Introduction
Businesses need to determine when e-invoicing is mandatory. This decision guide is intended to help.
Relevant factors
Both the supplier and the recipient must be businesses established in Germany. Invoices below EUR 250 and certain VAT-exempt supplies are exempt from mandatory e-invoicing.
Specific requirements
Public-law legal entities and property-related supplies remain subject to an obligation to issue an invoice, but an other invoice is sufficient in these cases.
For existing continuing contractual relationships, an initial e-invoice must be issued for input VAT deduction.
Conclusion
The decision guide provides a clear structure for identifying when e-invoicing is mandatory. Businesses should ensure that all relevant criteria are met to comply with statutory requirements.
Note
On 13 June 2024, the German Federal Ministry of Finance (BMF) published draft guidance for consultation with industry associations. It addresses invoicing under § 14 UStG when mandatory electronic invoicing is introduced for transactions between domestic businesses from 1 January 2025.
Andreas Pelekies
Managing Director of valitool GmbH, co-founder of FeRD and co-author of EN 16931. The ZUGFeRD format was developed under his technical leadership.
