Industrial, economic, social… Germany is a global power in multiple fields, isn’t it? From easyap, focusing on e-invoicing, which is what concerns us, we take advantage of this article to delve into e-invoicing in Germany.Therefore, we will now analyze the requirements and procedures for digital invoicing in this country. It is essential there too and, just like in Spain, it ensures legal compliance and optimizes processes and commercial relationships across the entire business fabric.
Current Status of E-invoicing in Germany
In line with the rest of Europe and the world, e-invoicing is experiencing significant growth in Germany in recent years. In fact, it follows EU trends regarding its implementation. However, to see it more clearly, it is best to answer several key questions to clarify the landscape:
- Tax authority responsible for e-invoicing: Bundesministerium des Innern (BMI) or Federal Ministry of the Interior. At the federal level, each state or Land assumes its responsibility and management.
- Mandatory nature:Currently, only companies and self-employed individuals operating with the Public Administration are obliged to issue electronic invoices.
- Is an electronic signature required?No.
- How long must electronic invoices be stored?Currently, it is mandatory to store them for a period of 10 years (although, in certain cases, this obligation can extend up to 11 years).
Are B2B electronic invoices mandatory?
In turn, in November 2023, the German government launched the latest proposal for the Growth Opportunities Act (Wachstumschancengesetz). It includes the mandatory regulation on electronic invoicing between companies, or B2B. Likewise, according to this, definitively approved in March 2024, the regulation establishes the following deadlines:
- From 2025 –All German companies must be able to receive electronic invoices in EN16931 format. The requirement for the buyer to consent to receive electronic invoices is abolished.
- Until December 31, 2026 –Paper invoices and electronic invoices in formats other than EN16931 are still permitted, but will only be sent with the recipient’s consent.
- From 2027 – B2B electronic invoices will be mandatory for companies that exceeded 800,000 euros in turnover in 2026. Nevertheless, companies can also continue to use, for now, EDI from this date.
- From 2028 – It will be mandatory to issue B2B electronic invoices for any company. In turn, EDI will still be permitted as long as VAT information can be extracted in EN16931.
Therefore, looking at the deadlines, although they are similar to those in Spain, they may be somewhat more delayed in the implementation of online invoicing in Germany. Here, the mandatory nature of electronic invoicing is already being implemented from this year 2024.
Requirements for electronic invoicing in Germany
On the other hand, the electronic invoicing in Germany is regulated by legal and technical requirements.These are established, on the one hand, to guarantee the authenticity, integrity, and readability of invoices. On the other hand, to ensure their acceptance by tax and commercial authorities.
Each state can set or add specific aspects, but generally, every organization must consider two bodies (one legal and one technical in nature):
- Firstly, electronic invoices must comply with the legal requirements dictated by the German Fiscal Code (Abgabenordnung – AO) and in the Value Added Tax Act (Umsatzsteuergesetz – UStG). These laws specify the mandatory data that invoices must include.
- From a technical standpoint, e-invoices must comply with the data exchange standards and formats established by the Federal Ministry of Finance (Bundesministerium der Finanzen – BMF). The most commonly used standard in Germany is the ZUGFeRD. This combines a PDF file with structured data in XML format, which facilitates its automatic processing by IT systems.
In addition to legal and technical requirements, German companies must also comply with relevant regulations and standards. For example, in the field of public procurement, e-invoices are governed by the Public Procurement Law (Vergaberecht). Non-compliance leads to financial and legal penalties ranging from monetary fines to legal actions by tax authorities.
Phases of B2B E-Invoicing in Germany
Furthermore, B2B e-invoicing in Germany follows a well-defined process that encompasses various phases. We detail these phases below to help you better understand the e-invoicing flow in the German business context:
1. Issuance
This involves the creation and issuance of the e-invoice by the supplier or issuer, in accordance with legal and technical requirements. For this, specialized e-invoicing software will be necessary to facilitate compliance with the requirements.
2. Transmission
Once the e-invoice has been generated, it is sent via email, document exchange platforms, or solutions integrated into ERPs. The crucial aspect is to ensure data security and integrity to prevent alterations or fraud.
3. Receipt and Validation
Upon receiving the invoice, the recipient proceeds to validate it by verifying its authenticity and integrity, as well as reconciling data with internal records. At this point, automatic validation tools will ensure their compliance with the requirements.
4. Storage and Management
Finally, the electronic invoice, already validated, is stored. Thus, it can subsequently be consulted, audited, and therefore, comply with document retention requirements. That is why it is essential to maintain an efficient management system that provides quick access to archived electronic invoices, as well as guaranteeing their integrity and availability.
As you can see, B2B electronic invoicing in Germany is not very different from that in Spain. In fact, its objective is also to ensure efficiency, security, and legal and commercial compliance, but, in this case, adapting to the technical requirements of its business fabric.
Comparative Implications with Spain
Precisely, regarding requirements, we can also stop to compare electronic invoicing in Germany and Spain. Starting from the premise that we share many aspects, the world of e-invoicing in Germany presents significant differences:
Legal Aspects
In Germany, electronic invoicing is regulated by the German Fiscal Code and the Value Added Tax Act. In Spain, it is covered by the Law 25/2013, of December 27, which outlines a similar legal framework for the issuance of electronic invoices.
However, both countries require compliance with their specific standards and formats, such as the aforementioned ZUGFeRD in Germany and Facturae or other official formats in Spain.
Technical Aspects
Technically, similar technologies are used in Germany and Spain for the generation, transmission, and storage of electronic invoices. This includes the use of electronic signatures advanced to ensure the authenticity and integrity of invoices.
However, there may be differences in the preferred technological standards and platforms for businesses in each country. In turn, this can influence implementation processes and interoperability between systems.
Furthermore, culturally, Germany and Spain have different perceptions and practices. For example, in Germany, where business culture tends to be more conservative, there may be greater initial resistance to the adoption of new technologies. In Spain, e-invoicing is more accepted and adopted, especially in Public Administration and large companies, where its use is actively promoted.
And how to send an electronic invoice from Spain to Germany?
At this point, if you are a business owner or finance director, you come to the big question: how to send an invoice from Spain to Germany that complies with all requirements? Well, sending an electronic invoice to Germany involves following a few steps that we detail below to ensure its secure delivery and compliance.
- Prepare the electronic invoice with all mandatory data and according to German format and standards.
- Use a secure transmission method that guarantees data confidentiality and integrity.
- Send the invoice to the recipient in Germany, including the correct email address or contact information to ensure successful delivery.
- Confirm that the invoice has been received correctly via a tracking email or through the document exchange platform you use.
- Archive a copy in the document management system.
And the best part is, you can comply with German e-invoicing requirements, even as a Spanish entity, it’s within your reach. And in a very simple way: by contacting easyap. Our team, with international experience developing solutions for all types of companies, will help you.
At easyap, we design an integral solution that adapts to you and your business. It doesn’t matter if your clients and suppliers are German. Nor does it matter if you have to invoice according to the standards of Germany or any other country. Our software combines functionalities and adapts to each client, their sector, and their characteristics: it generates, sends, receives, and stores electronic invoices according to the company’s needs. We’ll show you whenever you want.
