Germany Regulatory Updates March 2024

Germany: B2B E-Invoicing Planned for 2027.

As mandated by the Wachstumschancengesetz recently approved by the German Federal Council, the use of electronic invoices will be mandatory for B2B transactions in Germany from 2025. With effect from 1 January 2025, compliance with the EN16931 standard will be mandatory for all such transactions. This initiative is intended to advance digitalisation efforts and narrow the VAT gap, potentially resulting in an annual increase in tax revenue of more than ten billion euros.

The highlights are as follows:Mandatory electronic invoicing for B2B transactions from 1 January 2025.Applies to all sales exceeding €250. There is a transition period until 31 December 2026 for businesses to adapt. Compliance with format requirements for public procurement, such as XRechnung or the hybrid ZUGFeRD format (combining PDF and XML).