Document background
The Due On Receipt Invoice is a fundamental business document used when immediate payment is required for goods or services provided. Under German law, particularly the German Commercial Code (HGB) and VAT Act (UStG), this document must contain specific elements including detailed business information, tax identification numbers, and clear payment terms. It's commonly used in scenarios requiring prompt payment, such as one-time purchases, urgent services, or when dealing with new customers without established credit terms. The document serves multiple purposes: it acts as a formal payment request, provides tax documentation, and establishes a legal basis for payment collection. The immediate payment requirement must be clearly stated to comply with German legal requirements and ensure enforceability.
