- Mandatory E-Invoicing Implementation: Germany has mandated that all VAT-registered businesses issue structured, machine-readable electronic invoices for domestic B2B sales, transitioning from paper and PDF formats. E-invoices must be created in specific formats like XRechnung or ZUGFeRD 2.1+, and all businesses must accept e-invoices starting January 2025, with full compliance required by 2028.
- E-Invoicing Requirements and Exemptions: E-invoices must include detailed information about the seller, buyer, tax, and transaction, and must be transmitted in a compliant format via methods like email or Peppol. Exemptions apply to small invoices (≤ €250), passenger transport tickets, VAT-exempt transactions, and B2C transactions, which can continue to use traditional formats.
- Implementation Timeline and Process: The e-invoicing rollout will occur in phases: starting January 1, 2025, all businesses must be able to receive e-invoices; by January 1, 2027, large businesses must issue e-invoices; and by January 1, 2028, all businesses must fully comply. The e-invoicing process includes invoice generation, transmission, receipt and validation, and mandatory archiving for 10 years.
Source Cleartax
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
- Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE
Latest Posts in "Germany"
- Accidental Double Taxation Due to IOSS and § 21a UStG Application on Same Transaction
- Germany Mandates E-Invoicing in EU Languages for B2B Transactions from 2025 to 2028
- German E-Commerce Group Achieves Multi-Country VAT Compliance Post-OSS Suspension with hellotax Support
- VAT Deduction for In-Kind Formation of a GmbH with Car Contribution
- Briefing document & Podcast: Germany E-Invoicing B2B Mandate, Timeline and Compliance
