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updated on 18.10.2023 | Reading time approx. 5 minutes
E-billing obligation in Germany from 1.1.2025– We are ready!
Value added tax: National legislative change on the way
On 1.1.2025, an e-invoicing obligation for B2B transactions with an accompanying reporting system is to be introduced in Germany. It is clear that e-invoices will have to be created and sent in the form of structured data in the future. In future, paper and PDF invoices will no longer be permitted as original invoices in the business-to-business environment. In terms of content, Germany will align its requirements with the ViDA initiative of the European Commission.
European VAT initiative: ViDA (VAT in a Digital Age)
The legislative proposal ViDA deals with harmonised regulations for the e-bill and the associated reporting system. The aim is to better combat VAT fraud. This bill deals with reporting obligations to national tax authorities. Cross-border intra-Community transactions are to become traceable on the basis of a structured e-invoice. For this purpose, a reporting system, CTC for short (Continious Transaction Controls), will be implemented on a mandatory basis. ViDA introduction is targeted for 1.1.2028.
The timeframe for mandatory e-billing is set nationally and internationally. The path to this goal is currently being defined.
The Federal Ministry of Finance (BMF) plans to gradually introduce mandatory electronic invoicing for B2B transactions within Germany on 1 January 2025. The basis for this is the draft bill published by the BMF on 17 July 2023 and the government draft discussed by the Federal Cabinet for the “Act to Strengthen Growth Opportunities, Investment and Innovation as well as Tax Simplification and Tax Fairness” (Growth Opportunities Act) of 30 August 2023.
The draft law was forwarded to the Bundestag on 8.9.2023 and awaits consultation and approval in the next course. According to reports, the law is to be finally passed by the end of 2023.
The challenges associated with the e-billing obligation are complex – many details still unclear.
The reporting system (Continuous Transaction Controls – CTC)
With CTC models, extracts of the invoice data (= report) are sent to the tax authorities after invoicing.
The reportable data is transmitted in a structured format and can therefore be evaluated by the tax authorities by machine.
What exactly is defined as an e-bill?
An e-bill is defined as an invoice that is in a structured format. Electronic Invoicing enables the automation of the complete invoice process (creation, sending, transmission, receipt and invoice processing). The EU favours the invoice standard DIN EN 16931, which has proven itself in practice and is also used for the X-invoice, as the file format.
E-invoicing obligation for your central regulation: We provide for Future-proof and smooth solutions
Good to know: SGH is not only your central settler, but also your service provider when it comes to e-billing, a unique service combination. Since 2006, renowned companies worldwide have been using our ivi platform for sending and receiving electronic invoices. Here we map all current national and international standards for e-bills and will also implement the future requirements of the mandatory e-bill and reporting system in a legally compliant manner.
Currently, SGH is the only provider in the market with this deep central settlement and e-billing expertise.
SGH solutions offer maximum flexibility
We offer you a flexible, recognised platform that can map various scenarios. Our solutions are open to different ones:
SGH as a provider: flexible, secure, multinational
As an expert in the P2P environment, we know national and international e-invoicing standards. Whether X-bill in Germany or FatturaPA in Italy – we know about the legal requirements and monitor current changes in the law. By keeping a constant eye on the applicable standards, we ensure that your document exchange functions reliably and that you are not surprised by changes at the last minute. As before, we offer one-stop processing for suppliers and customers.
Position data-based analyses powered by SGH Service
By evaluating position data in your invoices, you gain important insights for corporate management. You can measure your self-defined finance, logistics and sales KPIs through the automated reading of document data.
SGH – Your process integrator
We ensure the implementation of the new legal framework while your customised ERP solutions continue to function smoothly as before. We also reduce errors and irregularities through consistent automation and the use of state-of-the-art technologies.
Automated processes powered at SGH
If you have not already done so, you should further automate your purchasing and procurement process. SGH supports you with tried-and-tested digitisation solutions, enabling reliable, cost-efficient, resource-saving and transparent workflows – as your business partners also benefit from these advantages, you strengthen your customer and supplier relationships at the same time.
As your competent and flexible e-invoicing partner we ensure
You concentrate on your business and our experts take care of the smooth implementation of the e-invoicing obligation.
We offer you a highly flexible, future-proof e-billing platform.
SGH has been an e-invoicing service provider for years.
We are your fully integrated digitalisation partner.
SGH has interfaces to business and public authority platforms across countries.
We are here for you!
Feel free to contact us by mail and an expert from SGH Group will help you with your request as soon as possible.