Germany’s B2B E-Invoicing Mandate: Phased Rollout to Combat VAT Fraud and Modernize Tax System

• Germany is introducing a B2B e-invoicing mandate in phases, starting with inbound e-invoice acceptance.
• The mandate aims to reduce VAT fraud and align with the EU’s digitalisation goals.
• Germany’s move supports the EU’s VAT in the Digital Age initiative for a harmonised VAT reporting system.
• Germany has prior experience with e-invoicing through its B2G mandate using XRechnung.
• Phase 1 begins on 1 January 2025, requiring businesses to receive structured e-invoices.
• Phase 2 starts in 2026, with large businesses issuing e-invoices by 2027 and all businesses by 2028.
• The mandate applies to domestic B2B transactions, excluding certain transactions like exports and B2C sales.
• The e-invoicing mandate is part of the Wachstumschancengesetz, aimed at economic growth and digitalisation.

Source: snitechnology.net

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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