*UPDATE July 2023* The proposed mandatory implementation of e-invoicing in Germany has been postponed to January 1, 2026, according to the Federal Ministry of Finance (BMF). The revised plan involves a phased approach starting in January 2025, where e-invoices will be redefined and legalized. Until December 31, 2025, businesses can continue using paper or PDF invoices.
The German Ministry of Finance has released a document proposing the implementation of an electronic invoicing (e-invoicing) mandate for business-to-business (B2B) transactions, set to take effect in 2026. The proposal is based on the European Commission's Value Added Tax in the Digital Age (ViDA) framework.
Under the proposal, e-invoices would become the default and mandatory invoicing system for domestic B2B transactions, replacing paper invoices. The Ministry of Finance intends to modify tax and commercial laws to align with the ViDA proposal and the EU Directive on e-invoicing in public procurement.
The Ministry of Finance plans to recommend a January 1, 2026 effective date for the mandate, but before doing so, they are seeking feedback from businesses, software providers, and other stakeholders. They are particularly interested in comments and assessments regarding the effective date, as well as the implementation process. This includes suggestions on whether the mandate should be rolled out in phases based on company size, invoice amount, or other alternatives, as well as any applicable exceptions.
Ensuring global regulatory compliance with worldwide invoicing and tax mandates is a central business challenge for organizations operating in multiple geographies. To ensure compliance, you need a seasoned partner by your side who has a deep understanding of the constantly changing e-invoicing environment. With innovative solutions that ensure e-invoicing compliance in over 60 countries, Basware is that partner. Visit our interactive compliance map to stay up-to-date on this topic or contact us to speak with a compliance expert.