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
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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.
