The purpose of this document is to explain the rules governing the tax audit regime in Germany, including the legal framework, the main focus areas of a tax audit, and the procedures followed by the tax authorities. It also outlines the increasing importance of digital data access and audit techniques. Read more

Germany has clarified that small businesses under Section 19 UStG are exempt from issuing e-invoices even after the 2028 mandate, allowing continued use of paper or PDF invoices. However, they must still be able to receive, process, and store structured e-invoices from January 1, 2025, as part of the phased transition to full digital B2B invoicing. Germany has confirmed how new e-Invoicing obligat... Read more

Germany and France will release ZUGFeRD version 2.5 on May 20, 2026, introducing support for gross invoices and aligning the format with the latest EN 16931 standards. Germany and France have announced a new version of the ZUGFeRD e-invoicing format (version 2.5), which will be released on May 20, 2026. The update is developed jointly by Forum for Electronic Invoicing Germany and FNFE-MPE (a Fren... Read more

Germany is considering a major tax reform that would increase the standard VAT rate to 21–22% while lowering reduced rates and introducing a 0% rate on essential goods to offset the impact on households. Germany is currently debating a major tax reform that could shift the burden from income to consumption. The proposed changes, discussed by the CDU/CSU-SPD coalition, include increasing the standa... Read more

Germany has clarified its e-invoicing transition rules, allowing paper and PDF invoices until the end of 2026 (or 2027 for smaller businesses), ensuring a gradual shift to digital invoicing. After these periods, mandatory e-invoicing will apply to domestic B2B transactions, giving businesses more time and clarity to prepare for compliance. Germany has updated its guidance on mandatory e-invoicing,... Read more

Germany has published a draft to replace the existing BpO 2000 with new External Audit Regulations (ApO), aiming to modernize and speed up tax audit procedures. The proposal introduces a stronger focus on risk-based, more targeted audits, along with structured cooperation between taxpayers and authorities through framework agreements. Read more

The ECJ ruled in case C-436/24 that customer loyalty points are not vouchers under EU VAT rules, as they do not create a legal obligation for the supplier to accept them as payment. Read more