Skip to content
TrueCommerce
TrueCommerce delivers an efficient e-invoicing solution that streamlines financial processes, ensures compliance with European regulations, and integrates smoothly with existing ERP systems to enhance accuracy and reduce errors.

Guidelines on B2B mandate in Germany published

/‎

/‎

/‎

On 15.10.2024, the Federal Ministry of Finance (“BMF”) published official guidelines for the upcoming e-Invoicing mandate, confirming its hands-off approach while hinting at future definitions of transmission channels in the context of tax reporting.

The BMF makes true on their promise to keep the public informed. They published their view on how to interpret the general mandate to use e-Invoices (“e-Rechnung”). The Growth Opportunity Act (“Wachstumschancengesetz”) introduced the obligation in March 2024, taking effect starting from 1.1.2025. The finalized letter (DOK 2024/0883282) posted on the official BMF website supersedes the draft published mid-June, which is not available on the website anymore. The BMF has asked for, received and considered numerous comments. The ministry used the input in the past 4 months to update the guidelines, thus continuing its collaborative and inclusive conduct.

Key Take-Aways

In summary, the final letter broadly confirms the approach taken in the draft adding a few clarifications and details. Key take-aways include that

  • the future tax reporting system will require a new definition of valid transmission channels as the BMF expects e-invoicing platforms to be prevalent (Rn41)
  • “readability” is defined as the technical readability of the structured representation of the invoice, as it’s the only binding portion and its standardization allows to create a standardized human-readable visualization in the future anyways (Rn6)

Taken together, usage of E-Mail-based transmission and/or hybrid formats seem to be considered as a transitional approach. In the future, these options may remain valid but mostly serve to pave the way for more robust and efficient implementations.

Differences in Detail

The Invoicing Hub previously analyzed the draft letter in detail already. The differences in the final version, on a more detailed level, include

  • the clarification that an invoice issuer may use the existence of a VAT ID (“USt-IdNr”) or future Economic ID (“W-IdNr”) as an indicator of the “business” status of the recipient (thus falling under the obligation to issue an e-invoice),
  • mentioning the option to issue e-invoices even below 250€ total, as long as the recipient does not object
  • adding “Peppol BIS Billing” as a valid example format for domestic e-invoices
  • while re-iterating that agreement on the actual (valid) format used is a decision between the parties
  • emphasizing that input tax deduction in hybrid formats prefers the structured data over the visual representation
  • the judicial option to request a valid e-invoice in case of receiving a non-compliant invoice

Conclusion

All in all the finalized letter puts the electronic invoice into a strong position. The BMF confirms its focus on establishing a legal framework only. In doing so, it puts responsibility to pick practical implementation choices on the economic operators themselves. As such, the “lean state” leaves the freedom to choose to those concerned.

At the same time, the letter announces the need of new regulations with the upcoming tax reporting mandate. The continued emphasis on the structured representation reaffirms the need to produce high-quality invoice data. This combination leads to truly digital invoicing implementation – at least to satisfy accounting and tax reporting requirements across the board.

Comments

No comment yet, add your voice below!


Add a Comment

Your email address will not be published. Required fields are marked *

Country Profile

Country regulation overview, resources, technical details, timeline, and more

Get your Project Implemented

Gold Sponsor

TrueCommerce
TrueCommerce offers an innovative e-invoicing solution that transforms financial operations for businesses of all sizes. Our platform allows finance teams to focus on core activities while we are managing electronic invoicing complexities.

By eliminating paper invoices, we enhance efficiency and reduce errors. TrueCommerce ensures compliance with European e-invoicing regulations, facilitating a smooth transition to a digital environment. Integrated with existing ERP systems, our service connects you with customers and suppliers effectively, leading to streamlined processes and significant cost savings.

Experience the benefits of a paperless invoicing system with TrueCommerce and optimize your financial workflows today.

Silver Sponsors

Contact us to learn about our sponsorship plans
Read More

Advertisement

Country Profile

Country regulation overview, resources, technical details, timeline, and more

Public session of the ECOFIN Meeting on November 5, 2024, about the adoption of ViDA (VAT in the Digital Age) package

ViDA package finally adopted by the European Council

A compromise has been reached among all EU member states before the final vote by the Parliament.

New Zealand introduces stronger requirements for B2G e-invoicing

More government agencies will adopt e-invoicing starting on January 1, 2026, in addition to implementing faster payment timelines.

E-Invoicing Exchange Summit coming to Kuala Lumpur (Nov. 25-27, 2024)

Gain insights from top e-invoicing experts and connect during a three-day summit packed with workshops, conferences, and roundtables.

Belgium releases an official list of compliant e-invoicing solutions

The list is designed to assist companies in choosing a solution in light of the upcoming B2B e-invoicing mandate in the country.

Guidelines on B2B mandate in Germany published

On 15.10.2024, the Federal Ministry of Finance ("BMF") published official guidelines for the upcoming e-Invoicing mandate, confirming its hands-off approach while hinting at future definitions of transmission channels in the context of tax reporting.