Type: Legislation proposal
According to the German Federal Ministry of Finance (BMF), mandatory e-Invoicing will likely start on January 1st, 2025.
For established enterprises engaging in domestic B2B transactions, the requirement would be applicable. This system would comply with both the European e-Invoicing standard and the VIDA proposal (non-clearance model). The consultation will end on the 8th of May 2023.
Key features under consideration: Structured e-invoicing mandatory for live reporting to the tax authorities at the same time as issuing e-invoice to customers; New definition of structured e-invoices; Likely that taxpayers will be able to submit information simultaneously to the government and their clients through e-invoicing agents or similar outsourced services; only domestic B2B supplies; There is still uncertainty as to whether this applies to non-residents who send or receive invoices for domestic transactions; Sales invoices from small and medium-sized taxpayers may be introduced gradually; Potential cutoff for low-value invoices; Based on the EN 16931 EU e-invoicing standard, and the seller would be required to report; Complies with the changes to VAT proposed by the EC for the digital age.
This proposal comes in response to the new coalition government’s pledge to implement a digital reporting system in 2022 to assist close the VAT Gap.
Effective date: 1 January 2025