E-Invoice Obligation Exemptions in Germany: Who Is Actually Exempt in 2026?
Table of Contents
Germany's mandatory B2B e-invoicing has been in force since January 1, 2025. What most articles do not cover clearly: not every business has to send electronic invoices right now. There are exemptions, transition periods, and edge cases that trip up even experienced accountants.
Getting this wrong can jeopardize your VAT deductions, create friction with business partners, and trigger problems in tax audits.
Last updated: June 2026. This article reflects the Growth Opportunities Act (Wachstumschancengesetz, BGBl. 2024 I No. 108), the revised Section 14 UStG, and the BMF guidance letter dated October 15, 2024 (IV C 5 - S 6370/24/10001:001). Kleinunternehmer thresholds reflect the Jahressteuergesetz 2024.
5 Key Takeaways
- Receiving e-invoices has been required for domestic B2B businesses since January 1, 2025, where a VAT invoice obligation already exists. B2C and out-of-scope transactions are not affected.
- Sending e-invoices is being phased in. The deadline depends on your revenue.
- Small businesses (Kleinunternehmer under Section 19 UStG) are permanently exempt from sending e-invoices under the Kleinunternehmerregelung, but must still be able to receive them.
- B2C transactions are outside the scope of the mandate entirely.
- Invoices under EUR 250 (small-amount invoices) and transport tickets are explicitly exempt from the sending obligation.
Who Must Send E-Invoices? The Timeline
Germany's e-invoicing obligation rolls out in three phases. The legal basis is Section 27(38) UStG.
| Phase | Period | What Applies? |
|---|---|---|
| Phase 1 | Jan 1, 2025 to Dec 31, 2026 | All domestic B2B businesses must be able to receive e-invoices. Sending: PDF or paper still permitted with recipient consent. |
| Phase 2 | Jan 1, 2027 to Dec 31, 2027 | Businesses with prior-year revenue exceeding EUR 800,000 must also send e-invoices. |
| Phase 3 | From Jan 1, 2028 | All domestic B2B businesses in scope must send e-invoices. |
Key detail: The EUR 800,000 figure is a transition-period threshold defined in Section 27(38) UStG. It is not the Kleinunternehmer threshold under Section 19 UStG.
Every E-Invoice Exemption in Detail
Some transactions are outside the scope of the mandate entirely (B2C, cross-border without a German establishment). Others are explicitly exempt even though they fall within the general scope (Kleinunternehmer invoices, small-amount invoices, transport tickets, VAT-exempt transactions).
1. Small Businesses Under Section 19 UStG (Kleinunternehmerregelung)
The answer: small businesses do not have to send e-invoices. But they must be able to receive them.
The BMF guidance letter from October 15, 2024 confirms: businesses using the small business scheme under Section 19 UStG are permanently exempt from sending structured e-invoices. Updated thresholds under the Jahressteuergesetz 2024:
- Prior-year revenue: up to EUR 25,000 (formerly EUR 22,000)
- Current-year projected revenue: under EUR 100,000 (formerly EUR 50,000)
If you qualify, you can continue sending PDF invoices or paper invoices. Your business partners may still send you e-invoices in XRechnung or ZUGFeRD format at any time. You must accept and process them.
2. Small-Amount Invoices Under EUR 250 (Section 33 UStDV)
Invoices with a total amount of EUR 250 or less (including VAT) qualify as small-amount invoices under Section 33 UStDV. These are exempt from the e-invoice obligation.
3. Transport Tickets (Fahrausweise)
Transport tickets as defined by Section 34 UStDV, including train tickets, flight tickets, and similar documents for public passenger transport, are exempt from the e-invoice mandate.
4. VAT-Exempt Transactions Under Section 4 Nos. 8 to 29 UStG
Certain transactions that are VAT-exempt under Section 4 Nos. 8 through 29 UStG are not subject to the e-invoice obligation. These include:
- Financial and insurance services (Section 4 No. 8 UStG)
- Rental and leasing of real estate (Section 4 No. 12 UStG)
- Certain educational services (Section 4 No. 21 UStG)
- Medical treatments and healthcare services (Section 4 No. 14 UStG)
Mixed transactions: If your business generates both VAT-exempt and taxable revenue, you must issue e-invoices for the taxable portion.
5. B2C Transactions
The e-invoice mandate applies exclusively to B2B transactions between domestic businesses. Invoices to private individuals (B2C) are not affected.
6. Cross-Border Transactions
Purely cross-border supplies and services are outside the scope of Germany's domestic e-invoice mandate. A foreign business with no German establishment falls outside the rule entirely. However, if a foreign company has a permanent establishment in Germany and generates domestic B2B revenue from that establishment, the e-invoice obligation applies.
Transition Periods 2025 to 2028
Through December 31, 2026:
- Paper invoices remain permitted without restriction.
- PDF invoices in non-structured electronic format are permitted with recipient consent.
- Structured e-invoices can already be used voluntarily.
January 1, 2027 to December 31, 2027:
- Businesses with prior-year revenue exceeding EUR 800,000 must send e-invoices.
- EDI procedures remain temporarily permitted, provided invoice data can be extracted.
