The German Ministry of Finance has published the final guidance on mandatory e-invoicing on 15 October 2024. The principles of the guidance are to be applied to all sales made after 31 December 2024.

As established by the Growth Opportunities Act, e-invoicing will be mandatory from 1 January 2025 for specific transactions between domestic companies.

A domestic entrepreneur is typically defined as an individual or entity that resides within the country. Additionally, a domestic branch qualifies as a domestic entrepreneur if it participates in a relevant sales transaction.

The Ministry of Finance plans to extend the requirement for e-invoicing to foreign entrepreneurs who possess and lease properties in Germany.

The e-invoice is required to be issued, transmitted, and received in a structured electronic format that facilitates electronic processing, as stipulated in Section 14, paragraph 1 of the revised guidance. However, certain invoices are exempt from this requirement, including small-amount invoices not exceeding EUR 250 and transport tickets, such as those for trains or buses.

The electronic format must adhere to the standards set forth in Directive 2014/55/EU dated 16 April 2014, specifically the CEN format EN 16931, as referenced in Section 14, paragraph 1, sentence 6 of the revised guidance.

While transitional provisions are available for the issuer of the invoice, no such provisions exist for the recipient.

Starting from 1 January 2025, an entrepreneur who receives a relevant service and invoice must be equipped to accept and process an electronic invoice.If the total turnover of a business was below EUR 800,000 in the preceding year, additional invoices may be issued for transactions occurring until 31 December 2027.

For VAT groups, the overall turnover of the group is considered. However, there are no transitional provisions for recipients, who are required to accept compliant e-invoices starting from 1 January 2025.