The German Bundesrat (Federal Council) passed the Annual Tax Act 2024 at the end of last week. In theory, the law exempts very small companies from the duty to issue structured e-invoices for the foreseeable future.
The upper limit for companies to qualify for the exemption from January 2025 by virtue of micro-enterprise status, even after the grace period which runs until the end of 2027, has been set at a maximum turnover of €25,000 in the previous calendar year and no more than €100,000 in the current calendar year (previously: €22,000 / €50,000).
As of January 1st, all other companies will be legally required to send out electronic invoices. Companies are recommended to use suitable structured formats such as XRechnung or ZUGFeRD, which fulfill the VAT requirements. Exceptions still apply for small invoices amounting to less than €250 (gross) and travel tickets, which also serve as invoices.
It remains to be seen, however, whether larger companies actually continue accepting unstructured invoices from micro-enterprises in real practice. Companies of all sizes would, nevertheless, be well advised to turn their attention to e-invoicing long enough in advance. The EU Taxation Council has reached an agreement decreeing that all tax-relevant data included in invoices will need to be made available to tax authorities in real time by 2030. To achieve this, the Verband elektronische Rechnung – VeR (German e-Invoice Alliance) recommends using the Peppol network.
Retarus is a member of VeR and certified Peppol Access Point. Find out more about our E-Invoicing solutions from our website or directly from your dedicated local representative.
