Updated: October 2026
Germany is preparing for the next major milestone in its business-to-business (B2B) eInvoicing rollout. From 1 January 2027, many businesses will be required to issue electronic invoices as part of the country’s phased approach to digital VAT compliance.
With the transition already underway, businesses should understand the key deadlines, exemptions and technical requirements to ensure they are ready for the next stage of implementation.
Germany’s eInvoicing timeline
Germany is introducing mandatory eIvoicing in stages:
| Date | Requirement |
| 1 January 2025 | All domestic B2B taxpayers must be able to receive eInvoices. Voluntary issuance of eInvoices |
| 1 January 2027 | Businesses with turnover exceeding €800,000 in the previous year must issue eInvoices. |
| 1 January 2028 | eInvoicing becomes mandatory for all domestic taxpayers issuing B2B invoices. |
| 1 July 2030 | Businesses must issue eInvoices and submit reporting data for intra-EU B2B transactions under the EU’s VAT in the Digital Age (ViDA) initiative. |
Businesses should also be aware that transitional measures apply during the implementation period.
The details
What eInvoice formats are accepted?
- XRechnung, (EN 16931), an XML-based invoice format
- ZUGFeRD, a hybrid format combining structured data and a human-readable document
- Any other format agreed between the supplier and customer, provided it meets the requirements of European Standard EN 16931
Scope:
Domestic businesses for their domestic B2B supplies
Exemptions:
Mandatory eInvoicing does not apply to:
- Business-to-consumer (B2C) invoices
- Tax-exempt transactions
- Low-value invoices (currently under €250)
- Travel tickets
Channels:
The method used to send an eInvoice must be agreed between the supplier and the recipient. Available transmission channels include:
- Peppol
- EDI
- Service providers
Does the invoice need to be human-readable?
If a business doesn’t have a German Tax ID (Steuernummer), it can use its Business Identification Number (W-IdNr.) instead.
What if there are small differences between invoice versions?
Minor inconsistencies between the eInvoice and a regular invoice (like a PDF) are allowed, as long as they don’t materially change the content. For example, slight differences in item descriptions are okay.
What about credit notes?
Regular invoices issued before 2025 can still be corrected with non-electronic credit notes, until the end of 2028.
- Credit notes can still be issued as “other invoices” for transactions outside the eInvoicing scope.
- For eInvoices issued from 2025 onward, credit notes must also be in electronic format.
- Regular invoices issued before 2025 can still be corrected with non-electronic credit notes—until the end of 2028.
How are advance payments handled?
VAT can be deducted as usual when the final invoice is issued, even if part of the payment was made earlier.
If an eInvoice is used to bill the remaining balance, it must follow the new rules from 1 January 2025. However, if there are technical barriers, regular invoices can still be used for these payments until 31 December 2027.
Transitional rules until 2027
Germany has introduced several transitional arrangements to support businesses as they move to full compliance:
- Between 1 January 2025 and 31 December 2026, businesses may continue to issue invoices in a format other than an eInvoice.
- Businesses with turnover of up to €800,000 in the previous year benefit from a transition period until 31 December 2027.
- Existing Electronic Data Interchange (EDI) procedures that do not yet meet eInvoice requirements may continue to be used until the end of 2027.
These measures provide businesses with additional time to update systems and processes before full implementation.
What should businesses do now?
Although some transitional measures remain in place, the next compliance deadline is fast approaching. Businesses with annual turnover above €800,000 should assess their invoicing systems now to ensure they can issue compliant eInvoices from 1 January 2027.
For businesses operating across multiple jurisdictions, preparing early can help reduce implementation risk, improve efficiency and support broader digital VAT compliance requirements as eInvoicing continues to expand across Europe.
Is your business ready for Germany’s next eInvoicing deadline?
With mandatory eInvoicing expanding from 1 January 2027, now is the time to assess your invoicing processes, systems and compliance obligations. Early preparation can help you avoid disruption, reduce risk and stay ahead of changing VAT requirements.
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Authors
Lisa Dowling
Lisa is the Chief Tax & Client Enablement Officer at Fintua and a recognised expert in international VAT compliance and digital tax transformation. With more than 24 years of VAT experience, she leads Fintua’s global tax strategy, regulatory intelligence and customer & partner enablement. Lisa is a regular speaker at international tax and finance events, sharing insights on regulatory change, digitisation and the future of global compliance. At Fintua, she helps organisations navigate regulatory change and simplify compliance in an increasingly digital tax landscape.
