E-invoicing in Germany: who must issue e-invoices from 2027 and 2028

Timeline

1. 27 November 201815Federal E-Invoicing Ordinance (ERechV) in force: federal contracting authorities must receive and process e-invoicesFederal contracting authorities other than sub-central authorities, sector contracting entities and concession grantorsPublic sector (B2G)
2. 27 November 201915ERechV extended to sub-central federal contracting authorities, sector contracting entities and concession grantors (receiving)Sub-central federal contracting authorities, sector contracting entities and concession grantorsPublic sector (B2G)
3. 27 November 202013,15,16Mandatory e-invoicing to federal contracting authorities (XRechnung by default, via the federal invoice portal)Suppliers invoicing federal contracting authorities; direct orders up to €1,000 and a few other cases are exemptPublic sector (B2G)
4. 1 January 20251,2,11E-invoice becomes the legal default for domestic B2B invoices; all businesses must be able to receive structured e-invoices (no consent needed for the sender)All businesses established in Germany, including small businesses and businesses with only exempt suppliesReceive
5. 1 January 20256,4,3,5,19Retention period for invoices (VAT law) and accounting vouchers (tax code) cut from ten to eight yearsAll businesses, for every invoice and voucher whose retention period had not expired by 31 December 2024 (exceptions for credit institutions, insurers and investment firms)Archiving
6. 1 January 20263,19Eight-year VAT retention period for invoices also applies to credit institutions, insurers and investment firmsCredit institutions (incl. branches under § 53 KWG), insurers under federal insurance supervision and investment firms, for invoices whose old retention period had not expired on 1 January 2026ArchivingUnder the tax code these institutions still keep accounting vouchers for ten years (Art. 97 § 19a(3) EGAO).
7. Today, 3 October 2026
8. 1 January 20273,11,21Mandatory issuing of e-invoices for domestic B2B supplies: paper and PDF invoices no longer allowedBusinesses established in Germany whose total turnover in the previous calendar year exceeded €800,000Issue
9. 1 January 20283,11,8,21Mandatory issuing of e-invoices for domestic B2B supplies extended to all remaining businessesBusinesses established in Germany with prior-year total turnover up to €800,000 (small businesses under § 19 UStG remain exempt)Issue
10. 1 January 20283,11End of the EDI transition: EDI invoices must meet the e-invoice format rules (EN 16931 or a correctly extractable agreed format)All businesses established in Germany that invoice domestic B2B customers via EDI in a format not meeting § 14(1) sentence 6 UStGIssue
11. 1 July 203018,11EU digital reporting requirements (ViDA) for intra-EU B2B transactions, based on e-invoicesBusinesses making cross-border B2B supplies within the EUReportGerman implementing legislation not yet published; the planned national reporting system has no date or draft law yet.

Rules at a glance

Formats

XRechnung (German CIUS of EN 16931, UBL 2.1 or UN/CEFACT CII syntax)(default)11,10,14,16,22
ZUGFeRD 2.0.1 or later (hybrid PDF/A-3 with embedded XML), except the MINIMUM and BASIC-WL profiles(accepted)11,10,16
Any other format complying with EN 16931 and a syntax listed under Directive 2014/55/EU(accepted)2,10
Format agreed between supplier and customer (e.g. EDI such as EDIFACT), if all VAT data can be extracted correctly and completely into an EN 16931-compliant or interoperable format(accepted)2,11

Who is in scope

All businesses established in Germany (registered office, management, a permanent establishment involved in the supply, or failing those, residence) must be able to receive e-invoices. This includes freelancers, small businesses under the § 19 UStG scheme and businesses with only exempt supplies such as residential landlords. The issuing obligation covers taxable supplies between two businesses established in Germany, including self-billing, domestic reverse-charge supplies, the flat-rate scheme for farmers, travel services and the margin scheme. Not obliged to issue: small businesses under § 19 UStG, invoices up to €250, passenger tickets, supplies exempt under § 4 Nos. 8–29 UStG, supplies to consumers and to non-business legal entities (B2G follows its own rules). VAT-registered foreign businesses without a fixed establishment in Germany are not obliged to issue. Suppliers without an establishment in Germany whose German supplies fall under the reverse charge (§ 13b UStG) follow the invoicing rules of the Member State where they are established, unless self-billing has been agreed (§ 14(7) UStG).2,7,8,10,11

