E-invoicing is coming - and places new demands on companies

E-invoicing and digitalised invoicing processes are intended to ensure faster and more efficient processing of invoices, greater accuracy and a reduction in formal effort. However, the new requirements pose challenges for companies: With the announcement of the Growth Opportunities Act on 27 March 2024, it is now clear that the obligation to issue electronic invoices, which previously only applied to public clients and their invoice issuers in Germany, will be extended to the B2B sector from 1 January 2025. Application at EU level as part of the "VAT in the Digital Age" (VIDA) initiative is expected to follow from 2028/2030.

An electronic invoice (e-invoice) is an invoice that is issued, transmitted and received in a structured electronic format and enables electronic processing. An invoice in PDF format does not fulfil this requirement.

• Mandatory introduction of the EN16931 invoice format (European CEN standard from the B2G sector), i.e. the XRechnung and ZUGFeRD formats that already exist today will generally also be permitted for the B2B sector.
• The EDI procedure with other electronic formats remains permanently permissible if extraction into EN16931 or into a format interoperable with EN16931 is possible.
• There are also exceptions. There is no e-invoice obligation for:
  • Small value invoices up to a maximum of EUR 250,
  • Invoices for travel tickets,
  • Tax-free transactions without the right to deduct input tax,
  • B2C sales.

Due to the rapidly evolving heterogeneous regulatory landscape, companies should develop a global strategy for e-invoicing and digital reporting.

In addition to strategy development, very concrete steps are required: