Why this market is moving now
- Receiving structured e-invoices has been mandatory for all domestic businesses since 1 January 2025.
- The general transition period for paper and PDF invoices ends on 31 December 2026.
- Smaller issuers with prior-year turnover up to 800,000 EUR get until 31 December 2027.
- EDI users keep a transition until 31 December 2027.
Key figures
Each figure names the source it came from. Open the source list below to read the quoted line.
| Figure | Value | Year | Source |
|---|---|---|---|
| Since 1 January 2025, German businesses must be able to receive EN 16931-compliant e-invoices, with phased issuing duties for large businesses from 2027 and all businesses by 2028. | 1 January 2025 | 2025 | European Commission, Digital Building Blocks |
| Under the VAT Act (UStG section 27(38)), invoices for supplies made in 2025 and 2026 may still be sent on paper or in a non-compliant electronic format until 31 December 2026, with the recipient's consent for electronic formats. | 31 December 2026 | 2026 | Federal Ministry of Justice |
| Issuers with prior-year total turnover of 800,000 EUR or less may keep using paper or non-compliant electronic invoices until 31 December 2027. | 800,000 EUR prior-year turnover threshold | 2027 | Federal Ministry of Justice |
| Invoices for supplies made in 2027 that are exchanged by electronic data interchange (EDI) may, with the recipient's consent, stay in a non-compliant electronic format until 31 December 2027. | 31 December 2027 | 2027 | Federal Ministry of Justice |
| About 3.1 million German businesses filed VAT advance returns in 2024, covering expected turnover of about 8.8 trillion EUR excluding VAT. | 3.1 million businesses | 2024 | Statistisches Bundesamt |
| Destatis recorded nearly 7.3 million taxable businesses in the 2022 VAT assessment statistics, 68.27% of them natural persons or sole traders. | 7.3 million businesses | 2022 | Statistisches Bundesamt |
| About 3.60 million German businesses (49.40%) had turnover of up to 22,000 EUR in 2022, the small-business group most affected by the receiving duty. | 3.60 million businesses | 2022 | Statistisches Bundesamt |
| Around 270 federal administrative bodies use Germany's central federal e-invoice platform for B2G invoices, which public bodies have had to receive since 1 November 2019. | 270 federal administrative bodies | 2026 | European Commission, Digital Building Blocks |
Sources and method
The figures on this page come from the public sources listed below. Read how we work.
- European Commission, Digital Building Blocks: eInvoicing in Germany (2026-10-19)
Quoted lines
- Figure 1
Under the Growth Opportunities Act, companies must be able to receive EN-compliant eInvoices as of 1 January 2025
- Figure 8
Around 270 admin. bodies of the unmittelbare and mittelbare Bundesverwaltung, using the central federal eInvoice platform
- Figure 1
- Federal Ministry of Justice: UStG section 27 - Allgemeine Übergangsvorschriften (n.d.)
Quoted lines
- Figure 2
bis zum 31. Dezember 2026 für einen nach dem 31. Dezember 2024 und vor dem 1. Januar 2027 ausgeführten Umsatz auf Papier
- Figure 3
wenn der Gesamtumsatz (§ 19 Absatz 2) des die Rechnung ausstellenden Unternehmers im vorangegangenen Kalenderjahr nicht mehr als 800 000 Euro betragen hat
- Figure 4
bis zum 31. Dezember 2027 ... in einem elektronischen Format, das nicht § 14 Absatz 1 Satz 6 entspricht, ausgestellt werden, wenn diese mittels elektronischem Datenaustausch (EDI)
- Figure 2
- Statistisches Bundesamt: Umsatzmilliardäre erwirtschafteten mehr als ein Drittel aller Umsätze (n.d.)
Quoted lines
- Figure 5
Insgesamt gaben im Jahr 2024 rund 3,1 Millionen Unternehmen Umsatzsteuer-Voranmeldungen mit einem voraussichtlichen Umsatz in Höhe von rund 8,8 Billionen Euro
- Figure 5
- Statistisches Bundesamt: Knapp 7,3 Millionen umsatzsteuerpflichtige Unternehmen im Jahr 2022 erfasst (2026-10-20)
Quoted lines
- Figure 6
wurden für das Berichtsjahr 2022 knapp 7,3 Millionen steuerpflichtige Unternehmen registriert
- Figure 7
Knapp 3,60 Millionen bzw. 49,40 % aller steuerpflichtigen Unternehmen erwirtschafteten in 2022 Umsätze bis 22 000 Euro.
- Figure 6
Companies to watch
Lexware (Haufe Group)
German small-business accounting software with a public e-invoice guide page. Source: https://www.lexware.de/e-rechnung/
sevdesk
German online accounting software that offers e-invoice creation to small businesses. Source: https://sevdesk.de/e-rechnung/
Basware
Invoice automation vendor whose site lists e-invoicing network services. Source: https://www.basware.com
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the European Union market - 03Market size, 2021 to 2025
Historical series and growth rates - 04Outlook to 2031
Base, low and high scenarios with stated assumptions - 05Rules, policy and deadlines
Regulation and programmes that change demand - 06Drivers and barriers
What accelerates or slows adoption, by customer segment - 07Prices, costs and margins
Unit economics where public data allows - 08Competitive landscape
8 to 12 company profiles with recent moves - 09Opportunities and risks
For new entrants, suppliers and investors - 10Method and sources
Every assumption and source, listed
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Frequently asked questions
When is e-invoicing mandatory in Germany?
The European Commission says German businesses must be able to receive e-invoices from 1 January 2025. The VAT Act allows paper or PDF invoices until 31 December 2026 and, for small issuers, until 31 December 2027.
Which Germany businesses get extra time to issue e-invoices?
Under section 27(38) of the German VAT Act, issuers with prior-year turnover of 800,000 EUR or less may use other formats until 31 December 2027.
How many businesses are affected in Germany?
Destatis recorded nearly 7.3 million taxable businesses in 2022 and about 3.1 million businesses filing VAT advance returns in 2024.
Is B2C e-invoicing required in Germany?
No. The Commission's country page lists the business-to-consumer e-invoicing mandate as not applicable in Germany.
Does EDI have a different deadline?
Yes. Invoices sent by electronic data interchange can stay in a non-compliant electronic format until 31 December 2027 under section 27(38) of the VAT Act.
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