Germany receives authorisation to proceed with B2B e-invoicing

On 25th July 2023, Council Implementing Decision (EU) 2023/1551 was issued, which authorises Germany to introduce a special measure derogating from Articles 218 and 232 of Directive 2006/112/EC on the common system of value added tax

This step will impact German established companies which issue invoices for B2B sales of goods and services (paper invoices will however still be allowed for intra-Community supplies of goods).

The derogation will be granted for a limited period, starting from 1st January 2025 and will be valid either up until 31st December 2027, or from the date on which Member States shall be required to adopt any national provisions required in line for ViDA, whichever comes first.

The proposed delay of one year (meaning that the derogation would come into effect on 1st January 2026) has not been mentioned in the decision.

Should Germany wish to extend the derogation period, it will be required to produce a report detailing how these measures have supported in combatting fraud, as well as simplifying tax collection.

Once e-invoicing has been established, it is expected that Germany will extend this measure to a reporting system. To avoid duplication of costs and unnecessary efforts, Germany will take into account the VAT in the Digital Age proposal when designing its national reporting system, aligning it with the expected requirements for ViDA.