Germany Implements Mandatory E-Invoicing Standards Starting January 2025 with Transition Periods

• Germany’s Growth Opportunities Act mandates electronic invoicing (e-invoicing) for B2B transactions starting January 1, 2025.
• The Federal Ministry of Finance has published a final decree regarding the implementation of e-invoicing.
• Transition periods for issuing e-invoices are established, with a general postponement to January 1, 2027, and an additional delay to January 1, 2028, for small and medium-sized businesses with annual turnover under €800,000.
• E-invoices not compliant with the new format can still be used until December 31, 2027.
• E-invoicing is mandatory for taxable persons established in Germany, regardless of VAT display.
• Exceptions to e-invoicing requirements include transactions with foreign taxable persons not established in Germany, private individuals, low-value invoices, and certain out-of-scope transactions.
• Existing invoice formats (paper or non-compliant electronic formats) can be used in cases where e-invoicing is not required, provided the recipient consents.
• Small business scheme participants are also required to issue e-invoices after transition periods, although a draft of the Annual Tax Act 2024 may introduce exceptions for simplified small business invoices.

Source: michaelamerz.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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