While most of the mandatory information on German invoices, such as name, address, and invoice number, is self-explanatory, the performance period might not be as easy to define. It can be especially challenging to determine the correct performance period when dealing with different types of deliveries and services.

In this article, you will learn what the performance period on an invoice is, why it’s important, and how it differs from the performance date and invoice date. We also explain how to correctly determine the performance period and what other information is mandatory to create a valid invoice.

What’s in this article?

• What is the performance period on an invoice?
  
• Why is it important to specify the performance period on an invoice?
  
• What is the difference between the performance date, performance period, and invoice date?
  
• How can companies in Germany ensure they specify a correct performance period?
  
• What other information must an invoice in Germany contain in addition to the performance period?
  

What is the performance period on an invoice?

The performance period refers to the period during which a company has provided a service or delivery for a customer. It therefore specifies exactly when an activity relevant to billing took place. This information is particularly important for the accounting and tax classification of the service.

Why is it important to specify the performance period on an invoice?

Specifying the performance period is more than just a formality. It fulfills several key functions for companies issuing invoices, recipients of invoices, and tax authorities.

Legal requirement

According to Section 14 (4) of the German Value Added Tax Act (UStG), the performance period is one of the mandatory details required by law on invoices in Germany. If this information is missing, an invoice is not considered valid. It might be challenged in a company audit or tax audit, which could result in additional payments and penalties.

Stripe Invoicing can help you prepare and manage your invoices. Stripe uses automated features to determine the performance period and other mandatory information so you can meet legal requirements and avoid billing errors. You can also use Invoicing to automate the sending of invoices and payment reminders.

Tax classification and input tax deduction

The performance period is important for the correct allocation of value-added tax (VAT) over time. The performance period is used to determine in which advance tax return period—i.e., in which month or quarter—the performance must be recorded for VAT purposes. This information is needed for invoice recipients to be able to claim input tax deduction.

Clarity and transparency

Particularly when partial or reduced invoices are issued, a process known as progress invoicing, the delivery period is of great importance for transparency and clarity. With progress invoicing, only part of the total service will be invoiced, so a clear chronological correlation is necessary.

It’s also important to specify the performance period for ongoing projects and long-term contracts. When services are provided and billed over several months or even years, specifying the exact performance period helps ensure that each individual invoice can be clearly assigned to a specific period.

What is the difference between the performance date, performance period, and invoice date?

The terms “performance date,” “performance period,” and “invoice date” often appear in connection with invoices. Although they are closely related, they have different meanings and functions. It’s important to be aware of these differences and take them into account.

Performance date

The performance date refers to a single, specific day on which a service was provided or a delivery was made. While services can also be provided over a longer period of time, delivery always takes place on a specific date. For this reason, when billing for product sales, the term delivery date is often used instead of performance date.

For example, if a company in Germany delivers a product to a customer on July 15, this date is specified as the performance date or delivery date on the invoice.

However, It is also permissible to refer on the invoice to the delivery date stated on an accompanying delivery note. This is based on Section 31 (1) of the German VAT Implementation Regulation (UStDV), which allows an invoice to consist of several documents, provided that all required information can be clearly derived from them as a whole.

If the delivery note does not state the delivery date, the date of issue of the delivery note may be used instead. In this case, the invoice must include the note: “The date on the delivery note corresponds to the delivery date.”

Performance period

In contrast to the performance date, the performance period describes a longer period of time over which one or more services were provided. This is particularly relevant for services that are not completed on a single day, but extend over days, weeks, or months. Examples of this include consulting services, maintenance contracts, or IT support.

On a corresponding invoice, the performance period can be recorded as a defined period, for example, January 1, 2026 to January 31, 2026. However, according to Section 31 (4) UStDV, it is also sufficient to simply indicate the calendar month in which the service was provided (e.g., January 2026). In practice, the corresponding quarter is often specified as well (e.g., Q1 2026).

Invoice date

The invoice date is the date on which the invoice is issued. It might coincide with or differ from the performance date. If both dates match, the following information can be added to the invoice: “The performance date corresponds to the invoice date.” In this case, the performance date does not need to be stated as a specific date.

How can companies in Germany ensure they specify a correct performance period?

It’s not always easy for companies to correctly state the performance period on invoices, as different dates or periods might apply depending on the type of delivery or service. In order to avoid errors and comply with legal requirements, it’s particularly important to pay attention to the following aspects:

Differentiation according to type of delivery

Depending on how a product delivery is contractually regulated, the performance period refers to different points in time:

• “Ex works” delivery: In this case, the performance date is the moment at which the goods leave the seller’s warehouse or production site. The customer collects the goods and is responsible for their transport from that point onwards.

• “Freight prepaid” delivery: In this case, the date on which the goods arrive at the customer’s premises is considered the performance date. The sellers bear the transport costs and the risk during delivery.

• Active delivery: In so-called chain transactions involving several parties, the first transfer to the transport company determines the performance date.

Precision in time specification

Depending on whether a service is one-off or recurring, the specification of the performance period can be handled differently:

• One-time services: For one-time services or deliveries, it’s typically best to use the exact date as the performance date to ensure traceability in accounting.

• Recurring services: For monthly services or similar recurring services, the performance period can also be specified as a whole month (e.g., January 2026). This is standard practice and sufficient as long as all services are clearly invoiced within that period.

• Multiple services in one month: If several services from different days of a month are summarized on one invoice, it makes sense to specify the entire month as the performance period.

Special considerations at year-end

If a service is provided in one fiscal year but invoiced in the following fiscal year, the service must be allocated to the correct period. This means that the liability must be recorded in the old fiscal year, while the input tax deduction is only possible in the new year upon receipt of the invoice. More information can be found in our article on accruals and deferrals.

What other information must an invoice in Germany contain in addition to the performance period?

The VAT Act lists the mandatory information to include on invoices in Germany. This includes:

• Full name and address of seller
  
• Full name and address of buyer
  
• A sequential, unique invoice number
  
• Issue date of invoice
  
• Date of delivery or service
  
• Tax number issued to the seller by the tax office or the VAT identifier issued by the Federal Central Tax Office (BZSt)
  
• Quantity and type of products supplied or the scope and type of service rendered
  
• Net and gross amount
  
• Applicable tax rate and the corresponding tax amount or, in the case of a tax exemption, a reference to the tax exemption