German Federal Council (Bundesrat) has recently published the Growth Opportunities Act (Wachstumschancengesetz), which aims to strengthen growth opportunities, investment and innovation as well as tax simplification and tax fairness.

Within this legal context, e-invoicing will become mandatory for German companies from 1st January 2025, even though some transitional provisions and exceptions are included in the Act. Invoices will need to be issued, transmitted, and received in a structured electronic format that enables electronic processing, in compliance with European standards adopted with the EN 16931.

The Act establishes a defined timeframe for the implementation of e-invoicing:

  • From 1st January 2025, all companies must be able to receive e-invoices. Nevertheless, other invoicing formats may still be used until 31st December 2026, provided that the invoice recipient agrees.
  • From 1st January 2027, issuance of e-invoices will be mandatory for companies with an annual turnover exceeding 800.000 EUR.
  • Finally, from 1st January 2028, issuance of e-invoices will be mandatory for all companies operating within Germany.

The use of electronic invoicing is already in force since 2020 for public procurement of the state authorities.

Additionally, in order to promote a smooth adaptation to the new requirements, Ministry of Finances has published a draft guide on electronic invoicing matters, which is already available for consultation. After review of associations, the final version is expected to be published in the last quarter of 2024.

Do you want us to help you with our Accounting, Tax, or Payroll services in Germany and/or other countries? Contact us now.

Can Auxadi help?

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

Local Knowledge – International Coverage

Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.