- Growth Opportunity Act Signed into Law: On March 27, 2024, the German president signed the Growth Opportunity Act, which introduces mandatory electronic invoicing (e-invoicing) for domestic business-to-business (B2B) transactions, aiming to enhance tax compliance and streamline business operations.
- Phased Implementation Timeline: The mandatory B2B e-invoicing will be rolled out in three phases:
- January 1, 2025: All businesses must be able to receive electronic invoices.
- January 1, 2027: Companies with an annual turnover exceeding EUR 800,000 must issue electronic invoices.
- January 1, 2028: All businesses, regardless of size, must issue and process electronic invoices.
- E-Invoicing Requirements: The national formats for e-invoicing in Germany are XRechnung and ZUGFeRD, aligning with the European standard EN 16931. Businesses must generate, issue, and archive e-invoices in these formats, ensuring compliance with regulatory standards.
- Impact on Cross-Border Transactions: The integration of XRechnung with the PEPPOL network facilitates seamless cross-border transactions within the EU. This alignment with EN 16931 enhances compliance and makes international invoicing more efficient.
- Preparation for Compliance: Businesses should assess their readiness for e-invoicing, integrate scalable e-invoicing solutions, stay updated on regulatory changes, and consider partnering with reliable e-invoicing service providers like Storecove to ensure compliance and optimize their invoicing processes.
Source Storecove
See also
- E-Invoicing/Real Time Reporting – What can you find on VATupdate.com
- Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological
- Collection of E-Invoicing Guides – Worldwide – VATupdate
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
