Germany B2B eInvoicing: Key Updates

In summer 2023, the European Commission authorized Germany to introduce eInvoicing rules that deviate from the EU VAT Directive. The German Federal Council has now approved a law mandating e-invoicing in stages starting from 2025. The law is awaiting final signatures to become law.

From January 1, 2025, businesses established in Germany will be required to issue e-invoices for taxable supplies within Germany, except for VAT-exempt transactions. This applies if both the supplier and the recipient are established in Germany, meaning they have a registered office, place of management, domicile, habitual residence, or a domestic (VAT) fixed establishment. Consent of the invoice recipient is no longer required, except for invoices for small amounts and tickets.

Strict new standards for eInvoices

Not all invoices that are considered e-invoices today will be considered e-invoices in the future. Only electric invoices that comply with Directive 2014/55/EU - and therefore CEN Standard 16931 - will be recognized. Alternatively, businesses can use an agreed e-invoice format, provided that it allows the correct and complete extraction of the information required by Directive 2014/55/EU or is interoperable with it.

What about other invoices?

Invoices that do not meet these criteria, like PDFs and paper invoices, are qualified as “other invoices” and will still need recipient consent during the transition period.

Transitional periods explained

As mentioned above, the German e-invoicing obligation will apply from January 1, 2025, with transitional provisions only for taxable persons who are obliged to issue invoices. Invoice recipients will be required to accept the receipt of e-invoices without restriction. For example, taxable persons established in Germany must be able to receive e-invoices from 2025 when they receive supplies from other taxable persons established in Germany.

The following transitional provisions apply to taxable persons required to issue invoices:

  • 2025-2026: Paper and other electronic invoices (with the recipient's consent) will continue to be allowed alongside electronic invoices.
  • 2027: Taxable persons with a total turnover of up to €800,000 in the previous calendar year may continue to issue paper and other electronic invoices (with the recipient's consent)
  • 2027: EDI invoices will be allowed with the recipient's consent, provided they comply with CEN standards and both parties agree to their use.

By January 2025, companies in Germany will have to update their ERP systems to receive e-invoices without restrictions.

Simplify eInvoicing: Let's get started together!

Changes can be challenging, but you don't have to handle them alone. Contact us at Pincvision, and let us support you through the transition. We'll ensure your business meets the new e-invoicing requirements smoothly and efficiently. Reach out today to stay compliant and prepared.

Let's get in touch

Sign up: eInvoicing & eReporting timeline alert

There are many changes (coming up) in EU VAT legislation. We can imagine that it can be difficult to keep up with all eInvoicing and eReporting developments, therefore we have prepared a handy timeline for you. Would you like to receive a new timeline from us directly in your mailbox in the event of changes? Then sign up for the 'eInvoicing and eReporting timeline alert' via the form below and we will do the rest! ⏬

27 May 2024 at 1:59 pm
5 min
Published by:
Daniëlle van der Meulen-Idema
Sr. VAT Specialist
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