The German Ministry of Finance releases new publication regarding e-invoicing

On the 25th June 2025, the German Ministry of Finance issued revised draft guidelines in relation to e-invoicing in Germany, following on from the initial roll-out already taking place in January 2025, with the final steps to be implemented by January 2028.

Timeline for e-invoicing in Germany:

Since January 2025, it is a requirement for all German established companies to be able to accept an e-invoice, including small traders.

From January 2027, companies with an annual turnover exceeding EUR 800,000 will be obliged to issue e-invoices where required.

As of January 2028, this requirement will be extended to companies with an annual turnover up to EUR 800,000.

Main take aways from the new draft:

• E-invoicing will be required for domestic transactions between German established companies, including a German permanent established of a foreign company (when involved in the transaction). This will include domestic reverse charge sales, flat rate scheme and margin schemes, including TOMS. Small value invoices under EUR 250, and transport tickets will also not fall under this regulation.
• Only invoices which fulfil the requirements of the CEN standard EN 16931 (the European standard that defines the data model for electronic invoices) will be considered as e-invoices. The hybrid format “ZUGFeRD“, is the recommended format to be used by B2B invoice issuers, containing an xml format to be read electronically, but also a PDF version which can be visually reviewed. Other formats are permitted as long as they are compliant.
• Small businesses with an annual turnover of EUR 22,000 per annum will however not be required to comply with the e-invoicing issuance regulation.
• It is permissible to send an e-invoice several times, as long as the content has not been changed in any way.
• An invoice may be corrected, but the conditions laid out in the German VAT legislation for same must be complied with.
• For input VAT deduction, the invoice must have been sent as an e-invoice, without any errors such as the EN 16931 standard not being met, or the xml format being incorrect. Deduction is not permitted for invoices transmitted by any other means (such as PDF). The supplier can resolve this, by issuing an e-invoice in its place.
• The VAT legislation allows for transitional measures until the regulations are fully in force.
• The authenticity of the origin, the integrity of the content and the legibility of an e-invoice must be guaranteed, and the mandatory invoice content must, in line with German VAT act, be included in the core data structure of EN 16931. Taxpayers must maintain electronic invoices in their original form for at least eight years, ensuring that the structured part remains unaltered.

Next steps

The new draft is currently open for public consultation, which is expected to end in August 2025, with the final version of the letter to be expected by the end of the year.

The UStAE (the fiscal code Application Decree) will be updated to include guidance on the implementation of e-invoicing, now that the new draft letter includes amended sections.