The EU Commission has set itself the goal of modernizing VAT law and combating VAT fraud in the EU more effectively. To this end, the structure of invoices is to be standardized across Europe in accordance with CEN standard EN 16931. Corresponding regulations are contained in the Growth Opportunities Act, which was approved by the Federal Council in March 2024. This affects all B2B transactions in Germany, i.e. services between companies. Whenever self-employed entrepreneurs conclude business transactions with another company in Germany (in some cases already in other EU countries), eInvoices will be used in future. B2C transactions, i.e. transactions with private individuals, are exempt from the obligation; here, the consent of the private individual is even required for electronic invoicing. Small-value invoices (up to €250) and tickets are also exempt.
Gradual introduction:
- From 01.01.2025: From January 2025, entrepreneurs must be able to receive and process incoming e-invoices.
- Until the end of 2026: Invoices for B2B sales may continue to be sent in paper form.
- Until the end of 2027: Invoices for B2B sales may continue to be sent in paper form if your turnover in 2026 did not exceed €800,000.
- From 2028: All companies must issue e-invoices. From then on, all relevant invoice information must also be reported to the tax office at the same time as the invoice is sent so that the tax authorities can combat tax fraud more effectively.
Free software:
The Federal Ministry of Finance would like to support companies with a free offer to create electronic invoices. Such a solution is currently being examined and may be made available to all companies before 01.01.2025. This is particularly interesting for companies that do not use e-invoicing software.