Under the Growth Opportunities Act (Wachstumschancengesetz) passed in March 2024, all sole traders and businesses are required to be able to receive e-invoices from 2025. The aim of e-invoicing is to advance digitalisation in the business world and simplify processes. This applies without exception to all entrepreneurs and also includes so-called small businesses within the meaning of § 19 UStG or businesses with VAT-exempt turnover, such as doctors.
There are no precise requirements for receiving invoices. It is sufficient to receive them by email. A separate mailbox for receiving e-invoices is not necessary. The invoice file must be archived digitally and in an audit-proof manner. Suitable transmission methods include the standard email, as well as transfer via a shared interface. If acceptance of an e-invoice is refused, the recipient has no entitlement to an alternative form of issue.
Previously, in addition to the traditional paper invoice, it was possible - provided the invoice recipient consented - to send invoices as PDF files by email. From 01.01.2025, when invoices are issued to other businesses (B2B - business to business), companies are obliged to send invoices as e-invoices. However, there are initially exceptions and transitional arrangements (see below). The obligation to issue e-invoices covers all taxable and VAT-liable supplies or services in the domestic B2B sector. This also means that if one of the two businesses is not based in Germany, an e-invoice does not need to be sent and other formats can continue to be used.
Exempt from the e-invoicing requirement are low-value invoices up to 250 euros including VAT, travel tickets, and VAT-exempt supplies within the meaning of § 4 Nos. 8 to 29 UStG. These can continue to be issued as conventional invoices.
The e-invoicing rules also apply to:
- Credit notes
- Invoices from small businesses
- Supplies where the recipient of the service owes the tax (§ 13b UStG)
- Average rate taxation for farmers and foresters
- Travel services
- Supplies to which the margin scheme rules apply
- Cases where only part of the invoiced supply is subject to the e-invoicing requirement
The following timetable is planned for the creation of e-invoices:
From 01.01.2025: Businesses may send e-invoices but may also continue to send (for two years) paper invoices and invoices in other electronic formats, e.g. PDF by email. This applies only where the recipient consents. The PDF format is not considered an e-invoice (see below). Consent for the sending of electronic invoices is no longer required.
From 01.01.2027: From 2027, turnover thresholds must be observed. Businesses with prior-year turnover exceeding 800,000 euros must send e-invoices in the B2B sector. Where the turnover threshold has not been exceeded, invoices in other formats may continue to be sent.
From 01.01.2028: From 2028, the creation and sending of electronic invoices is mandatory for all entrepreneurs.
As noted above, the PDF format is not considered an e-invoice format but falls, like the paper invoice, under the category of conventional invoices. Recognised e-invoice formats include, for example, the XRechnung, in which the invoice is transmitted as a structured data format (XML) that can be imported directly and without conversion or reformatting, or the ZUGFeRD format (from version 2.0.1, with the exception of the MINIMUM and BASIC-WL profiles), which in addition to the XML file also contains a PDF version that can be viewed on screen in the traditional manner without special import. The only requirement is that it must be an invoice format that complies with EU Directive 2014/55/EU. For example, use of the French format Factur-X is also permissible and compliant with the Directive. It is important that all mandatory invoice particulars continue to be included.
For ongoing contractual relationships, such as tenancy agreements, the contract may be treated as an invoice. For e-invoices, the contract is to be attached to the invoice for the first period, or the invoice document is to be issued in such a way that it is clear it is a standing invoice. Further invoices in such cases need only be issued again when relevant details change.
Important: Please ensure that you are able to receive e-invoices from 01.01.2025. As described above, this is also possible via a standard email inbox. Please also check whether your own accounting or invoicing software is capable of processing or creating e-invoices. If not, a higher version of the software or a different programme may be required. The requirement to receive or send invoices mandatorily does not take effect until 2027 or 2028 respectively; however, larger businesses or publicly owned businesses in particular will insist on receiving or issuing an e-invoice.