Electronic Invoicing

Germany: Introduction To The B2B Electronic Invoice

Germany: B2B electronic invoice

Germany is starting to figure out how to use electronic invoices between businesses in the country. The coalition government has asked the EU to repeal Articles 218 and 232 of the European Directive on electronic invoicing, which stipulates that companies must first seek permission from their suppliers to adopt electronic invoicing.

Germany wants to make it easier to send and receive bills just like it's done in France and Italy. A taxpayer sends their bill to the government. The government then checks it to make sure it's correct and then sends it to the person who needs to pay it.

The German government's suggestion would be consistent with the European Value-added Tax in the Digital Age (ViDA) initiative, which involves utilizing the EN 16931 European electronic invoice standard. While the government has yet to confirm an implementation date for mandatory business-to-business electronic invoicing, there is still no definitive answer.

Germany's e-billing ecosystem is decentralized to each of its federal states, so introducing a single B2B billing system will be a big challenge.

B2G e-Invoice in Germany

As of 18 April 2020, federal states must support electronic invoicing according to European Directive 2014/55/EU. The development of electronic invoicing depends on each federal state (Bundesland) publishing its own transposition of the European Directive through a decree law regulating communication systems, formats and entry points. The only requirement is that connection via Peppol must be offered in all cases.

he federal states that will soon require their suppliers to issue e-invoices are Mecklenburg-Vorpommern in 2023 and Hesse in 2024. In Rhineland-Palatinate, the target date is also January 1, 2024.

heck out the latest information on the implementation status of B2G invoicing in the states of Germany.

Would you like to know more?

Request more information

You may also be interested in reading about...

The "Crea y Crece" law makes the use of the Electronic Invoice mandatory among companies, SMEs and self-employed in Spain

The approval of the "Crea y Crece" Law makes the use of the B2B invoice mandatory in Spain.

Slovakia Continues to Advance its e-Invoicing Project

Slovakia has completed its communications platform called IS EFA to send electronic invoices to public administrations

Electronic Invoices Must Bear Electronic Signature in Portugal

For an electronic or PDF invoice to be valid, it must be electronically signed.