The main difference in invoices for small businesses is that sales tax should never be shown. This is because it doesn’t comply with the VAT Act provisions. It’s essential to clearly indicate this on the invoice:
A NOTE LIKE “ACCORDING TO § 19 OF THE USTG, NO SALES TAX IS CHARGED” IS SUFFICIENT AS EXPLANATION.
Despite this, other accounting rules still apply under the Small Business Regulation. Technically, small business owners are not “exempt” from sales tax; it’s simply not collected by the tax office to simplify administration. This distinction is important.
For further guidance on creating a proper invoice and sample wording for small business owners, check out our article on how to create an invoice (instructions).