Introduction Of Mandatory EInvoicing In Germany

The Ger­man go­vern­ment co­ali­tion in­tends to battle VAT fraud and mo­der­nise the VAT pro­cess. As a first step, the Growth Op­por­tu­nities Act will now in­tro­duce man­datory eIn­voi­cing for na­tio­nal B2B tran­sac­tions from 2025.

The eInvoice as a basis for an electronic reporting system

The Growth Op­por­tu­nities Act com­pre­hen­si­vely amends the pro­vi­si­ons on in­voi­cing in the Ger­man VAT Act. In par­ti­cu­lar, a man­datory eIn­voice is to be in­tro­du­ced for do­mesti­cally ta­xable tran­sac­tions bet­ween do­mestic com­pa­nies (B2B). In this con­text, a do­mestic en­tre­pre­neur is con­side­red any busi­ness or en­tre­pre­neur that has its re­gis­te­red of­fice, ma­nage­ment, do­mi­cile or ha­bitual re­si­dence in Ger­many or a per­ma­nent es­ta­blish­ment that is in­vol­ved in the re­spec­tive tran­sac­tion.