Thresholds and phases

B2B: no size threshold for receiving. For issuing, businesses with total turnover of more than €800,000 in the previous calendar year lose the paper/PDF option from 1 January 2027; all others from 1 January 2028. In a VAT group (Organschaft) the €800,000 test uses the turnover of the whole group; for self-billing the self-biller's turnover counts, and for invoices issued by a third party the principal's. Invoices with a total amount up to €250 (gross) may always be paper or PDF. B2G (federal): invoices after direct orders up to €1,000 are exempt from the e-invoicing obligation.3,7,11,13,21,10

B2B

Phased2,3,11Receiving is mandatory since 1 January 2025; the issuing obligation applies in full once the transition periods end (1 January 2027 for larger businesses, 1 January 2028 for all).

B2G (public sector)

Mandatory13,15,16,17Suppliers to federal contracting authorities must issue e-invoices since 27 November 2020 (direct orders up to €1,000 exempt). Each federal state (Land) sets its own rules for its authorities and municipalities, so supplier obligations differ by Land.

B2C

Voluntary2,11Invoices to private consumers are outside the obligation; an e-invoice can be sent to a consumer only with their consent.

Transmission

Free exchange (post-audit)11,13,16No prescribed channel and no clearance: e-mail, interfaces, shared storage, portals or Peppol are all allowed, as agreed between the parties. Federal B2G invoices go through the federal invoice portal OZG-RE (Peppol, e-mail, upload or web form; registration required).

Reporting

No e-reporting yet: invoice data is not sent to the tax authority. The Federal Ministry of Finance plans a later reporting system for near real-time, transaction-based reporting of certain invoice data, prepared by the e-invoice; the legislative proposal is still to come and no date has been set. Reporting of intra-EU transactions under ViDA applies from 1 July 2030.11,18

Transition and tolerance

For supplies made from 1 January 2025 to 31 December 2026, any business may still issue a paper invoice, or another electronic format such as PDF if the recipient agrees, provided the invoice is issued by 31 December 2026. For supplies made in 2027 this applies only to businesses with prior-year total turnover up to €800,000 (invoice issued by 31 December 2027), and EDI invoices not meeting the format rules remain allowed for all, with the recipient's consent, until 31 December 2027. While the relief applies, such invoices remain valid for input VAT deduction. Down-payment invoices issued before the relevant deadline need not be e-invoices.3,11

Penalties

No penalty specific to e-invoicing. Once the transition period ends for a supplier, a paper or PDF invoice where an e-invoice is required is not a proper invoice and in principle does not entitle the customer to deduct input VAT until corrected. Failing to issue a required invoice, or to keep invoices for eight years, is an administrative offence with fines of up to €5,000.9,10

Archiving period

8 years4,5,6Counted from the end of the calendar year of issue (eight years since 1 January 2025, previously ten). Books, records and annual accounts remain ten years; retention does not end while documents matter for an open tax assessment.

Archiving requirements

Keep at least the structured part (e.g. XML) of each e-invoice unaltered in its original, received format, ensuring authenticity, integrity and legibility for the whole period; the PDF part of a hybrid invoice only if it contains additional tax-relevant information such as booking notes. Storing outside a GoBD-compliant system is not in itself a VAT breach, but the GoBD apply for tax-code purposes, including machine evaluability. Businesses established in Germany store invoices in Germany, or elsewhere in the EU with full online access, notifying the tax office of the location. Storing invoices electronically outside the EU requires the tax office's prior approval on application (§ 14b(5) UStG with § 146(2b) AO).4,10,11,12,20

Authority

Federal Ministry of Finance (BMF, VAT rules) and Federal Procurement Office of the Federal Ministry of the Interior (federal B2G e-invoicing)

