On February 21, 2024, the mediation committee of the German parliament took significant steps towards the introduction of the Development Opportunities Act, a key piece of legislation aimed at changing the landscape of e-invoicing in Germany.

As professionals and business leaders, we need to be aware of legislative changes that impact our operational processes. Although these regulations are still under review, their implications for German VAT regulations and e-invoicing standards are significant.

Key points to remember:

E-invoicing in Germany: Starting from January 1, 2025, the acceptance of electronic invoices will become mandatory, signaling a significant shift towards digitization. Mandatory e-invoicing for B2B sales: By January 1, 2027, all German companies with an annual turnover exceeding 800,000 EUR will be required to adopt e-invoicing for domestic B2B transactions. For all taxpayers: From January 1, 2028, the mandate will be extended to all entities based in Germany, regardless of their turnovers. The Mediation Committee is set to reconvene on March 22, 2024, to further discuss this groundbreaking legislation.

What does this mean for your company? Adapting to these changes requires strategic planning and adjusting current invoicing processes. Assessing your company’s readiness for this digital transformation and exploring technologies and systems that can facilitate a smooth transition to e-invoicing is more important than ever.

Stay up to date We encourage regular monitoring of updates to stay informed as the implementation dates approach. Understanding these legislative changes is crucial for ensuring compliance and leveraging the growth opportunities presented by the digital transformation in Germany.