Germany’s mandatory e-invoicing is here—and it’s a game-changer. By 2025, all businesses must be ready to receive e-invoices, with issuing becoming mandatory soon after. This shift means new compliance rules, potential costs, and process upgrades. But early adopters can gain a competitive edge and even unlock new revenue streams. In this post, we break down what the regulations mean and the key steps to keep your business ahead.

Germany is implementing mandatory e-invoicing and e-reporting, and preparation is crucial. The Growth Opportunities Act, adopted on 27 March 2024, sets the stage for e-invoicing, with draft regulations for mandatory B2B e-invoicing released on 14 June. This initiative aligns with the EU’s ViDA plan for e-invoice exchange and reporting by July 2030.

Timeline:

1st January 2025: Mandatory capability to receive and process e-invoices.

January 2027: Companies with annual turnover above €800,000 must issue e-invoices.

January 2028: All companies must issue e-invoices.

Why Should You Care? Because the new regulations will impact all businesses in Germany. Main challenges will be:

Legal Compliance: Non-compliance can result in hefty fines.

Costs: Initial implementation costs, but potential long-term savings through automation.

Operational Continuity: Failure to comply could disrupt cash flow and operations.

Competitive Advantage: Early adoption can streamline operations, improve efficiency, and even unlock new revenue streams.

 

 

2025: Mandatory Capabilities of Receiving and Processing E-invoices

All taxpayers must be able to receive e-invoices from their suppliers, but nothing else is mandatory at this stage. During 2025 and 2026, the following invoice formats will be allowed:

Paper

E-invoice according to EN 16931, which defines the semantic model for the required invoice data.

Other formats (e.g., XML, EDIFACT).

Entrepreneurs can continue issuing paper invoices without the recipient’s consent or send PDF or other electronic format invoices with the recipient’s consent until 31 December 2026.

 

 

2027: E-invoicing for Companies With Annual Turnover of More Than €800,000

From January 2027, entrepreneurs with an annual turnover exceeding €800,000 will be required to issue e-invoices. The B2B e-invoicing mandate will apply only to German-established businesses and fixed establishments of foreign companies.

The e-invoices must comply with the European standard for electronic invoicing (EN 16931) and the corresponding syntaxes listed under Directive 2014/55/EU. Paper invoices will still be permitted until 31 December 2027 for small and medium-sized enterprises with an annual turnover of less than €800,000.

It’s important to note that once the B2B e-invoicing requirement is fully implemented, only compliant e-invoices will be valid for VAT deductions. Non-compliant formats (e.g., PDFs or paper) will not be eligible for VAT deductions unless transitional rules apply.

Allowed Invoices After January 2027:

Paper: Only for companies with an annual turnover of less than €800,000.

E-invoices: In line with EN 16931, covering the required invoice data. Supported formats in Germany include:

Other formats (e.g., XML, EDIFACT): Allowed only under specific conditions.

 

 

2028: All companies have to issue e-invoices

From January 2028, all companies—regardless of their annual turnover—will be required to issue e-invoices. As a result, paper invoices will no longer be permitted. The regulations remain consistent with the 2027 update, with additional requirements to ensure full e-invoicing compliance. Allowed Invoices After January 2028:

E-invoices: Must follow the EN 16931 standard, which specifies the data structure for electronic invoices. National formats supported in Germany include:

Other formats (e.g., XML, EDIFACT): Permitted only if they are compatible with the EN 16931 format.

 

 

What Do You Need to Do?

Here are some actionable steps for your business:

Assess Your Current Systems: Evaluate your existing invoicing and accounting systems to determine if they are prepared for the changes.

Select a Certified Platform: Choose an invoicing provider that supports the regulations of all the countries your business operates in, while meeting your overall business needs. Opt for a certified and trusted supplier like Space Invoices.

Train Your Staff: Ensure your employees are familiar with the new processes and requirements.

Stay Informed: Keep track of regulatory updates, as changes can occur.

 

 

Present Regulations

Currently, B2G transactions are mandated to use e-invoicing in Germany, and all companies must be able to accept e-invoices. However, B2B and B2C e-invoicing remain voluntary, allowing businesses time to adapt and prepare for the upcoming mandates.

Click here for a complete Invoicing Guide for Germany.

 

 

Looking For Compliant German E-invoicing Supplier?

With Space Invoices, you can rely on a single API for global invoicing compliance, including both current and future German regulations. Our API simplifies e-invoicing processes, saving you time, cutting costs, and eliminating manual errors. Instead of spending valuable time on invoicing, let us handle it for you—while giving you the opportunity to earn invoicing revenue.

For more details on our API and compliance capabilities, click here or contact us.

 

This guide is for informational purposes only, as regulations and timelines can change frequently. While we strive to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This content was last updated on January 14, 2025.

Additional reading:

• 2030 Intra Community E-invoicing Mandatory EU ViDA
• 3 Best White-Label Invoicing APIs for B2B SaaS, Fintech, and Neobank Platforms
• Ask Your Developer: Key Insights for the Build vs Buy Debate in Invoicing API