Tax audits are becoming an increasingly important part of modern tax systems across Europe, especially in the retail sector where transaction volumes are high and compliance requirements are constantly evolving. With different fiscalization models in place across Germany, France, and Italy, understanding what authorities actually check during tax audits is essential for retailers and software pro... Read more

Germany is expanding the role of XRechnung as a core structured e-invoicing format, moving from public-sector use to a mandatory standard for domestic B2B transactions between 2025 and 2028, based on EU Directive 2014/55/EU and national legislation. Businesses must adapt their systems and processes to handle XML-based invoices, ensure compliance with EN 16931 standards, and manage proper transmiss... 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