Germany’s Ministry of Finance issues e‑invoicing guidance draft

1. Purpose and legal context of the draft letter

With only months left before the e‑invoicing mandate starts, many businesses still have questions about day‑to‑day implementation. To improve readiness, the German Ministry of Finance (BMF) published a regulatory draft letter on 13 June 2024 that explains the changes introduced by the Growth Opportunities Act (Wachstumschancengesetz) and translates them into practical instructions.​

The draft letter is available on the BMF site: BMF draft letter – introduction of e‑invoicing (German)open_in_new. The legal text of the Growth Opportunities Act can be consulted here: Wachstumschancengesetz – Federal Law Gazetteopen_in_new.​

The letter provides guidance on:​

• Rules introduced by the Growth Opportunities Act
• Invoice formats (electronic, hybrid, other)
• Issuance and reception of e‑invoices
• Storage of e‑invoices
• Input VAT deduction
• Transitional provisions

2. Key expectations for businesses from 1 January 2025

The draft clarifies what is expected of businesses when the mandate starts on 1 January 2025:​

• Companies must have the capability to receive e‑invoices that are compliant or interoperable with EN 16931.​
• Initially, it is sufficient to provide an email address to meet this reception capability requirement.​
• Trading partners are free to agree on other delivery methods—such as portals or interfaces—beyond simple email.​

Mandatory issuance of e‑invoices will be introduced gradually during 2027 and 2028, in line with the phase‑out schedule for paper and unstructured formats defined in the law.​

3. What counts as compliant e‑invoice distribution

BMF also clarifies how e‑invoices must be distributed under the new rules:​

• The e‑invoice must be delivered electronically, for example via email, electronic interface or download link.​
• Physical transfer of electronic files (for example on a USB stick) does not qualify as compliant e‑invoice distribution under the mandate, even if it was theoretically acceptable under previous legislation.​

This ensures that both the document format and the delivery method are genuinely electronic.

4. Refusal scenarios, VAT treatment and next steps

The draft letter addresses cases where a customer refuses to accept an e‑invoice or does not yet have the capability to receive one. In such situations, BMF states that the customer has no right to demand an alternative invoice format, and the supplier’s VAT obligations are considered fulfilled once the e‑invoice has been issued and sent correctly.​

The draft guidance is expected to be finalised and published in its definitive form in the fourth quarter of 2024. Until then, the letter provides an important preview of how the tax authorities interpret the new rules and what they expect from businesses in terms of systems, processes and communication with customers.