagsrechnung must be tracked against the total contract value because every amount billed will be deducted and reconciled when the Schlussrechnung (final invoice) is issued at project end. Failing to maintain this running tally is one of the most common sources of overpayment on German construction contracts. A Teilrechnung for a completed sub-deliverable, by contrast, is settled independently — it closes out that portion of the engagement and does not require further reconciliation against a final invoice for the same scope.

Schlussrechnung: How the Final Invoice Settles Prior Payments

The Schlussrechnung is the final invoice issued at the completion of a project or contract. Its purpose is straightforward: state the total contract value, list every Abschlagsrechnung or Teilrechnung previously issued, subtract those amounts, and present the remaining balance due. It functions as the settlement document for the entire engagement, closing the books on all prior interim billing.

What distinguishes a Schlussrechnung from an ordinary invoice is its reconciliation function. Rather than billing for new work, it accounts for everything that came before.

Mandatory Content and Structure

A properly prepared Schlussrechnung must include several elements beyond standard invoice requirements:

Total contract value for the completed scope of work
A line-by-line reference to each prior Abschlagsrechnung or Teilrechnung, identified by invoice number, date, and amount
Subtraction of all prior payments from the total, arriving at the net remaining balance
VAT calculation covering the full project amount, with adjustments for VAT already invoiced

The arithmetic must be transparent. Anyone reviewing the document should be able to trace the path from total contract value to final payment amount without ambiguity.

One scenario that catches international teams off guard: if project scope was reduced or pricing adjusted downward after Abschlagsrechnungen were already paid, the Schlussrechnung can show a negative balance. In that case, the supplier owes the client a refund, and the Schlussrechnung documents exactly how much and why.

VAT Reconciliation Across the Invoice Chain

VAT treatment on a Schlussrechnung is where complexity concentrates. Under UStG §13, VAT on Abschlagsrechnungen becomes due at the time of payment, not at project completion. By the time the Schlussrechnung is issued, VAT has already been triggered and (in most cases) remitted on each prior advance.

The Schlussrechnung must therefore reconcile total project VAT against the VAT amounts already invoiced on all preceding Abschlagsrechnungen. It shows the full VAT on the total contract value, deducts the VAT already billed and paid through interim invoices, and states only the differential VAT still owed. The Finanzamt requires consistent treatment across the entire chain of invoices. If the VAT rates or amounts on the Schlussrechnung do not align with what was reported on prior Abschlagsrechnungen, it creates a discrepancy that surfaces during tax audits.

What AP Teams Need to Verify

Processing a Schlussrechnung requires more than the usual three-way match. Before approving payment, AP teams should confirm:

Every referenced invoice exists in their system. Each Abschlagsrechnung or Teilrechnung listed on the Schlussrechnung should match a corresponding record with the same number, date, and amount.
The payment amounts are accurate. The sums deducted should reflect what was actually paid, not just what was invoiced. If an Abschlagsrechnung was partially paid or disputed, the figures may not align.
The VAT reconciliation is correct. Total project VAT minus previously invoiced VAT should equal the VAT shown as due on the Schlussrechnung. Errors here are a common source of both payment disputes and audit findings.
The total contract value reflects any agreed amendments. Change orders, scope reductions, or negotiated adjustments should all be reflected in the final figure.

Discrepancies between what the Schlussrechnung claims was previously billed and what the buyer's records show are among the most frequent triggers for payment delays in German B2B transactions.

Timeline Requirements in Construction Contracts

In construction projects governed by VOB/B (Vergabe- und Vertragsordnung für Bauleistungen), specific deadlines apply. The contractor must typically submit the Schlussrechnung within a defined period after formal project acceptance, known as Abnahme. The client then has a contractually specified review period to examine the invoice and raise objections.

Missing these windows has consequences on both sides. A late Schlussrechnung can weaken the contractor's position in disputes. A client who fails to object within the review period may lose the right to contest specific line items. For international companies managing German construction or engineering projects, tracking these deadlines is as important as verifying the numbers.

