On October 15, 2024, the Federal Ministry of Finance (BMF) released official guidelines concerning the forthcoming e-invoicing mandate, reiterating its “hands-off” approach while suggesting forthcoming definitions of transmission channels in relation to tax reporting. The BMF has fulfilled its commitment to keep the public informed by publishing its interpretation of the general requirement to utilize e-invoices (e-Rechnung). Introduced in March 2024 by the Growth Opportunity Act (Wachstumschancengesetz), this obligation is set to take effect on January 1, 2025. The final letter (DOK 2024/0883282) available on the BMF’s official website replaces the draft released in mid-June, which has since been removed. The ministry has received and carefully considered numerous comments, incorporating this feedback to update the guidelines and maintain its collaborative and inclusive approach.

Key Insights

In summary, the final letter largely reinforces the strategy outlined in the draft, adding several clarifications and specifics. Key insights include:

• The upcoming tax reporting system will necessitate a new definition of valid transmission channels, as the BMF anticipates that e-invoicing platforms will become widespread (Rn41).
• “Readability” is defined as the technical clarity of the structured invoice representation, which serves as the only binding aspect; its standardization allows for the development of a standardized, human-readable format in the future (Rn6).
• The use of email-based transmission and/or hybrid formats seems to be considered a transitional measure. While these options may continue to be valid in the future, they primarily serve to facilitate the transition to more robust and efficient implementations.

Detailed Differences

The Invoicing Hub previously conducted a detailed analysis of the draft letter. Notable differences in the final version include:

• Clarification that an invoice issuer may reference the existence of a VAT ID (USt-IdNr) or future Economic ID (W-IdNr) as indicators of the recipient’s “business” status, thus requiring an e-invoice.
• Allowing the issuance of e-invoices even for amounts below €250 total, provided the recipient does not object.
• Inclusion of “Peppol BIS Billing” as an accepted format for domestic e-invoices.
• Emphasizing that the agreement on the valid format used is a decision made between the involved parties.
• Highlighting that input tax deductions in hybrid formats favor structured data over visual representations.
• The legal right to request a valid e-invoice in cases where a non-compliant invoice is received.

Conclusion

In conclusion, the finalized letter positions electronic invoicing favorably. The BMF confirms its focus on establishing only the legal framework, thus placing the responsibility for selecting practical implementation options on the economic operators themselves. This “lean” approach grants freedom of choice to the relevant stakeholders.

Simultaneously, the letter signals the need for new regulations associated with the upcoming tax reporting mandate. The ongoing emphasis on structured representation underscores the necessity for high-quality invoice data production. This combination leads to a genuine implementation of e-invoicing, at least to satisfy accounting and tax reporting obligations across the board.