Although exports fell in 2025, the United States remains the country with which Germany records the largest trade surplus. From January to November 2025, Germany exported products worth around €136 billion to the US. For many domestic sellers, then, the US remains a major market for both goods and services. Still, there are certain aspects enterprises in Germany need to be aware of when doing business with US customers specifically around billing.

In this article, you will learn what information an invoice sent to the US has to contain, what the rules are regarding value-added tax (VAT) there, and what currency you need to use. We will also explain common errors to avoid, the payment methods US buyers expect, and how Stripe can support your invoicing process.

What’s in this article?

• When do German businesses issue invoices to the US?
  
• What details does a US invoice need to include?
  
• When is VAT due in the US?
  
• Which currency must invoices issued to the US be in?
  
• What payment methods do US customers expect?
  
• Common errors on US invoices
  
• How Stripe Invoicing makes invoicing in the US simpler
  

When do German businesses issue invoices to the US?

German enterprises invoice customers in the US whenever they sell goods or services to recipients across the Atlantic, covering business clients and private individuals. Typical examples include product exports, consulting and agency work, software subscriptions, or other digital offerings.

Invoices for these supplies act as a request for payment and also accounting documentation. They record the performance rendered, the price charged, and the settlement terms. The requirements local firms need to meet vary depending on whether they are billing a business or an individual buyer.

What details does a US invoice need to include?

In principle, invoices issued by German sellers to US clients must contain the same mandatory information as stipulated by Section 14 of the German VAT Act (UStG) for bills sent within the country. The most substantial details are:

• The full name and address of the company supplying the goods or service
  
• The full name and address of the recipient of the product or service
  
• The issue date of the invoice
  
• The date of delivery or other transaction (i.e., the performance period)
  
• The tax ID issued to the seller by the tax office or the VAT identification number (VAT ID) issued by the Federal Central Tax Office
  
• A sequential, unique invoice number
  
• The quantity and type of products supplied or the scope and type of service rendered
  
• The price for the products delivered or the services rendered
  

Invoices to US customers generally omit German VAT, as special regulations apply to VAT in third countries.

When is VAT due in the US?

As a general rule, VAT-registered businesses in Germany must indicate VAT on invoices for domestic transactions. However, supplies outside of the country are subject to special regulations.

In some situations, organizations could be exempt from VAT within the European Union. Cross-border deliveries between EU entities, for instance, are treated for taxation purposes as so-called intracommunity supplies. Work provided to a business in another EU country qualifies as intracommunity services. Since the place of supply is outside Germany, the service is taxed where the recipient is domiciled. In these cases, the reverse charge procedure applies.

The US is outside the European Community and so is considered a third country. There are no uniform cross-border rules for third countries. Local businesses accordingly need to assess on a case-by-case basis which national VAT rules govern. For many third countries, including the US, the reverse charge mechanism might apply to some cross-border offerings. It’s worth noting that, unlike Germany, the US does not have a nationwide VAT system. Instead, sales tax and use tax are levied at the state level.

In many states, a fiscal obligation can arise as soon as a company exceeds certain revenue or transaction thresholds. This concept is known as an economic nexus. If such a nexus exists, enterprises must register in the relevant state and might need to collect and remit sales tax. Whether and to what extent these taxes come into play depends on the specific state, the type of product or service, and the nature of the business activity.

What is the reverse charge procedure?

The reverse charge procedure transfers the tax liability for select transactions from the supplier to the recipient. As a result, the US buyer—rather than the German business—accounts for the levy and remits any VAT due. German companies, as a result, list net amounts on bills and omit VAT. They are also required to add a statement to the invoice, such as “Reverse charge” or “Any tax due is the responsibility of the recipient.”

That tax-shift rule is limited to business-to-business (B2B) transactions. The same rule does not cover individual buyers. Therefore, German sellers billing private consumers in the US are under no obligation to add a statement regarding the reverse charge rule.

