This blog and regulations information were correct as of the publishing date. To view the most up to date regulations and blogs, view the tax compliance regulations page.
Based on a dispute by the Bundesrat (legislative body that represents the federal states), the German Mediation Committee will debate at the end of February 2024 on the short-term amendments in the Growth Opportunities Act during Bundestag procedure. Further changes to the law might be expected.
Germany’s latest VAT and e-invoicing proposals
Change of the definition of an electronic invoice
The parliamentary votings may change the definition of an electronic invoice and the categorisation of paper invoices.
The votes are leaning towards requiring an electronic invoice (e-invoice) to adhere to the EN16931 standard, or any other data format agreed between the supplier and the buyer - the format must allow correct and complete extraction of the required VAT information from the electronic invoice into a format that aligns with the EN standard.
The second part of this particular proposal involves paper invoices. The proposal states that the categorisation of paper invoices will be classed as other invoices.
New mandatory e-invoicing dates and procedures
If the current parliamentary votings are approved, the following dates and procedures must be followed by all business-to-business (B2B) invoicing scenarios:
- From 1 January 2025 - All businesses should be capable of receiving e-invoices in EN16931, since the consent of the buyer will no longer be needed for sending e-invoices.
- Until 31 December 2026 (previously 31 December 2025) - Paper invoices and e-invoices in formats that do not comply with EN16931 are still allowed, but may only be sent with the consent of the recipient.
- From 1 January 2027 (previously 1 January 2026) - B2B e-invoicing issuance obligation for businesses with a previous year's (2026) turnover of EUR 800,000 or more. As well as the one year extension to this part of the previously proposed mandate, another amendment states that businesses are allowed to continue using EDI from this date onward.
- From 1 January 2028 (previously 1 January 2027) - B2B e-invoicing issuance obligation for all businesses. EDI is still permitted provided that the VAT information can be extracted in EN16931.
The status of EDI
The business sector raised concerns about the costly adaptation of EDI (electronic data interchange) to the standard EN16931.
A new provision, if voted in, will allow a mutual agreement between invoice issuers and recipients on using a different structured electronic format - provided it accurately extracts VAT relevant information.
Germany’s e-invoicing regulations history
Germany, like many European Member States, currently has business-to-government (B2G) e-invoicing mandates in place. All public bodies must be able to receive electronic invoices, and all public body suppliers must send electronic invoices to their government contractor.
The first inclination of Germany’s intentions to mandate B2B electronic invoicing was on the 23rd of June 2023, when the European Commision gave the country permission to move away from certain parts of the European VAT directive.
Germany’s plan aligns with the VAT in the Digital Age directive, which is also persuading many European Member States to address their e-invoicing regulation intentions.
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Details correct as of the publishing date. For the most up to date regulations, view Germany's e-invoicing regulations information.