Electronic invoicing (“E-Rechnung”) in Germany: Implementation by AEB

From January 1, 2025, it will be mandatory to use electronic invoicing for transactions between domestic companies in Germany. AEB will take advantage of the statutory transitional provisions. Read here about AEB's current planning and general information from the Federal Ministry of Finance (BMF).

What is an electronic invoice?

An electronic invoice as defined by German law is characterized by a structured, machine-readable data format. The invoice details are transmitted as individual fields. Human readability is not required, but the e-invoice data structure can be embedded in a human-readable PDF document, for example. However, a PDF document without an embedded data structure does not count as an electronic invoice.

Implementation by AEB

Many companies will be working intensively on the 2024 annual financial statements at the start of 2025. Switching to electronic invoicing at the same time would tie up additional resources. To avoid this, AEB will make use of the applicable transition periods.

Companies will therefore continue to receive their invoices by email or letter as usual after January 1, 2025.

In the course of 2025, companies based in Germany will then gradually switch to e-invoices. AEB will provide all information on the changeover process, the exact schedule, and test files in good time. AEB thus ensures a smooth transition.

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More information in German is available from BMF or in further specialist articles.

The Federal Ministry of Finance provided the following information on June 13, 2024 (translation by AEB):

From January 1, 2025 – accompanied by transitional provisions – it will be mandatory to use an electronic invoice (“E-Rechnung”) for transactions between domestic companies in Germany. The BMF plans to publish a BMF circular on this in consultation with the supreme tax authorities of the federal states. The draft was sent to the associations on June 13, 2024, with the opportunity to comment. Due to the great importance of the topic for the economy, the draft is already being published at this stage for information purposes. Comments can be made via the associations if necessary. The final publication of the BMF circular is planned for the beginning of the fourth quarter of 2024.

Federal Ministry of Finance – DRAFT: Issuing invoices in accordance with Section 14 UStG; introduction of mandatory electronic invoicing for transactions between domestic businesses from January 1, 2025 (in German)

The following website also provides an overview of the electronic invoicing obligation (in German): Electronic invoicing becomes mandatory: E-invoices at a glance