Sources

1. Gesetz zur Stärkung von Wachstumschancen, Investitionen und Innovation sowie Steuervereinfachung und Steuerfairness (Wachstumschancengesetz), BGBl. 2024 I Nr. 108 of 27 March 2024Bundesgesetzblatt / Federal Ministry of JusticeOfficial source, checked 3 October 2026
2. § 14 UStG – Ausstellung von Rechnungen (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
3. § 27 UStG – Allgemeine Übergangsvorschriften, paragraphs 38 and 40 (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
4. § 14b UStG – Aufbewahrung von Rechnungen (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
5. § 147 AO – Ordnungsvorschriften für die Aufbewahrung von Unterlagen (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
6. Viertes Bürokratieentlastungsgesetz, BGBl. 2024 I Nr. 323 of 29 October 2024Bundesgesetzblatt / Federal Ministry of JusticeOfficial source, checked 3 October 2026
7. § 33 UStDV – Rechnungen über Kleinbeträge (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
8. § 34a UStDV – Rechnungen von Kleinunternehmern (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
9. § 26a UStG – Bußgeldvorschriften (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
10. BMF-Schreiben vom 15. Oktober 2025: Einführung der obligatorischen elektronischen Rechnung bei Umsätzen zwischen inländischen Unternehmern (amends the letter of 15 October 2024 and the VAT Application Decree)Federal Ministry of Finance (BMF)Official source, checked 3 October 2026
11. Fragen und Antworten zur Einführung der obligatorischen (verpflichtenden) E-Rechnung zum 1. Januar 2025 (as of March 2026)Federal Ministry of Finance (BMF)Official source, checked 3 October 2026
12. BMF-Schreiben vom 14. Juli 2025: Zweite Änderung der GoBD (retention of e-invoices)Federal Ministry of Finance (BMF)Official source, checked 3 October 2026
13. § 3 ERechV – Verbindlichkeit der elektronischen Form (federal E-Invoicing Ordinance)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
14. § 4 ERechV – Anforderungen an das Rechnungsdatenmodell und an die ÜbermittlungFederal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
15. § 11 ERechV – InkrafttretenFederal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
16. FAQ zur E-Rechnung an den Bund (OZG-RE, XRechnung, ZUGFeRD, Peppol)Federal Procurement Office (Beschaffungsamt des BMI)Official source, checked 3 October 2026
17. E-Rechnung in den BundesländernFederal Procurement Office (Beschaffungsamt des BMI)Official source, checked 3 October 2026
18. VAT in the Digital Age (ViDA) – adopted 11 March 2025, Directive (EU) 2025/516European Commission, DG TAXUDOfficial source, checked 3 October 2026
19. Art. 97 § 19a EGAO – Aufbewahrungsfristen (transition for § 147(3) AO)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
20. § 146 AO – Ordnungsvorschriften für die Buchführung und für Aufzeichnungen, paragraph 2b (electronic books and records in third countries only with the tax office's approval) (consolidated)Federal Ministry of Justice (gesetze-im-internet.de)Official source, checked 3 October 2026
21. BMF-Schreiben vom 15. Oktober 2024 (BStBl I S. 1320): Einführung der obligatorischen elektronischen Rechnung, Rn. 62–65 (transition rules; Rn. 64: VAT group uses the turnover of the whole group) – copy of the official letter hosted by Collmex; the BMF original is no longer reachable by scriptFederal Ministry of Finance (BMF), copy hosted by Collmex GmbHSecondary source, checked 3 October 2026
22. XRechnung – standard, specification 3.0.2 and the two mandatory syntaxes of CEN/TS 16931-2 (UBL 2.1 and UN/CEFACT CII)Koordinierungsstelle für IT-Standards (KoSIT)Official source, checked 3 October 2026

What changed

• 3 October 2026Source added for XRechnung's two syntaxes (UBL 2.1 or UN/CEFACT CII, as published by KoSIT); no change in substance.
• 3 October 2026Added that German businesses need the tax office's approval to archive invoices electronically outside the EU (§ 14b(5) UStG with § 146(2b) AO).
• 3 October 20262028 e-invoicing milestone: in a VAT group the €800,000 turnover test uses the turnover of the whole group.
• 3 October 20262027 e-invoicing milestone: in a VAT group the €800,000 turnover test uses the turnover of the whole group.
• 3 October 2026Clarified that a German VAT group (Organschaft) applies the €800,000 turnover test for the 2027 e-invoicing obligation to the turnover of the whole group (BMF letter of 15 October 2024, para. 64).
• 3 October 2026Added that suppliers not established in Germany invoicing reverse-charge supplies follow their home state's invoicing rules, unless self-billing is agreed (§ 14(7) UStG).