Mandatory eInvoicing approved: The Growth Opportunities Act introduces electronic invoicing for B2B in Germany
With the Growth Opportunities Act (WCG), which was also passed by the Bundesrat today, the way is now clear for mandatory eInvoicing in B2B transactions in Germany. And not a moment too soon. After all, as stipulated in the WCG, (at least) the receipt of eInvoices will become mandatory for German companies in just nine months.
But let’s start from the beginning: Amid the heated political debates of recent weeks, the long-awaited amendment to the Value-Added Tax Act—intended to introduce mandatory eInvoicing in the B2B sector—remained virtually unnoticed, stuck in a “hostage-like” limbo until the WCG was finally passed by the Bundesrat today.
The significance of today’s decision could hardly be greater. The amendment to the Value-Added Tax Act is expected to lead to significant additional tax revenue very soon. 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 the tax authorities to monitor input tax deductions more efficiently, which is expected to significantly reduce the VAT gap in Germany.
eInvoicing Drives Digitalization in the German Economy
But that’s not all: The gradual introduction of mandatory eInvoicing for all B2B transactions in Germany is also expected to trigger a major digitalization push in the coming months. This is because, in order to receive electronic invoices in the X-Rechnungen or ZUGFeRD 2.x formats, German small and medium-sized enterprises (SMEs) in particular must now undergo a massive digital upgrade.
The good news: What would be not only expensive but also extremely time-consuming to do on your own can also be achieved through a quick and easy connection to the TRAFFIQX network.
We’d be happy to explain how it works!
This mandatory eInvoicing system marks a significant step forward in the digitization of business processes and could help Germany close the gap with its international competitors.
Start Date and Timeline for the eInvoicing Mandate
Starting January 1, 2025, the acceptance of eInvoicing that complies with the EN 16931 standard will be mandatory for all German B2B transactions. The previous preference for paper invoices will be phased out. Likewise, it will no longer be mandatory to obtain consent as a receiver for standard-compliant eInvoicing.
However, there are, of course, exceptions and transitional provisions:
Invoices for small amounts up to €250 and travel tickets are exempt from this rule, as are invoices sent to consumers.
Until the turn of the year 2026/2027, companies with a previous year’s turnover exceeding 800,000 euros may continue to issue paper invoices, even without consent, and eInvoicing in non-standardized formats, subject to the receiver’s consent.
What happens next?
The phased introduction of electronic B2B invoicing in Germany is a clear indicator of the importance of digitalization in the financial sector and demonstrates how legal changes can bring significant financial and operational benefits.
However, only invoicing companies with an annual turnover exceeding 800,000 euros must fully implement the eInvoicing regulations by December 31, 2027. For companies with lower turnover, the “grace period” will not end until after this date.
For existing EDI systems that do not yet meet the requirements, a transition period until the end of 2027 is granted.
No matter what formats and transmission methods become necessary in the future for the tax- and legally compliant, fast, environmentally friendly, and secure exchange of invoice data, with the TRAFFIQX network, you—as both sender and receiver—are always on the safe side.
No matter what formats and transmission methods become necessary in the future for the tax- and legally compliant, fast, environmentally friendly, and secure exchange of invoice data, with the TRAFFIQX network, you—as both sender and receiver—are always on the safe side.
Secure your consultation now!
Want to learn more? Schedule your free consultation with our expert Lars Becher, Key Account Manager and Subject Matter Expert for e-invoicing and CTC within the TRAFFIQX® network.
Not a fan of online meetings?
Give him a call: +49 (0)6359 – 9 37 90
or drop him a line at: lars.becher@b4value.net