The German Federal Ministry of Finance (BMF) has published a draft (“Growth Opportunity Act”) regarding a tax reform bill which includes mandatory e-Invoicing implementation for business-to-business transactions (B2B) in Germany. Expected timeline of adaptation of the act is by the end of 2023.
Essential bullet point as to mandatory e-Invoicing in Germany as below:
- Definition: From 2025, an e-invoice would be defined as an invoice issued, transmitted and received in a structured electronic format that enables electronic processing. All other invoices (e.g. paper or PDF invoices) would be considered to be “other invoices”.
- Format: Issued invoices should meet requirements of Directive 2014/55/EU (CEN-standard 16931). However, other formats, in particular paper or PDF invoices, would still be permitted until 31 December 2025.
- Obligation: The B2B e-invoicing obligation would not affect supplies to taxable persons established abroad or to private customers. In other words, taxable persons established in Germany would be required to issue e-Invoices for B2B transactions.