German VAT is not usually applied to deliveries of products to private consumers in the US, as these constitute export supplies. The billing document lists just the net amount. At the same time, the German business has to provide evidence that the products were, in fact, delivered there to claim this tax exemption. Frequently, the opposite is true for work rendered to individual buyers in the US. Unless an exemption applies, the place of performance for a business-to-consumer (B2C) service generally lies where the seller is domiciled, which can trigger German VAT.

Private invoice recipients in the US are personally responsible for any local taxes or duties. In practice, though, sellers are able to withhold and remit sales tax if they are registered in the relevant US states, especially if selling via a platform.

Which currency must invoices issued to the US be in?

It is not just VAT in the US that is notable; the denomination indicated on the invoice also plays a key role in ensuring payments are processed correctly. In principle, businesses in Germany are free to decide whether to issue bills in euros (EUR) or US dollars (USD). While the two options are permitted, each has a different impact on accounting, settlement, and exchange risks.

Invoices in USD

Invoicing in US dollars simplifies settlement for buyers in the US by eliminating currency conversion. Business customers often prefer this option, particularly when paying by wire transfer or through a US-based payment provider. German companies, by contrast, record earnings in euros in their books, regardless of the invoice denomination. As a result, exchange differences can arise and require separate posting. They then need to declare their total earnings in euros on the income tax return.

Invoices in EUR

Euro invoices can make the accounting process easier for the German business itself, since the bill amount is recorded directly in its national denomination. In this case, the US recipient must convert the payment into USD themselves.

What payment methods do US customers expect?

Businesses in Germany need to understand US customers’ payment preferences to simplify invoice settlement. Doing so improves client satisfaction and helps prevent defaults and late payments. Below is an overview of some of the most important options:

ACH

Many US enterprises and individual buyers use wire transfers through the Automated Clearing House (ACH). This centralized financial network facilitates money movement between accounts at different banks by processing them via the ACH. In 2025, the National Automated Clearing House Association (Nacha) recorded 35.2 billion payments across the network. These transactions are fast, secure, and cost-effective.

Credit cards

Card payments are used extensively in the US, with an estimated 800 million credit cards currently in circulation. With a population of roughly 350 million, there are significantly more credit cards in the US than people. German operators, for that reason, need to provide card settlement options when doing business there.

Wire transfers

International wire transfers are particularly well-suited for large payments and are suitable for business clients as well as private individuals. In this process, the money is moved from one bank account to another via an intermediary. While wire transfers offer high security, they might involve longer processing times and higher fees than other methods.

Common errors on US invoices

Domestic operations need to take great care when invoicing the US, as errors can lead to settlement delays and complex fiscal issues. Typical mistakes include:

• Incomplete or incorrect information: If mandatory details are missing or incorrectly stated, both the invoice recipient and the tax authorities might object to the bill.
  
• Incorrect VAT information: Often, German VAT does not apply to invoices sent there. So if a local business does indicate VAT on a billing document, this can lead to misunderstandings, unnecessary queries, and delays in settlement.
  
• No reverse charge note: In many cases, the reverse charge rule comes into play to B2B invoices sent to the US. When it does, businesses in Germany must add a corresponding note to their bill.
  
• No payment information: If an invoice is missing bank info, ACH details, or a statement that credit cards are accepted, then the recipient has to request extra information, which delays payment.
  

How Stripe Invoicing makes invoicing in the US simpler

Invoicing to the US can pose challenges for German businesses, particularly due to US VAT rules and the application of the reverse charge procedure. Stripe Invoicing can help you simplify your workflow—from billing to receiving payment.

With Invoicing, you can create and send bills quickly and easily. Invoicing also automatically reverses the tax liability, meaning your B2B invoices to US customers do not show VAT but do include a corresponding note. Stripe tracks billing status, sends payment reminders, and processes refunds—reducing manual work, saving time, and minimizing errors.

You can create invoices in over 135 currencies, including USD. Your clients can enjoy a wide range of ways to pay and a customer portal that makes it considerably easier to retrieve and settle invoices.

FAQs on invoicing the US from Germany

Below are answers to the most frequently asked questions about invoicing and handling VAT in the US.