In a significant legislative development, the German Federal Council (Bundesrat) has approved the Growth Opportunities Bill on March 22, 2024. This legislation, aimed at bolstering growth opportunities, stimulating investment and innovation, and ensuring tax simplification and fairness, encompasses various provisions crucial for the economic landscape.
Among these provisions is a pivotal mandate necessitating the utilization of e-invoices in a structured format prescribed by the tax authorities.
The bill, poised for publication, delineates a phased implementation plan for the mandatory adoption of e-invoicing:
Phase 1: Commencing January 1, 2025
- Businesses must have the capability to receive invoices in an electronic format. However, until December 31, 2026, entities retain the option to issue invoices in non-electronic formats, provided that the recipient consents.
Phase 2: Effective January 1, 2027
- Businesses with annual revenues exceeding €800,000 are mandated to issue e-invoices.
Phase 3: Effective January 1, 2028
- All businesses operating within Germany must issue e-invoices, completing the comprehensive transition to electronic invoicing.
Previously endorsed by the lower house of parliament (Bundestag) on February 23, 2024, the bill now awaits publication in the official gazette before coming into effect.
This legislative measure underscores Germany’s commitment to embracing digitalization and streamlining administrative processes within the business realm.
