- The Growth Opportunities Act mandates e-invoicing (E-Rechnung) for B2B transactions in Germany from January 1, 2025, with staggered transition periods extending the obligation to issue e-invoices for most businesses until January 1, 2027, and until January 1, 2028, for small businesses with turnover under €800,000.
- E-invoices must comply with the European standard EN 16931 and can be issued in the XRechnung format or ZUGFeRD format, with other compatible formats allowed, while the decree emphasizes the need for structured, machine-readable content.
- Taxable persons established in Germany are required to accept e-invoices starting January 1, 2025, and can do so by providing an email address; refusal or technical issues do not exempt issuers from compliance.
- After the transition periods, only e-invoices will be valid for input VAT deductions, although corrections to non-compliant invoices can be retroactively made with compliant e-invoices.
- The decree includes special provisions for various types of invoices, addresses ongoing compliance with public entities, and indicates that future EU-wide reporting systems may change e-invoicing channels and requirements.
Source PwC
