Germany Issues Updated FAQ on Mandatory E-Invoicing
On November 5, 2025, the German Ministry of Finance (Bundesministerium der Finanzen) released an updated set of FAQs regarding the mandatory e-invoicing rules that have been in effect for B2B transactions since January 1, 2025. The revised guidance consolidates earlier explanations, updates legal references, and provides several clarifications relevant to both domestic and foreign businesses.
Key Updates in the Latest FAQs
Scope of the Issuance Obligation Clarified
The FAQs reaffirm that the obligation tapplies to domestic B2B transactions where the supplier is established in Germany. VAT-registered but non-established entities may explicitly note their non-established status on invoices. Recipients may rely on this statement when applying ordinary commercial care.
Clarification on the Legal Hierarchy
A new section was added stating that the VAT Act (UStG) and the Federal E-Invoicing Ordinance (ERechV) operate in parallel, with no hierarchical relationship between them. Each must be applied within its respective scope.
For example, the UStG requires e-invoices for transactions above EUR 250, while the ERechV applies to federal B2G invoices from EUR 1,000. The permissible transmission channels also differ: the UStG allows various methods for B2B invoicing, whereas OZG-RE remains mandatory for federal B2G transactions.
Transitional Period for Issuing E-Invoices
While all taxpayers must be capable of receiving structured e-invoices as of January 1, 2025, the obligation to issue them is being phased in gradually. The transitional period may last until 2028 for some taxpayers, during which businesses may continue to issue paper or non-compliant formats, depending on their size and digital readiness.
Exemption for Small Businesses and Technical Updates
The FAQs confirm that small businesses (Kleinunternehmer) remain exempt from the duty to issue structured e-invoices but must still be able to receive them in the prescribed format.
On the technical side, the ELSTER viewer now supports both XRechnung and ZUGFeRD, offering broader compatibility for reviewing structured invoice data.
The update also includes refreshed legal references, such as the BMF letters of 15 October 2024 and 15 October 2025, as well as the 14 July 2025 GoBD amendments on retention requirements.
There’s more you should know about e-invoicing in Germany – learn more about the new and upcoming regulations.
