Author:
Juan José Cigarrán Magán.
When you see your neighbor’s beard trimmed
Digital transformation continues to make its way into business practices around the world, and Germany is no exception.
Recently, a significant step towards modernizing the business-to-business (B2B) invoicing system has been taken with the approval of new regulations that will mark a before and after for businesses in the country. Here we tell you everything you need to know about the new B2B e-invoicing regulations in Germany, their implications and how to prepare for the changes ahead.
Most important: January 2025 reception will be mandatory
In Germany, they have shortened the timetable for the implementation of the mandatory electronic invoice by imposing in January 2025 – in less than 9 months – the obligation to receive the invoice in electronic format.
We firmly believe that the implementation of electronic invoicing will be, also in Spain, a very fast process, since large companies will start to require their suppliers to use electronic invoicing before it becomes mandatory from a legal point of view.
In Germany they have shortened the deadline for mandatory receipt, probably an anticipation that the market will require the use of this technological capacity and that it will be a competitive advantage over other suppliers.
Development: Approval and Legal Framework
The Bundestag and Bundesrat have passed the Wachstumschancengesetz on March 22, 2024, introducing significant changes to the business-to-business e-invoicing system. This law is part of a broader strategy called Gesetzes zur Stärkung von Wachstumschancancancen, which aims to boost business growth through tax simplification and tax fairness.
Mandatory B2B Electronic Invoice:
As of January 2027, companies with an annual turnover of more than €800,000 will be obliged to issue electronic invoices. For companies with a turnover below this threshold, the obligation will start in January 2028.
As we said, it is crucial to note that all companies will have to be ready to receive electronic invoices as early as January 2025.
Integration with the European Proposal VAT in the Digital Age (ViDA):
Germany aligns its project with the European ViDA initiative, adopting the European e-invoice standard EN 16931, which will facilitate integration and compliance at the European level.
Implementation Schedule and Allowable Formats:
The proposed implementation schedule starts with the ability to receive electronic invoices in January 2025, followed by mandatory issuance for large companies in 2026 and full mandatory issuance in 2027. Supported formats include both paper (under special conditions) and electronic formats compliant with EN 16931, with XRechnung and ZugFeRD among the supported national formats.
B2G Electronic Invoicing:
In addition, it is important to mention the context of B2G (Business to Government) e-invoicing, where from April 2020, the federal states must support e-invoicing according to the European Directive 2014/55/EU, with connections via Peppol.
Conclusion:
The adoption of B2B e-invoicing in Germany represents a significant move towards digitalization and tax efficiency, aligning with European and global trends. For companies, it is essential to start preparing for these changes, adapting their systems and processes to comply with the new regulations and make the most of the opportunities for growth and simplification that this represents.
If your company needs advice on adapting to the new e-invoicing regulations, our experts are here to help.
Contact us to ensure your transition is as smooth and efficient as possible.
Do you need help? At Cigarrán Abogados we can help you (+34) 91.355.85.15
