Regulatory updates - Germany

On September 17, 2025, following consultation with federal states' tax authorities, the Federal Ministry of Finance (BMF) published a letter addressing the use of foreign languages for certain invoice information. The guidance clarifies that specific mandatory invoice details required under the German VAT Act (Umsatzsteuergesetz, UStG) can be provided in official EU languages instead of German. 

The BMF has updated the VAT Application Decree (Umsatzsteuer-Anwendungserlass, UStAE) to include a new Annex 8. This update explicitly permits the use of specific foreign language terms on invoices, such as "Self-billing" and "Reverse charge," with appropriate cross-references to the new annex. The guidance also expands examples for margin schemes applicable to travel agents and second-hand goods, among others. 

The newly introduced Annex provides a comprehensive multilingual table listing accepted terms in various official EU languages. For businesses, this clarification confirms that German invoices can include standardized foreign-language expressions from official EU languages for certain required VAT annotations without compromising compliance. 

This BMF letter applies to all open cases and repeals the BMF letter dated October 25, 2013. 

On September 1, 2025, Germany's Federal Ministry of Finance (BMF) published a letter amending the Application Decree to the Tax Code (Anwendungserlass zur Abgabenordnung, AEAO). The update modifies AEAO references to incorporate the latest guidance on "Principles for the proper management and storage of books, records and documents in electronic form as well as for data access" (GoBD) from July 14, 2025. 

Key updates include: 

• Revised references across several AEAO sections on bookkeeping and storage requirements for electronic recording systems with cash register functionality. These sections now include the BMF letter dated July 14, 2025 (BStBl I p. 1502);

• Modification of one section to direct readers to existing AEAO provisions outlining procedures for handling certified Technical Security Device (TSE) failures in electronic recording systems.

The letter does not introduce new technical requirements. The detailed operational requirements remain in the AEAO as amended. 

The changes are effective immediately. 

On July 28, 2025, a comprehensive e-invoicing guideline bridging the German VAT Act (Umsatzsteuergesetz, UStG) requirements with the European e-invoicing standard EN 16931 was announced by XStandards for Purchasing’s (XStandards Einkauf).  

The mapping document represents a collaborative effort from several prominent German organizations in the e-invoicing and digitization sector: 

• XStandards for Purchasing (XStandards Einkauf), the government-led framework for standardization and digitization in public procurement, including XRechnung, managed by the Coordination Office for IT Standards (Koordinierungsstelle für IT-Standards, KoSIT). 

• The German e-invoice forum (Forum elektronische Rechnung Deutschland, FeRD), which publishes the ZuGFeRD specifications. 

• The German Association for Economic Administration (Arbeitsgemeinschaft für wirtschaftliche Verwaltung e.V., AWV), which promotes business growth by developing business-friendly administrative solutions and framework conditions while enhancing public sector effectiveness. 

The guideline details a systematic table mapping the mandatory VAT Act requirements to their corresponding EN 16931 elements. For each requirement, the table specifies: 

• The mandatory invoice content required by law; 

• The specific legal reference in the German VAT Act; and 

• The EN 16931 mapping, including relevant business groups (BG) and business terms (BT). 

This detailed resource will help businesses, software vendors, and service providers ensure their e-invoicing systems correctly implement all legally required VAT information in the appropriate EN 16931 data fields. 

The guideline is available on the XStandards Einkauf’s website and will be updated regularly to reflect any changes in requirements.