Mandatory eInvoicing in the home stretch: Mediation Committee reaches compromise on the Growth Opportunities Act

As has been observed in recent months, one particularly promising aspect of the numerous “work in progress” items at the WCG received little attention during the latest deliberations as well: For, largely overlooked by political debate and the interested public, the amendment to the Value-Added Tax Act introducing mandatory eInvoicing in the B2B sector remains in a “hostage-like” holding pattern until the WCG finally secures an overall majority in favor of the bill.

And this amendment to the Value-Added Tax Act could soon lead to significant additional tax revenue. According to expert estimates, the switch to eInvoicing could generate annual additional revenue in the double-digit billions for the state coffers. This is because electronic invoice exchange enables more efficient control of input tax deductions by the tax authorities, which could significantly reduce the VAT gap in Germany.

Here are the key points regarding the eInvoicing requirement in Germany—for which no substantive changes were required as part of the compromise:

Start date and timeline for the eInvoicing requirement remain unchanged

Starting January 1, 2025, the acceptance of eInvoicing that complies with the EN16931 standard will become mandatory for all German B2B transactions. The previous preference for paper invoices will be phased out. Likewise, the requirement to obtain consent as a receiver for standard-compliant eInvoicing will no longer apply.