deadlines and steps for online sellers


The shift to e-invoicing in Germany

Germany is taking a significant step toward digital transformation with the implementation of mandatory e-invoicing for domestic B2B transactions. This move aligns with the EU’s “VAT in the Digital Age” (ViDA) initiative, aiming to boost tax compliance and streamline business processes. For online sellers operating in Germany, staying informed and prepared is essential to maintaining compliance and avoiding disruptions to your business.

Brenda Varela

Last Updated on 16 December 2024

Struggling with VAT compliance and invoicing requirements? Let hellotax guide you through the process—book a free consultation today!

Key deadlines for e-invoicing in Germany

The rollout of e-invoicing will take place in three phases:

  • January 1, 2025: All businesses must be ready to receive e-invoices.
  • January 1, 2027: Issuing e-invoices becomes mandatory for businesses with annual turnovers exceeding €800,000.
  • January 1, 2028: E-invoicing is mandatory for all businesses, regardless of turnover.

Learn more from the Tax Authorities

What is an e-invoice?

An e-invoice is not just a PDF file. It’s a structured electronic document, created in specific formats that enable automated processing. In Germany, accepted formats include:

  • XRechnung: Germany’s XML-based standard.
  • ZUGFeRD: A hybrid format combining a machine-readable XML file with a human-readable PDF.

These formats comply with EU standards, ensuring compatibility across member states.

Implications for online sellers

The e-invoicing mandate will impact how online sellers issue and process invoices in Germany. Here’s what you need to know:

  1. System Upgrades
    Ensure your accounting software can handle XRechnung and ZUGFeRD formats. Major ERP providers like SAP, Oracle, and Microsoft Dynamics already support these standards.
  2. Process Adaptation
    Update your invoicing workflows to comply with the mandatory formats. This may involve training your team and implementing new procedures.
  3. Tax Reporting Integration
    E-invoices simplify VAT reporting, making compliance easier and reducing the risk of errors during audits.
  4. Collaboration With Service Providers
    Partnering with e-invoicing specialists can ease the transition and ensure compliance.

Learn more about IVA changes in EU law

Benefits of e-invoicing for online sellers

The shift to e-invoicing comes with significant advantages, particularly for businesses in the e-commerce sector:

  • Enhanced efficiency: Automated invoicing saves time and reduces manual errors.
  • Cost savings: Eliminate paper, printing, and administrative costs.
  • Simplified VAT compliance: Structured formats make tax reporting and audits straightforward.

How to prepare for e-invoicing in Germany

Here’s how you can get ahead of the mandatory e-invoicing requirements:

  1. Assess Current Systems
    Review your invoicing and accounting tools to ensure they can generate XRechnung or ZUGFeRD-compliant invoices.
  2. Consult VAT Experts
    hellotax specializes in VAT compliance for online sellers across Europe. Our tools and services simplify e-invoicing and tax reporting. Book your free consultation now!
  3. Educate Your Team
    Train your employees on the technical and legal aspects of e-invoicing.
  4. Test Your Processes
    Implement pilot projects to ensure smooth operations before the deadlines.

Book a free consultation

Our VAT experts are happy to help you. Book a free consultation today!

Stay compliant with hellotax

The move toward mandatory e-invoicing is part of Germany’s broader effort to modernize tax compliance. Preparing now will not only help you meet legal obligations but also improve your invoicing efficiency and overall business operations.

At hellotax, we specialize in helping online sellers navigate VAT compliance challenges across Europe. From ensuring VAT compliance to offering guidance on e-invoicing requirements, we’re here to support your business.

Don’t wait until it’s too late! Contact us today to ensure your business is ready for Germany’s e-invoicing revolution.




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