Following the release of the finalized B2B e-invoicing guidelines in October 2024, the German Ministry of Finance (MoF) has published a draft letter introducing several important clarifications and amendments. These updates aim to further define the scope and practical implementation of the e-invoicing mandate which went live back in January 2025.
I. Key Clarifications on Mandate Scope
1.) Small Businesses Exempt from Mandate:
A highlight of the draft guidelines is the proposal for small businesses (Kleinunternehmer) to remain outside the scope of the e-invoicing obligation. These businesses would continue to issue paper invoices even after the mandate becomes effective.
Although suppliers could issue compliant e-invoices to small business without buyer’s consent, and therefore small businesses would still need to be able to receive electronic invoices, they would not be required to issue electronic invoices.
2.) Small-Value Invoices and Passenger Transport Tickets:
Previously understood to be outside the scope, the updated draft confirms that invoices under €250 and passenger transport tickets may still be issued in paper form. However, the guidance now explicitly allows suppliers to issue compliant e-invoices for these transactions without needing the buyer’s approval
3.) Mixed Supplies:
Invoices that contain both in-scope and out-of-scope transactions must be issued in accordance with e-invoicing requirements.
II. Additional changes
- Format Errors: Structured electronic invoices that fail to meet the EN 16931 semantic standard due to format errors are classified as “miscellaneous invoices” and fall outside the compliant e-invoice definition
- Content Errors: invoices with missing mandatory data fields will not be considered compliant e-invoices which could impact VAT deduction
- Retention Requirements: E-invoices must be stored for eight years solely for VAT purposes. The structured XML portion must be retained in its original, unaltered form to ensure legal integrity.
- Authenticity and Integrity: The authenticity of origin, integrity of content, and legibility of electronic invoices must be guaranteed throughout the storage period.
If enacted, these proposed amendments will apply retroactively to invoices issued from 1 January 2025.
