Key takeaways
- Germany confirms 2025 e-invoicing mandate: Final guidelines clarify accepted formats (excluding ZUGFeRD MINIMUM/BASIC-WL, adding Peppol BIS) and strengthen rules on security, signatures, and data transmission.
- Focus on compliance and interoperability: Businesses must align internal systems and contracts with new format, transmission, and verification standards under Germany’s Growth Opportunities Act.
- France faces possible delay: Technical setbacks in the rollout of its e-invoicing infrastructure suggest that mandatory B2B e-invoicing may not launch on schedule.
Germany finalizes e-invoicing guidelines ahead of 2025 launch
On October 15, 2024, the German Ministry of Finance released finalized guidelines for mandatory electronic invoicing for domestic businesses, set to take effect on January 1, 2025. This official version, which refines the June draft, clarifies critical elements of the Growth Opportunities Act (Wachstumschancengesetz) and reinforces Germany’s shift toward a fully digital invoicing landscape.
Impact of the new guidelines on e-invoicing
The guidelines include the following clarifications and updates:
- Exclusion of certain formats: ZUGFeRD profiles MINIMUM and BASIC-WL are not compliant with EN 16931 and, therefore, are excluded as permitted e-invoice formats.
- New format inclusion: Peppol BIS Billing has been approved as an acceptable e-invoice format, widening options for compliance.
- VAT ID use for domestic status: Invoice issuers may determine a recipient's domestic entrepreneurial status based on their VAT ID, except when contradictory information is present.
- Applicability to mixed tax services: The e-invoicing obligation extends to transactions with both taxable and tax-exempt components (e.g., those under Section 4 (8) to (29) UStG).
- Enhanced security measures: More information has been provided on employing qualified electronic signatures, EDI procedures, and internal control systems to guarantee invoice authenticity and integrity.
- Civil law agreement emphasis: There is a stronger focus on trading parties establishing agreements regarding the e-invoice format and transmission method under civil law requirements.
- Transmission Methods: Various options for e-invoice transmission are outlined, including email, electronic interfaces, shared storage locations, and internet portals.
- Role of E-Invoicing Platforms: E-invoicing platforms will be central to real-time data reporting, although specific timelines for this reporting obligation remain pending.
These updates underscore the evolving landscape of e-invoicing requirements, emphasizing compliance, security, and flexibility in transmission methods and formats.
Potential delay in France's e-invoicing mandate
France's mandatory business-to-business e-invoicing rollout, a core part of the nation’s tax compliance and digitalization strategy, is facing the possibility of further delays. A government press release on October 15, 2024, signaled that the project is off-schedule and shifting focus to two key components: a recipient directory (annuaire des destinataires) and a data concentrator (concentrateur des données).
Implications for businesses
The re-focusing of priorities has sparked concerns about whether the necessary infrastructure will be ready on time, hinting at possible delays. As a result, businesses are beginning to question if the original timeline can still be achieved.
Key points from the press release include:
- Role of PDPs:
The press release underscores the essential role of PDPs (Private Data Providers), expressing confidence in their ability to deliver high-quality, secure services that cater to the diverse requirements of businesses. - Responsibilities of PDPs:
PDPs are tasked with managing the issuance, receipt, and transmission of e-invoices, ensuring full compliance with the new regulatory standards.
This announcement, however, raises an important question:
- Implications for the Public Invoicing Portal (PPF):
This shift suggests that the Public Invoicing Portal (PPF) may no longer be responsible for fulfilling the obligations outlined in Article 242-G. While not explicitly stated, some industry experts view the announcement as indicating a possible reallocation of responsibilities toward PDPs.
Frequently asked questions
When does Germany’s e-invoicing mandate take effect?
Germany’s mandatory e-invoicing for domestic B2B transactions begins on January 1, 2025, under the Growth Opportunities Act (Wachstumschancengesetz).
Which e-invoice formats are accepted in Germany?
Peppol BIS Billing is now an approved format, while ZUGFeRD MINIMUM and BASIC-WL profiles are excluded for non-compliance with EN 16931.
How will invoices be transmitted under the new rules?
E-invoices may be exchanged via email, electronic interfaces, shared platforms, or portals, provided they meet authenticity and integrity requirements.
What’s happening with France’s e-invoicing rollout?
France’s B2B e-invoicing launch may face delays as the government shifts focus to developing its recipient directory and data concentrator infrastructure.
