Germany Issues Update on 2025 eInvoicing Mandate
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The German Ministry of Finance has published a draft letter providing guidance on the upcoming eInvoicing mandate. Here are the key takeaways:
?? Future E-Reporting Requirements: The Ministry of Finance has indicated that e-reporting requirements will be introduced later, even though current requirements lack an e-reporting aspect.
?? Receiving eInvoices: Businesses must be able to receive e-invoices ?? (AP) by January 2025. An email inbox ?? is sufficient to comply, though parties may agree on other electronic transmission channels.
?? Issuing eInvoices: Businesses will be required to issue electronic invoices in phases between 2027 and 2028, in either structured or hybrid formats:
?? Scope of eInvoicing Requirement: The e-invoicing mandate will cover all domestic transactions, except for:
?? Non-Residents: These requirements apply to businesses established in Germany. Non-residents without a registered office, domicile, or habitual residence in Germany are not subject to these requirements.
?? Input VAT Deductions: Once eInvoicing becomes mandatory, input VAT deductions will only be possible using electronic invoices.
The draft letter is now open for comments, with the final publication planned for the beginning of the fourth quarter of 2024.
For deeper insights and support in navigating the Global eInvoicing?universe , our expert team stands ready to assist, guiding each step with strategic, data-driven counsel.
Stay compliant and informed! ??
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