08.04.23

Legislative amendments to accommodate e-invoicing

The German Ministry of Finance (BMF) April 2023 discussion paper provided a good indication of Germany’s projected e-invoicing model. However, Germany’s legislative divisions have also been working to accommodate the mandate and cement e-invoicing into the country’s legislative framework.  

Draft amendments to the country’s Value Added Tax Law, Umsatzsteuergesetz (or UStG) are currently being drafted in Germany, which will provide the critical foundation for establishing e-invoicing in the country. 

More specifically within the legislation, the definition of an e-invoice is limited to that which is: 

• issued and received in a structured format, and 
• is compliant with the EU e-invoicing standard, the EN16931.  

The legislative draft amendments therefore align the definition of an e-invoice more robustly with the ideology expressed in the VAT in the Digital Age proposal.  

Please refer to this month’s update, ‘Growth Opportunity Act, including e-invoicing delay’ for further information concerning Germany’s e-invoicing timeline.