Germany’s E-Invoicing Transformation: Key Dates, Compliance, and Impact on Businesses

• Germany is modernizing its invoicing processes under the VAT in the Digital Age movement.
• The phased rollout began in January 2025, transforming B2B invoicing.
• This change aims for smarter compliance, better interoperability, and less paperwork.
• Businesses in Germany or trading with German partners must adapt to this shift.
• The Growth Opportunities Act, passed in March 2024, initiated the e-invoicing transformation.
• From January 2025, companies must receive structured electronic invoices.
• The mandate aligns with EN 16931, requiring formats like XRechnung and ZUGFeRD.
• These formats enable automatic processing, reducing errors and speeding payments.
• The rollout is phased with key dates:
• Phase 1: January 2025, mandatory receiving of structured e-invoices.
• Transition until December 2026 allows paper or unstructured formats with consent.
• Phase 2: January 2027, large businesses must issue structured e-invoices.
• Phase 3: January 2028, full coverage for all B2B transactions in Germany.
• The mandate is part of an EU-wide shift to digital tax administration.
• Goals include reducing VAT fraud, streamlining cross-border trade, and lowering admin burdens.

Source: vatit.com

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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