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Accounting and invoicing for building contractors

Shell construction, extensions, refurbishment and civil engineering: a building contractor runs several sites at once with subcontractors, material and machines. Saldiqo issues stage invoices by progress, assigns subcontractor and material invoices to the site and shows the result per project.

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What comes up for building contractors

Several sites at once

Each site has its own costs, stage invoices and dates. Without allocation the result stays unclear.

Subcontractors

Subcontractor invoices flow into the price. They have to be assigned to the site and paid on time.

Machines and fleet

Excavators, loaders and vans are large items that are depreciated.

How Saldiqo helps

  • Stage invoices by progressQuote, stage invoices by progress, final invoice.
  • Record subcontractorsInvoices as expenses with the site’s cost centre.
  • Reverse charge for constructionTax type reverse charge when the client provides construction services itself.
  • Machines as assetsPurchases over €800 net run over their useful life.

Typical invoice lines

Examples that often appear on invoices in this industry. You set the prices yourself.

  • Shell of a detached house, stage 3 of 6
  • Earthworks and excavation, flat fee
  • Subcontractor screed, re-invoiced
  • Site container hire, month
  • Material as per delivery note
  • Day work, labourer

Tax and invoicing in Germany

What applies to invoices in Germany, in short. As of October 2026.

VAT
Standard rate 19 %, reduced rate 7 %. Which rate applies to which supply depends on the case. Saldiqo calculates each invoice line with the rate you pick.
Small business scheme
Under section 19 of the VAT Act (UStG) you charge no VAT as long as your turnover was at most €25,000 last year and is at most €100,000 this year. Saldiqo shows how much room is left and adds the note to your invoice.
Mandatory details
Under section 14 UStG every invoice shows a tax number or VAT ID, a consecutive invoice number, the date of supply and the recipient. Saldiqo checks this before you finalise an invoice. Small invoices up to €250 gross need fewer details.
E-invoicing
All businesses have had to be able to receive e-invoices since 1 January 2025. Issuing becomes mandatory from 2027 if last year’s turnover was above €800,000, and from 2028 for domestic business-to-business sales in all cases. Small businesses under section 19 are exempt. Saldiqo creates XRechnung and ZUGFeRD.
VAT return
The advance VAT return goes to the tax office through ELSTER, by the 10th after the end of the period. You file monthly if last year’s VAT was above €9,000 and quarterly above €2,000. Saldiqo provides the figures; you file in ELSTER or through your tax adviser.
Record keeping
Keep invoices and accounting vouchers for 8 years, books for 10 years and business letters for 6 years. The period starts at the end of the calendar year.
Late payment
In the second half of 2026 the default interest rate is 10.52 % between businesses and 6.52 % towards consumers, plus a €40 flat fee that applies to businesses only. Saldiqo has reminder levels with deadlines and fees.
Getting paid
Every invoice carries a GiroCode (EPC QR) that customers scan with their banking app. You match payments by uploading the bank statement as CSV or CAMT.
Tax adviser
Cash-basis profit calculation (EÜR), a DATEV export and a separate login for your tax adviser are built in.

For building contractors in Germany

Construction services to businesses that provide construction services themselves are mostly subject to the reverse charge under section 13b of the VAT Act. For that you choose the tax type reverse charge in Saldiqo. Construction withholding tax and exemption certificates Saldiqo does not know, you clear those with your tax adviser.

Frequently asked questions

Can I evaluate several sites separately?

Yes, with cost centres per site. You see income, material and subcontractors per project.

How do I bill stages by progress?

With stage invoices from the quote. The final invoice deducts them.

Do building contractors in Germany have to charge VAT?

Yes, unless they qualify as small businesses under section 19 UStG. That applies when turnover was at most €25,000 last year and is at most €100,000 this year. The limit is hard: VAT is due on the sale that takes you over it.

Do building contractors in Germany need e-invoicing?

Every business must be able to receive e-invoices since 2025. Issuing is mandatory from 2027 if last year’s turnover was above €800,000, and from 2028 for domestic business-to-business sales in general. Small businesses, invoices up to €250 and tickets are exempt. Private customers still get a normal invoice.

How long do building contractors have to keep invoices?

Invoices and vouchers for 8 years, books for 10 years and business letters for 6 years, counted from the end of the calendar year. You can store receipts digitally in Saldiqo. The legal duty to keep records and to document your procedures stays with you.

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As of October 2026. General information, not legal or tax advice, without guarantee. For your case ask your tax adviser.