- Overview of e-Invoicing in Germany: e-Invoicing in Germany represents a shift from traditional paper-based invoicing to digital processes, enhancing efficiency, accuracy, and regulatory compliance, while supporting the country’s digital transformation agenda.
- B2B and B2G e-Invoicing: Business-to-Business (B2B) e-Invoicing allows for electronic invoice exchanges between companies, improving transaction accuracy and compliance, while Business-to-Government (B2G) e-Invoicing is mandatory for government transactions, aiming to increase administrative efficiency and speed up payments.
- Mandatory Implementation Timeline: e-Invoicing will become mandatory for all domestic B2B transactions in Germany starting January 1, 2025, with a phased approach that extends the requirement to all businesses by January 1, 2028.
- Requirements and Compliance: Businesses must use e-Invoicing software compliant with the XRechnung standard, ensuring that invoices contain necessary details for tax compliance and are formatted for electronic processing.
- Penalties for Non-Compliance: Non-compliance with e-Invoicing regulations can lead to significant penalties, including fines of up to EUR 5,000 per offense and potential exclusion from public contracts, emphasizing the importance of adherence to the mandated practices.
Source RTCsuite
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