How detailed does the invoice need to be?

A new ruling by the Federal Court of Justice regarding hourly wage calculations raises several questions. Here's what the legal experts have to say.

This article is part of the special topic Tax bonus for tradesmen's invoices: What you should know

The craftsman only needs to include the Number of working hours He does not have to break down which hours were spent on which work and on which days – unless it is a VOB contract This is stated in a recent decision of the Federal Court of Justice dated 5 January 2017 (case no. VII ZR 184/14). What does this decision mean for practice, which often looks different? We asked a legal expert: "If the private customer wants a detailed billing, he should do this before clarify, a priority He has by law not", says Michael Bier, lawyer and department head at Chamber of Crafts Düsseldorf.

Correct number of hours must be stated

Paragraph 15 VOB Although it contains specific regulations regarding the billing of hourly wage work, the regulation does not apply to contracts with private customers. "Of course, the tradesperson is also obligated to operate the business economically, which means they must state the correct number of hours," the expert emphasizes. "Fantasy hours" are therefore tabooSection 14 of the Value Added Tax Act also stipulates certain requirements for the tradesman's invoice: the name and address of the service provider, the tax number, the name and address of the customer, and the date of issue. Here, too, the tradesman is not required to differentiate between working hours, activities, and days.

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Tax bonus only with differentiated invoice

However, customers often want an invoice as proof of the "Craftsman bonus" to Section 35 a II EStG can be used at the tax office. For this purpose, the invoice must distinguish between labor and material costs distinguish, because only the Labor costs great tax-privilegedIf they aren't listed, the customer can't deduct them. However, this doesn't mean the tradesman is obligated to break down labor and material costs into their invoices.

And finally ... "Although the craftsman's invoice should be comprehensible and verifiable, the customer can only prior clear agreement credentials for breakdown of the costs," summarizes lawyer Bier. "However, in the interest of a good customer relationship and with a view to possible evidence in court, every tradesman should concrete records of his work make."