The German government has issued a draft administrative guideline that introduces mandatory electronic invoicing (e-invoicing) for business-to-business (B2B) transactions, effective from January 1, 2025, in an effort to enhance tax compliance, reduce fraud, and streamline financial operations.
– The German Federal Ministry of Finance (BMF) has released a draft guideline for mandatory B2B e-invoicing starting January 1, 2025.
– The guideline outlines the framework and requirements for e-invoicing, including the acceptance of hybrid formats and adherence to international standards.
– The BMF aims to finalize the guidelines by the fourth quarter of 2024 after coordinating with German state tax authorities.
– Hybrid formats with both machine-readable and human-readable components are permitted, but discrepancies may trigger VAT liability.
– National e-invoicing standards (XStandard and ZUGFeRD) as well as compliant international formats (e.g., Italy’s FatturaPA, France’s Factur-X) are accepted.
– Additional service descriptions can be included as attachments, and contracts for ongoing services initiated before 2025 must issue e-invoices.
– E-invoices must be transmitted electronically, and corrections must be made electronically without issuing new invoices.
– Taxpayers can rely on service providers’ information, but must exercise due diligence.
– Businesses must adapt their accounting systems to comply with the new e-invoicing standards and formats.
– Taxpayers should start implementation projects promptly and be prepared for increased scrutiny and diligent recordkeeping.
– Implementation plans should allow for modifications to satisfy the final regulations, which may differ from the draft guidelines.
Source: globaltaxnews.ey.com
See also
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.
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