From January 1, 2028:
- No more transition rules, except the permanent exemptions listed above.
- All domestic B2B invoices require mandatory structured e-invoices.
Receiving vs. Sending: A Critical Distinction
The obligation to receive e-invoices has been in effect since January 1, 2025 for domestic B2B businesses. There is no transition period and no revenue threshold for receiving.
Even if you do not have to send e-invoices yet, your business must be technically capable of receiving and processing structured e-invoices. According to the BMF, the ability to receive e-invoices via email is sufficient.
What does not work: refusing to accept them. That has been impermissible since 2025.
Penalties for Non-Compliance
The UStG does not currently contain a specific fine for failing to send e-invoices. But that does not mean there are no consequences.
Input VAT deduction affected: A non-compliant invoice can affect the recipient's input VAT deduction until a formally correct invoice is issued.
Tax audit issues: Tax authorities are increasingly scrutinizing e-invoice compliance.
Processing delays: Partners that have transitioned to e-invoicing may no longer accept manual invoices.
Common Misconceptions
| Statement | True or False? | Explanation |
|---|---|---|
| "As a small business, I don't need to deal with e-invoices at all." | False | Receiving is mandatory, even for small businesses. |
| "PDF invoices sent via email count as e-invoices." | False | An e-invoice must be in a structured format (EN 16931). |
| "The obligation only starts in 2028." | Partially true | Sending is phased in. Receiving has been active since 2025. |
| "I can refuse to accept e-invoices." | False | Since January 1, 2025, you must accept them. |
| "Invoices under EUR 250 don't require e-invoicing." | True | Small-amount invoices per Section 33 UStDV are exempt. |
| "Cross-border invoices also fall under the mandate." | Mostly false | Purely cross-border transactions without a German establishment are outside scope. |
| "ZUGFeRD is not a valid e-invoice format." | False | ZUGFeRD from the EN 16931 profile onward is recognized. |
Checklist: Determine Whether You Are Affected
- [ ] Are you commercially active in Germany? If yes: receiving obligation applies since 2025.
- [ ] Do you issue B2B invoices? If yes: the sending obligation becomes relevant.
- [ ] Do you use the small business scheme with prior-year revenue under EUR 25,000? If yes: permanently exempt from sending.
- [ ] Are your invoice amounts regularly under EUR 250? If yes: no e-invoice obligation for those invoices.
- [ ] Do you generate exclusively VAT-exempt revenue? If yes: no sending obligation.
- [ ] Did your prior-year revenue exceed EUR 800,000? If yes: sending obligation starts January 1, 2027.
- [ ] Have you set up an email inbox for incoming e-invoices? If no: take action immediately.
Summary
Germany's e-invoice obligation exemptions are clearly defined, but they cover fewer businesses than many assume. Small businesses, small-amount invoices, and VAT-exempt transactions are exempt from the sending obligation. B2C and purely cross-border transactions are outside scope. The receiving obligation applies to domestic B2B businesses in scope since January 1, 2025, with no transition period.
The transition periods are running out. By 2028, the only relief available is from the permanent statutory exemptions listed above.
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Frequently Asked Questions
Two categories: Outside scope entirely: B2C, cross-border without a German establishment. Explicitly exempt from sending: small businesses under Section 19 UStG, small-amount invoices under EUR 250, transport tickets, and VAT-exempt transactions under Section 4 Nos. 8 to 29 UStG.
No business is required to send e-invoices in 2026. Paper and PDF remain permitted. The sending obligation begins for larger businesses (revenue exceeding EUR 800,000) on January 1, 2027.
No. Small businesses under Section 19 UStG are permanently exempt from sending. Thresholds: EUR 25,000 in prior-year revenue and EUR 100,000 projected current-year revenue.
An e-invoice must comply with the European standard EN 16931. In Germany, the recognized formats are XRechnung and ZUGFeRD (EN 16931 profile and above).
No. The transition rules apply exclusively to sending. The receiving obligation has been in full effect since January 1, 2025.
As long as your supplier is within a valid transition period, there is no issue. Once the sending obligation applies to them, you can and should request a compliant e-invoice.
If a non-profit is commercially active and generates taxable domestic B2B revenue, yes. For revenue from non-commercial activities or VAT-exempt transactions: no.
Yes. Any business may voluntarily send e-invoices. Many small businesses adopt e-invoicing proactively to digitize their processes.
🖼️ Visual placeholder: Decision tree — "Commercially active in Germany?" → receiving applies since 2025; "Issue B2B invoices?" → "Kleinunternehmer under EUR 25,000?" → exempt from sending; "Invoices under EUR 250 / only VAT-exempt revenue?" → exempt; "Prior-year revenue over EUR 800,000?" → must send from Jan 2027; else → must send from Jan 2028. Caption: "Follow the branches to your exact obligation and date."
About the Author
Swathy
Content Marketer
I’m a Content Marketer at Complyance, focused on e-invoicing. Over the years, I’ve created a wide range of content, including blog posts, whitepapers, and product guides, which have supported Complyance’s growth across markets such as the UAE and EU regions. My goal is to deliver content that is comprehensive, clear, accurate, and easy to understand, no matter how complex the topic.
