Early Payment Discount (Skonto) on German Invoices 2026: How to Offer and Book It Correctly

Skonto, the German early-payment discount, is the simplest lever for getting paid faster. You give customers a 2-3 % discount for paying within a few days, and your money lands in days instead of weeks. Sounds simple, but the bookkeeping and VAT side can trip you up. Here's how to offer, formulate, calculate, book and VAT-adjust Skonto correctly in 2026, for both freelancers using EÜR and GmbHs running double-entry books.

Skonto in 30 seconds

• Skonto is a percentage discount for early payment, usually 2 % within 7–14 days, otherwise 30 days net.
• To be legally valid, the rate and deadline must be unambiguous in the invoice payment terms ("2 % discount for payment by …").
• When the customer takes the Skonto, the taxable base changes: you correct VAT under § 17 UStG; no cancellation invoice needed.
• It's booked as a revenue reduction (EÜR) or on the "Gewährte Skonti" account SKR03 #8730 / SKR04 #4730 (GmbH).
• The customer may take Skonto only within the deadline; what counts is the payment arriving in your account, not the day the transfer is initiated.

What Skonto is and why offer it?

Skonto is a percentage discount for early payment. The standard in Germany is 2 % for payment within 7 or 14 days, against a 30-day net term. Why offer it as the seller: better liquidity, fewer payment-reminder cycles and stronger B2B relationships; many corporate buyers actively use Skonto and value the offer.

The cost is real: from the payer's side, Skonto is a high-yield place to park cash; from yours, it's a discount you pay for speed. How expensive, the effective annual yield below shows.

Typical Skonto rates and terms 2026

Common B2B terms in Germany:

Skonto is voluntary; there is no legal obligation to offer it. But once you do offer it, the terms must be unambiguous.

Calculating Skonto: formula and example

The Skonto amount is the rate applied to the gross invoice total:

Skonto amount = invoice total (gross) × Skonto rate

Example: €1,190 gross (€1,000 net + 19 % VAT), 2 % Skonto.

• Skonto amount: €1,190 × 2 % = €23.80
• Amount payable on time: €1,190 − €23.80 = €1,166.20

More interesting than the euro figure is what the Skonto costs annualised. The customer saves 2 % by paying just 20 days earlier (day 10 instead of day 30). Rolled up to a full year, that's a double-digit interest rate:

Effective annual yield ≈ Skonto rate ÷ (net term − Skonto period) × 360

For 2 % / 10 days net 30: 2 % ÷ (30 − 10) × 360 = 36 %. That's why cash-rich buyers almost always take Skonto; you won't find a 36 % return anywhere else.

How to formulate Skonto on the invoice

For Skonto to be legally valid, it must be stated in the payment terms on the invoice. Example wording:

Payable within 30 days net. 2 % discount for payment within 10 days of the invoice date.

What doesn't work: vague phrasing like "Skonto possible". Both the percentage and the deadline must be precise. The other mandatory invoice fields still apply; Skonto is an extra payment condition, not a substitute for your tax number, invoice number or line-item description.

When may the customer take the Skonto?

The customer is only entitled to deduct Skonto if they stick exactly to the rate and deadline. Two points routinely cause disputes:

• Start of the period: the Skonto period usually runs from the invoice date, not from goods receipt.
• The decisive day: what counts is the payment arriving in your account, not the day the customer initiates the transfer. They should allow one or two bank working days of buffer.

If the customer deducts Skonto after the deadline anyway, that isn't permitted, and you can reclaim the difference. It rarely pays to fight over cents, but on larger invoices it certainly does. Being consistent here trains customers to pay on time.

VAT correction under § 17 UStG

As soon as the customer takes the Skonto, the taxable base changes. Under § 17 UStG you must correct VAT accordingly:

• As the supplier: you reduce the VAT you owe
• The customer: reduces their input VAT deduction by the same amount

Here is the correction on our example (2 % on €1,190 gross):

So the €23.80 Skonto splits into a €20 net revenue reduction + €3.80 VAT correction. The correction is recorded in the VAT period in which the Skonto is actually taken, not retroactively. No credit note or cancellation invoice is required: the bank statement showing the discounted payment is sufficient evidence.

Booking Skonto: EÜR vs. GmbH

In the EÜR (self-employed):

1. Book the original invoice as full income
2. When payment with Skonto arrives: record the Skonto amount as a revenue reduction and adjust VAT down

In the GmbH (double-entry), the discounted payment runs across three accounts:

A modern AI accounting tool handles these adjustments automatically; manual Skonto corrections are a common source of audit findings.

Skonto vs. discount: what's the difference?

Both reduce the final price, but:

• Rabatt (discount) is given before the deal (e.g. volume discount, loyalty rebate). It appears as a deduction on the invoice itself.
• Skonto is given after the deal, depending on how the customer pays.

Result: a Rabatt reduces the taxable base from the start. Skonto only kicks in if the customer takes it, and then triggers the § 17 UStG VAT correction.

Pros and cons of offering Skonto

Pros:

• Faster payment, better cash-flow planning
• Fewer overdue receivables and reminder cycles
• Competitive edge in B2B sales

Cons:

• Margin loss: risky on thin-margin work
• Customers sometimes deduct Skonto even after the deadline (a frequent dispute)
• Extra bookkeeping work for the VAT correction

Frequently asked questions about Skonto

Is Skonto mandatory?

No. Skonto is a voluntary payment condition. You decide whether and how much to offer. Without an explicit term on the invoice, the customer may not deduct any Skonto.

What is a typical Skonto rate?

Market standard is 2 % within 7–14 days or 3 % within 10 days, against a 30-day net term. Higher rates give away margin fast: 3 % / 10 net 30 already equals about 54 % effective annual yield.

Is Skonto calculated on the gross or net amount?

On the gross invoice total. The Skonto taken therefore contains a proportional amount of VAT, which you correct under § 17 UStG.

May the customer take Skonto after the deadline?

No. The Skonto deduction is tied to the agreed deadline. If the customer pays late and still deducts it, you can reclaim the difference.

Do I have to issue a cancellation invoice for Skonto?

No. The § 17 UStG VAT correction is made via the payment record in the relevant VAT period. A separate cancellation or correction invoice is not required.

Conclusion

Skonto is a proven liquidity lever, but it isn't free. If you offer it, write the terms clearly on the invoice, run the VAT correction under § 17 UStG cleanly, and use accounting software that automates the discount postings.

With Norman you create e-invoices with clear Skonto terms and book Skonto corrections automatically, GDPR- and GoBD-compliant.