Introduction of the e-invoice on 1 January 2025
With the Federal Council’s approval of the Growth Opportunities Act on 22 March 2024, the issuing of electronic invoices, or e-invoices for short, will also become mandatory in the B2B sector in Germany. From 2025, every entrepreneur will be obliged to issue an e-invoice for sales to an entrepreneur based in Germany.
The e-invoice is a structured data record that is created, transmitted and received in an electronic format according to precise specifications. Unlike a paper or PDF invoice, an e-invoice is not a visual document and cannot be compared with a typical invoice.
The e-invoice must fulfil the European standard EN 16931. There are currently two authorised e-invoice formats in Germany (ZUGFeRD 2.0 and XRechnung). Furthermore, it must be possible to process the data record automatically without any media discontinuities.
This measure aims to combat fraud in the area of VAT in particular.
E-invoicing will be mandatory for national B2B transactions. This includes all taxable deliveries or other services between two companies based in Germany within the meaning of Section 2 UStG. Self-employed persons, small businesses and landlords are also obliged to issue e-invoices.
Advantages of e-invoicing:
- Save costs and time (shorter processing times, savings on paper and postage, everything digital from one system, error-reduced invoice verification)
- Location-independent invoicing (especially dispatch, receipt and archiving)
- Conservation of resources
From 1 January 2025, the receipt and processing of e-invoices will be mandatory for every entrepreneur. The technical requirements must be in place by then.
The sending of e-invoices in the B2B sector will be mandatory from 1 January 2025, but there are transitional regulations until the end of 2027. Paper and PDF invoices can continue to be sent with the recipient’s consent until 31 December 2026. From 1 January 2027, entrepreneurs who exceeded an annual turnover of EUR 800,000 in the previous year are obliged to issue an e-invoice. All simplifications will no longer apply from 1 January 2028 and every entrepreneur will be obliged to send an e-invoice in the B2B area.
The only exceptions to the obligation to create an e-invoice apply in the following cases:
- Small-value invoices (≤ 250 euros gross),
- tickets and
- transactions that are tax-free in accordance with Section 4 No. 8 to 29 UStG.
Summary of the legal timetable:
01.01.2025: All entrepreneurs must be able to receive e-invoices;
Paper invoices and other electronic invoice formats (PDF etc.) may only be sent with the recipient’s consent;
01.01.2027: Companies with an annual turnover > €800 thousand must send e-invoices in the domestic B2B sector
01.01.2028: All entrepreneurs must send B2B e-invoices. In addition, the EU Commission currently intends to introduce an electronic reporting procedure for e-invoices from 2028.
We will be happy to support you with the introduction of e-invoicing in your company.
Hannes Hellfeuer | TLI Steuerberater
Laura Böhm | TLI Steuerberater