Anzahlungsrechnung, Sammelrechnung, and Proforma-Rechnung

Beyond the project-based invoice sequence covered above, three additional German invoice types appear regularly in international business. Each serves a distinct commercial purpose, and understanding when you will encounter them prevents classification errors in accounts payable.

Anzahlungsrechnung (Advance Payment Invoice)

An Anzahlungsrechnung is an invoice requesting payment before any goods are delivered or services rendered. It functions as a formal demand for prepayment, typically issued when a supplier needs upfront capital to begin production, procure materials, or reserve capacity for a custom order.

Unlike an Abschlagsrechnung, which bills for work already performed during an ongoing project, an Anzahlungsrechnung bills for work that has not yet started. One looks backward at completed milestones; the other looks forward at future delivery.

Anzahlungsrechnungen are common in manufacturing, machinery procurement, and service contracts with significant lead times. A German tooling company, for instance, might require 30% of the contract value upfront before beginning production on custom equipment. That 30% request arrives as an Anzahlungsrechnung.

VAT treatment follows a specific rule under UStG §13: the tax obligation is triggered upon receipt of the advance payment, not upon delivery of the goods or services. The supplier must issue the Anzahlungsrechnung with VAT stated before receiving payment. Once the buyer pays, they can reclaim the input VAT immediately, provided they hold a valid invoice meeting all formal requirements under §14 UStG. This means AP teams processing advance invoices should not defer the VAT reclaim until final delivery. For a deeper look at how advance payment invoices work in accounts payable, the operational steps and booking entries differ from standard invoice processing.

When the final delivery occurs, the supplier issues a Schlussrechnung that credits the advance payment and its associated VAT, invoicing only the remaining balance.

Sammelrechnung (Collective Invoice)

When a supplier delivers goods or services to the same customer multiple times within a month, a Sammelrechnung bundles all those transactions into a single invoice covering the defined period. Rather than issuing an individual invoice for each delivery, the supplier consolidates everything into one document, typically at month-end.

This type is standard in ongoing supply relationships. An office materials supplier delivering orders weekly, a logistics provider completing multiple shipments, or a staffing agency billing for several placements within the same month will often issue a Sammelrechnung rather than dozens of individual invoices.

The legal requirement is straightforward but non-negotiable: each delivery or service within the Sammelrechnung must be individually itemized with its own delivery date, description, and amount. The invoice cannot simply state a lump sum for "services rendered in March." Every line item must be traceable to a specific delivery, because the VAT obligation attaches to each individual delivery date, not to the date the consolidated invoice is issued.

For international AP teams, Sammelrechnungen simplify payment processing but require careful attention during three-way matching. Each line item effectively represents a separate transaction that must reconcile against its corresponding purchase order and goods receipt.

Proforma-Rechnung (Pro Forma Invoice)

Despite its invoice-like formatting, a Proforma-Rechnung is not an invoice in the legal or tax sense. It carries no VAT obligation, cannot be used as the basis for input tax deduction, and does not create a payment obligation for the recipient.

Its primary uses are:

Customs declarations in cross-border trade, where authorities need a document stating the value of goods for tariff and duty calculations
Pre-sale price quotations formatted as invoice-like documents for the buyer's internal approval process
Internal transfers between related entities, such as shipments between a German parent company and its foreign subsidiary

The document must be clearly marked as "Proforma-Rechnung" or "Proforma" to avoid any confusion with a standard Rechnung. If a document lacks this designation and otherwise meets the formal invoice requirements of §14 UStG, tax authorities may treat it as a valid invoice, potentially triggering unintended VAT obligations for the issuer.

International professionals encounter Proforma-Rechnungen most frequently in import/export scenarios. If you receive one from a German supplier, do not process it through your standard AP workflow or attempt to reclaim VAT from it.

