As of page 237
- The draft law discusses a change to the Value Added Tax Act regarding electronic invoices (e-invoices).
- Currently, paper invoices have priority over e-invoices, and e-invoices can only be used with the recipient’s consent.
- However, the introduction of mandatory e-invoicing is necessary for the later introduction of transaction-based reporting of transactions in the B2B sector.
- By mandating e-invoicing, the process for businesses can be streamlined and digitalization opportunities can be promoted.
- The use of e-invoicing can simplify internal invoice processing and reduce bureaucracy.
- Additionally, errors in manual data entry can be avoided through the seamless transmission of invoice data. The introduction of mandatory e-invoicing is intended to allow businesses to benefit from e-invoicing early on and to stagger the necessary technical and organizational adjustments for both mandatory e-invoicing and the reporting system.
- The draft law also discusses the definition of an e-invoice and the conditions under which it can be used.
Source bundesfinanzministerium
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
- Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
Latest Posts in "Germany"
- Germany to Reduce Air Travel Tax from July 2026 to Boost Aviation Sector
- New Customs Authorization: Tax ID Requirement and Cross-Agency Checks Under Article 24 UCC-IA
- VAT Refund Application for International Organizations and Members: Process, Requirements, and Deadlines in Germany
- Input Tax Deduction and Gratuitous Value Transfers: New BMF Guidelines Effective from 2026
- No Transfer of Business for VAT When Selling Solar Modules to Newly Founded Partnerships
