Germany: Authorization to implement mandatory e-invoicing for VAT purposes
The European Union has published EU Council Decision No. 2023/1551, granting Germany authorization to introduce a special measure that deviates from Articles 218 and 232 of Directive 2006/112/EC on the common system of value-added tax (VAT). The measure allows Germany to enforce mandatory electronic invoicing for transactions between taxable persons within its territory.
The goal is to combat VAT fraud and evasion by enabling earlier detection of fraudulent chains and automating verification of VAT compliance. Germany’s special measure will be effective from January 1, 2025, until either December 31, 2027, or the date when a directive amending Articles 218 and 232 is adopted, allowing for mandatory e-invoicing.
If necessary, Germany can request an extension of the measure and must submit a report evaluating its impact on VAT fraud, evasion, and administrative burdens on taxable persons.
Source: Europa.eu