Stornorechnung and Rechnungskorrektur

One additional category worth noting: when a previously issued German invoice contains errors, the original cannot simply be edited or reissued with the same number. German law requires a formal correction document, either a Stornorechnung (cancellation invoice) that voids the original or a Rechnungskorrektur (invoice correction) that amends specific elements. Both must reference the original invoice number and date. The rules governing these documents, including their effect on VAT reporting periods, are covered in detail in the guide to German credit notes and invoice corrections.

How VAT Applies to Each German Invoice Type

VAT treatment is not uniform across German invoice types. The critical variable is timing: when does the VAT obligation arise for the supplier, and when can the buyer deduct input tax? Getting this wrong leads to incorrect VAT returns, potential penalties, and unnecessary cash flow disruption. The governing statute is UStG §13, and the rules split along a clear line between delivery-based and payment-based triggers.

The Standard Rule: VAT on Delivery

For a standard invoice (Rechnung), VAT obligation arises when the goods are delivered or the service is completed. This is codified in UStG §13 Abs. 1 Nr. 1a. The supplier must report output VAT in the filing period when delivery occurs, regardless of when the invoice is issued or paid. On the buyer's side, input tax deduction becomes available once two conditions are met: the buyer holds a valid invoice that meets all requirements under UStG §14, and the delivery or service has actually been received.

This delivery-based rule also governs Teilrechnungen (partial invoices). Because each Teilrechnung corresponds to a completed and accepted sub-deliverable, the VAT obligation attaches at the point that specific portion is delivered. If a logistics project is split into three phases and Phase 1 is delivered and accepted in March, the Teilrechnung for Phase 1 triggers VAT in March, even if Phases 2 and 3 are months away.

The Advance Payment Exception: VAT on Receipt of Payment

Abschlagsrechnungen and Anzahlungsrechnungen follow a different rule. Under UStG §13 Abs. 1 Nr. 1a Satz 4, when payment is received before delivery is complete, VAT is triggered upon receipt of the advance payment rather than upon delivery. This applies to both the supplier's output VAT obligation and the buyer's right to input tax deduction.

In practice, this means:

The supplier receives a 30% advance payment in April for a project completing in September. The supplier must account for output VAT on that 30% in the April VAT return.
The buyer can claim input tax deduction on that same 30% in April, provided they hold the Abschlagsrechnung or Anzahlungsrechnung and the payment has been made.

Schlussrechnung: VAT Reconciliation

The Schlussrechnung creates a reconciliation obligation. Because VAT has already been invoiced and accounted for on prior Abschlagsrechnungen, the final invoice must not simply state the total project VAT as if starting from zero. Instead, the Schlussrechnung shows the total VAT for the entire project minus the VAT already reported on all preceding advance invoices. Only the remaining difference is newly triggered VAT.

Both parties must reconcile carefully:

Supplier side. The output VAT on the Schlussrechnung is the net amount after subtracting VAT already remitted on advances. If total project VAT is €19,000 and €11,400 was already reported across three Abschlagsrechnungen, the Schlussrechnung triggers €7,600 in additional output VAT.
Buyer side. The buyer has already claimed input tax deduction on the advances. The Schlussrechnung entitles them to deduct only the remaining VAT. Double-deduction is a common audit finding when AP teams process the Schlussrechnung without checking what was already claimed.

Failure to reconcile correctly is one of the most frequent VAT errors in project-based billing. The Schlussrechnung should explicitly list all prior advance invoices and their VAT amounts to create a clean audit trail.

Proforma-Rechnung: No VAT Relevance

A Proforma-Rechnung has no VAT implications. It is not a tax-relevant document under German law, cannot trigger any VAT obligation for the issuer, and cannot be used by the recipient to claim input tax deduction. Treating a Proforma-Rechnung as a taxable invoice in a VAT return is an error that will not survive an audit.

