July 6, 2023
Germany Seeks EU Approval: Mandatory B2B E-invoicing on the Horizon
Germany seeks EU approval to mandate B2B e-invoicing, simplifying VAT collection & reducing administrative burden. Prepare for upcoming changes.
Germany has requested the EU's authorisation to derogate articles 218 and 232 of the VAT Directive to mandate B2B electronic invoicing in Germany, to simplify VAT collection and prevent VAT fraud.
Timeline
Germany may introduce mandatory electronic invoicing at any time once the derogation is approved.
Impact
Mandating e-invoicing for businesses for B2B transactions will simplify their compliance processes and reduce their administrative burden. It will also eliminate the costs of issuing, sending, processing, and storing paper invoices in the long run.
Businesses should consider reviewing their IT systems, ERP systems, and tax compliance processes to prepare themselves for the likely upcoming e-invoicing mandate.
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