E-Invoicing in Germany: Key Information for 2025 - 2028

Businesses in Germany need to gear up for the mandatory implementation of B2B e-invoicing, as mandated by the Wachstumschancengesetz law which mandates the gradual transition to e-invoicing for all B2B and B2G transactions. The rollout will commence on January 01, 2025, and continue until January 01, 2028, in multiple phases to ensure all businesses can adapt. The government has not proposed a centralized e-invoicing platform, but businesses can utilize PEPPOL, which facilitates the exchange of electronic documents regardless of the e-invoicing software used. The law outlines specific regulations concerning format, archiving periods, and other essential details.

Initially, German federal states were required to accept e-invoices from April 18, 2020. By January 01, 2028, all businesses must issue and receive electronic invoices. From January 01, 2027, businesses with an annual turnover exceeding €800,000 will be required to issue structured electronic invoices. For transactions in 2027, companies below this turnover threshold can still issue paper or non-structured electronic invoices, provided the recipient agrees. This phased approach ensures that larger businesses, which typically have more resources, comply first.

December 31, 2027: EDI Formats for Invoices in 2026 and 2027

Businesses can issue invoices in Electronic Data Interchange (EDI) formats for transactions made in 2026 and 2027 until December 31, 2027, with the recipient's consent. This allows businesses to use existing technologies and systems to meet the new requirements without significant disruptions. The use of EDI formats is permitted regardless of the company's turnover.

January 01, 2028: Full Implementation of B2B E-Invoicing

By January 01, 2028, all businesses in Germany must issue and receive structured electronic invoices, marking the complete transition to e-invoicing for B2B transactions. This final phase is expected to greatly enhance business efficiency, improve cash flow management, and reduce the administrative burden of invoicing. Additionally, it will provide tax authorities with better tools to monitor compliance, reduce tax evasion, and improve overall tax revenue. Businesses will benefit from faster invoice processing, lower costs, and improved data accuracy.