VAT Timing Reference by Invoice Type

Invoice Type	VAT Trigger Point	Buyer Input Tax Deduction
Rechnung (standard invoice)	Delivery of goods or completion of service	Upon receipt of valid invoice + delivery received
Teilrechnung (partial invoice)	Delivery and acceptance of the specific sub-deliverable	Upon receipt of valid Teilrechnung + partial delivery received
Abschlagsrechnung (progress invoice)	Receipt of the advance payment	Upon payment made + valid Abschlagsrechnung held
Anzahlungsrechnung (advance payment invoice)	Receipt of the advance payment	Upon payment made + valid Anzahlungsrechnung held
Schlussrechnung (final invoice)	Delivery of remaining scope; VAT = total minus VAT on prior advances	Remaining VAT only; prior deductions on advances already claimed
Sammelrechnung (collective invoice)	Per individual delivery date within the invoice	Per delivery, upon receipt of valid Sammelrechnung + goods/services received
Proforma-Rechnung (pro forma invoice)	None — not a tax document	Not permitted

XRechnung Type Codes for German Invoice Types

Germany's e-invoicing framework requires every invoice to carry a coded type identifier that tells the receiving system exactly what kind of document it is processing. XRechnung, built on the European EN 16931 standard, draws these codes from the UN/CEFACT reference code list (UNTDID 1001). Understanding which code maps to which German invoice type is essential for anyone implementing or receiving structured e-invoices in the German market.

The following table maps the most relevant UNTDID 1001 codes to their German invoice type equivalents:

Type Code	German Term	English Equivalent
380	Rechnung	Standard commercial invoice
381	Gutschrift (credit note)	Credit note issued to the buyer
384	Rechnungskorrektur	Corrected invoice
386	Vorauszahlungsrechnung / Anzahlungsrechnung	Prepayment invoice
389	Gutschrift (self-billed)	Self-billed invoice, issued by the buyer on behalf of the supplier
875	Abschlagsrechnung (construction)	Partial construction invoice
876	Teilschlussrechnung	Partial final construction invoice
877	Schlussrechnung (construction)	Final construction invoice

Code 380 covers the vast majority of routine invoicing. When a German supplier sends a standard Rechnung for goods delivered or services rendered, this is the type code applied. Code 381 represents a credit note (Gutschrift in its accounting sense), while 384 handles corrected invoices where the original document contained errors. Code 386 maps directly to the Anzahlungsrechnung discussed earlier in this article, flagging the document as a prepayment invoice with specific VAT treatment requirements.

The distinction between codes 381 and 389 deserves attention. Both use the word Gutschrift in German, but they describe fundamentally different documents. Code 381 is a credit note reducing a previous charge. Code 389 is a self-billed invoice, where the buyer creates the invoice on behalf of the supplier. This dual meaning of Gutschrift is a well-known source of confusion in German invoicing, and the type codes eliminate that ambiguity in structured data.

Construction-specific codes 875, 876, and 877 reflect the central role that progress billing plays in the German construction sector. Code 875 maps to the Abschlagsrechnung for construction projects, 876 to a partial final invoice (Teilschlussrechnung), and 877 to the full Schlussrechnung that settles all prior progress payments. These codes were added specifically because the Abschlagsrechnung-to-Schlussrechnung workflow is so deeply embedded in German construction practice that generic invoice codes could not adequately represent it. Outside the construction sector, a Teilrechnung for a completed sub-deliverable typically uses code 380 (standard commercial invoice), since the non-construction type codes do not distinguish between full and partial deliveries.

ZUGFeRD, the hybrid PDF/XML format widely adopted across German businesses, uses these same UNTDID 1001 type codes in its structured XML layer. Whether an organization exchanges pure XRechnung files (CII XML) or ZUGFeRD hybrid invoices, the code mapping is identical. For a detailed overview of compliance timelines and technical requirements, see Germany's e-invoicing mandate and XRechnung requirements.

The practical value of these codes becomes clear in accounts payable automation. When a system receives an e-invoice carrying code 875, it knows immediately that this is a construction progress payment that must be tracked against a contract total and eventually reconciled with a final settlement invoice (code 877). A document with code 380, by contrast, follows the standard three-way matching workflow. Correctly routing by type code eliminates the need for manual classification of every incoming document.