TrueCommerce is Recognized as a Leading Advisor for E-Invoicing Implementation in Germany 

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April 25, 2024

The Future of B2B Invoicing in Germany   

TrueCommerce was recently featured in Germany’s top online magazine for technology and innovation, IT Zoom Germany. The publication delivers expert insights, industry news, and analysis on IT trends, software development, cybersecurity, and emerging technologies.  

In Germany, the implementation of e-invoicing is set to become mandatory with the legislative move approved by the Federal Council on March 23, 2024. For UK companies conducting business in Germany, dive into our UK adaptation of the article to better understand the German technology landscape. Equip your business with the knowledge needed to thrive in the German market.   

Germany to Introduce Mandatory E-invoicing for B2B Transactions   

Companies across Germany have been required to electronically submit invoices for public sector clients or Business-to-Government transactions (B2G). This means that companies providing goods or services to the public sector must comply with e-invoicing formats and submit their invoices to authorities through various invoice portals.  

On April 17, 2023, the German Treasury proposed a new draft of legislation proposing the obligatory use of electronic invoicing for Business-to-Business transactions (B2B), as well. While details are still being discussed, electronic invoicing is expected to soon become an integral part of the VAT process in Germany and across Europe.  

From Paper-based to E-invoicing Starting January 1, 2025  

The scope of the new rules is also intended to include B2B invoices between companies. This signals a shift in traditional paper-based invoicing practices. According to the draft, the priority of paper invoices is expected to cease as of January 1, 2025. While many companies are still hesitating to implement electronic invoicing, the upcoming changes will likely become mandatory for sending and receiving invoices, driven by the government’s goal to reduce paper-based invoices.  

The introduction of a nationwide digital reporting system to combat VAT fraud is not currently planned. Experts expect the introduction of such a system in line with the EU’s VAT in The Digital Age (VIDA) initiative. The plan is to implement mandatory reporting via national platforms to the central EU database “VIES” from January 1, 2028 onwards.   

Supply chain network provider TrueCommerce is a member of the European E-invoicing Service Providers Association (EESPA) and actively participates in these ongoing discussions.  

A Benchmark for Other Countries  

The e-invoicing landscape in Germany will undergo profound changes, especially regarding B2B transactions. This approach aligns Germany with many other European countries where similar requirements are being implemented. The introduction of mandatory e-invoicing for B2B transactions and the possible introduction of cross-border e-reporting for Europe could serve as a benchmark for other countries in the future. This development has already gained worldwide observation.  

Ready to streamline your invoicing processes in compliance with Germany’s new regulations? Let us help you navigate the transition seamlessly. Contact TrueCommerce today for a demo of our comprehensive e-invoicing solutions tailored to your business needs.   

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