Growth Opportunities Act passed
After the Federal Council approved the Act to Strengthen Growth Opportunities, Investments, Tax Simplification and Tax Fairness (Growth Opportunities Act) on March 22, 2024, it is now clear that mandatory e-invoicing will be introduced on January 1, 2025. A postponement or longer transitional arrangements - as demanded by the Federal Council at the end of last year - are therefore off the table. Companies should therefore now push ahead with the implementation of mandatory e-invoicing as a high priority.
E-invoicing for services to other entrepreneurs in Germany
Invoices for services provided by one entrepreneur to another entrepreneur are affected by the e-invoicing obligation. In addition, both the supplier and the recipient of the service must be based in Germany. This means that services to non-entrepreneurs, certain tax-free services and small-value invoices up to €250 and tickets are not affected.
Structured machine-readable format
An e-invoice is an invoice that is created in a structured, machine-readable format and can be transmitted and received electronically. The basis for this format is the European standard EN 16931. Formats that already comply with this standard are e.g. XRechnung and ZUGFeRD. Paper invoices and other electronic formats that do not comply with the EN 16931 standard, such as PDF files, will be considered "other invoices" in future. Sending such other invoices is only permitted if there is no obligation to issue invoices electronically.
E-invoicing obligation from 1.1.2025
The e-invoice obligation will apply from 1.1.2025. This means that every company must be able to receive and process e-invoices from this date. There are transitional regulations for sending e-invoices. For example, the sending of other invoices - in particular paper invoices and PDF files - will remain permitted until 31.12.2026. However, this only applies to PDF files and other files that do not comply with EN 16931 with the consent of the invoice recipient. In 2027, this simplification will only apply to companies with a turnover of no more than €800,000.
Switch to e-invoicing now
Almost every company is affected by the e-invoicing obligation. The changeover should therefore be tackled promptly. The changeover should also be seen as an opportunity. After all, sending invoices electronically not only saves paper and postage, but also increases efficiency in the payment and posting of invoices thanks to the digitalization of processes. The experts at dhpg will support you with the introduction of e-invoicing.