As we look ahead to 2025, it's important to be prepared for the upcoming e-invoicing regulations in Germany. These regulations will change how businesses handle invoices, and we at Basware are committed to supporting you every step of the way. In this blog, we’ll address the key areas to focus on and provide guidance on how to ensure your operations continue uninterrupted.
Germany: B2B E-Invoicing for 2025 and Beyond
Germany is actively moving forward with its e-invoicing initiative under the Wachstumschancengesetz (Growth Opportunities Act), which aims to simplify tax processes and promote business growth.
The law mandates that B2B e-invoicing will become obligatory for companies with over €800,000 turnover starting January 2027 and for smaller companies starting January 2028. However, all businesses must be able to receive electronic invoices starting January 1, 2025.
What You Need to Know for January 1, 2025
Receiving Invoices
From January 1, 2025, businesses with a German legal entity that receive domestic invoices must comply with the new mandate. All companies will need to be able to receive invoices according to the EU’s EN 16931 standard. This standard dictates the information invoices must contain but allows businesses some flexibility in choosing the formats and methods for receiving them.
Supplier Communication is key to this transition. Businesses must agree with their suppliers on how electronic invoices will be exchanged. Basware is here to support you in these discussions, providing tools and guidance for a smooth transition. Additionally, companies are required to archive the received invoices in the original format in which they were received.
Sending Invoices
While companies are not yet required to send invoices in EN-compliant formats starting January 2025, we highly recommend beginning the transition toward compliance. The first step is to ensure that your customers can receive compliant invoices and communicate your preferred formats. Once that’s in place, you can begin preparing to send invoices in compliance with the new standards.
Archiving Requirements
While the mandate introduces new requirements for handling e-invoicing, the archiving requirements in the manadate are not new. A business is required to archive the sent and received invoices, as you have been doing previously. The mandate effects your ways of working so that you'll need to be able to archive various formats. When archiving a received e-invoice, the business must archive the original document, regardless of whether the e-invoice was further enriched.
Our existing archiving solution, Basware Vault, ensures this compliance. The caveat is that organizations still require their suppliers to send compliant invoices with content and format in line with standard EN 16931. Basware Vault archives the original document, and the possible modifications according to your business need to ensure a clear audit trail.
If you currently have an existing subscription to use Basware Vault. Please make sure to review that you are using the archiving solution for your German business. If you do not have Basware Vault or an alternative compliant archiving solution we recommend contacting us to discuss further.
Necessary Actions
To summarize:
- Ensure readiness to receive invoices according to the EN 16931 standard by January 1, 2025.
- Communicate with suppliers to agree on the formats and methods for exchanging electronic invoices. Here is a template
- Prepare to send compliant invoices soon, even though they are not yet required.
- Archive all received invoices in their original format.
Download the Germany mandate FAQ guide to learn more
The new e-invoicing requirements aren’t just about compliance – they’re an opportunity to modernize and streamline your financial operations. Our comprehensive guide, compiled by e-invoicing expert Gustav Gnosspelius, answers all your burning questions to help you navigate the intricacies of this mandate with ease.
Download our guide to get a full overview of the German e-invoicing mandate and practical advice on how to prepare your business for 2025 and beyond.
Basware communications on this subject should not be construed as tax advice. Organizations should still consult with their official auditors for completeness.
