Hans-Joachim Narzynski, Head of Unit at the Federal Ministry of Finance, confirmed at the IDst conference “Digital Transformation in VAT” that the formal request for a derogation to introduce mandatory e-invoicing for supplies in the B2B environment has been submitted to the European Commission.
In addition, it was confirmed that the application submitted is in line with the proposed requirements of the draft directive “VAT in the Digital Age – ViDA” and that the e-invoice mandate is thus based on the European standard for e-invoices (EN-16931).
It is still being determined when and how Germany will introduce an e-invoicing mandate, as the federal government is still in disagreement.
Nevertheless, it can be assumed that e-invoicing is now one step closer to implementation and will be synchronised with the new Europe-wide digital reporting requirements. A nationwide electronic reporting system for invoices could significantly reduce the susceptibility of the German VAT system to fraud and modernise the interface between the administration and businesses, while at the same time reducing bureaucracy.