Type: Legislation
The European Commission has recently commenced the approval process to enable Germany to implement mandatory electronic invoicing for business-to-business (B2B) transactions. The planned implementation date is set for January 2025; however, due to an ongoing online consultation and the absence of technical specifications, the timeline for implementation is likely to be delayed.
In order for Germany to deviate from the restrictions outlined in Articles 219 and 232 of the EU VAT Directive, which limit the use of government-mandated e-invoicing in favor of traditional paper invoices, it is required to obtain approval from the European Commission.
Germany’s application for derogation is valid until December 2027, although there is a proposal within the EU to eliminate the need for seeking approval to deviate from the EU VAT Directive on e-invoicing, effective from January 1, 2023. This proposal is part of the comprehensive VAT in the Digital Age reforms.
Effective date: January 2025
