- Germany’s Ministry of Finance released draft guidance on implementing an e-invoicing mandate for domestic B2B transactions.
- The e-invoicing mandate will be gradually introduced starting January 1, 2025.
- An e-invoice will only be recognized if it is sent and received in a specific electronic format that allows electronic processing.
- The format must follow the European standard (EN 16931) or be agreed upon by the sender and receiver.
- The e-invoice must be authentic, its content must remain intact, and it must be machine-readable.
- Paper invoices or electronic formats that do not meet these requirements will be considered “other invoices.”
- Businesses in Germany must issue e-invoices for domestic transactions without needing the recipient’s consent, provided the recipient can receive e-invoices.
- If one of the business owners is not located in Germany, they do not have to issue an e-invoice.
- The mandate also applies to credit notes, small businesses, agricultural and forestry transactions, travel services, and differential taxation transactions.
- Exceptions include transactions to non-taxpayer legal entities or for property-related services to non-taxpayers, where paper invoices can be issued.
- Invoices under €250 or tickets for transporting people can always be issued and sent in paper form or another electronic format with recipient consent.
Source: kpmg.com
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.
