Regulatory updates - Germany

On July 14, 2025, the Federal Ministry of Finance (BMF) published a second amendment to the Principles for the Proper Management and Storage of Books, Records, and Documents in Electronic Form, and for Data Access (Grundsätze zur ordnungsmäßigen Führung und Aufbewahrung von Büchern, Aufzeichnungen und Unterlagen in elektronischer Form sowie zum Datenzugriff, GoBD).

The update primarily reflects legal changes resulting from the introduction of mandatory e-invoicing among domestic businesses, effective January 1, 2025. Key changes include: 

Retention and formats 

• For e-invoices (per Section 14(1) UStG), archiving the structured data part, typically the XML file, is sufficient provided all GoBD requirements are met. Storing the PDF or other human-readable image is not required if it does not contain additional tax-relevant information. 

• Incoming electronic documents must be maintained in the format in which they were received (e.g., invoices as XML; bank statements as PDF or image files).  

• For documents received as structured datasets, such as e-invoices, content conformity is sufficient; visual conformity is not required. 

• Format conversion is permitted, but the original structured data must be preserved. If image information is enhanced (e.g., via OCR), the verified and corrected additional data must also be retained. The XML part of an e-invoice must remain intact and preserved. 

• When using an invoicing software, no separate graphic copy, e.g., a PDF or the PDF part of a hybrid invoice, must be stored at the time of creation, provided an identical copy of the outgoing invoice can be generated upon request at any time. 

Hybrid e-invoices  

• For hybrid formats, such as ZUGFeRD, the human-readable component (PDF) only needs to be archived if it contains any additional or different tax-relevant information not present in the structured data, such as accounting notes or qualified electronic signatures. 

Payment processing proofs 

• Technical proofs generated by payment processors (e.g., logs) generally do not have to be retained unless:
  • they are used as accounting documents;
  • they are the only settlement record with the payment processor; or 
  • they are the only way to clearly distinguish cash vs. non-cash transactions in the cash book.

Business letters 

• Incoming electronic commercial or business letters and accounting documents must be retained in the format in which they were received, for example, bank statements in PDF or image format. 

Audits and data access 

• The tax authority may require a machine evaluation of data subject to recording and retention requirements, or have it performed by an authorized third party. The taxpayer must provide the evaluation in a machine-readable format, e.g., export files that the tax office can process, or grant read-only access. Only evaluations using the capabilities available in the taxpayer’s or the commissioned third party’s IT system may be required. 

This GoBD version is effective from the day of publication, July 14, 2025. 

The BMF released this second draft letter following consultations with federal and state tax authorities. The document was shared with industry associations for feedback and made public due to its economic significance. Interested parties can submit comments through their associations. Key aspects of the draft letter include the following.

Compliance & Validation

• Formatting errors render e-invoices non-compliant, classifying them as "other invoices";
• Content errors invalidate e-invoices; all mandatory data must appear in the structured part of the e-invoice — merely referencing attachments is insufficient;
• Invoice corrections must match the original invoice format (e.g., a credit note correcting an e-invoice must also be issued as an e-invoice);
• Validation tools are recommended to verify European Norm (EN) 16931 compliance.

Exemptions and consent

• E-invoicing is not mandatory for small amount invoices (below 250 EUR), travel tickets, or from small businesses, though e-invoices may be issued without recipient consent in these cases;
• E-invoicing for transactions to private consumers (Business-to-Consumer or B2C) requires prior consent.

Archiving

• The structured part of an e-invoice must be archived in its original form for eight years, ensuring authenticity, integrity, and legibility via internal controls or electronic signatures/Electronic Data Interchange (EDI).

Amendments to VAT Implementation Decree

• Updated terminology and definitions, clarifying distinctions between e-invoices and "other invoices," structured formats, and EU standards;
• Numerous paragraphs amended to reflect mandatory e-invoicing requirements, including obligations for real estate services, credit notes, and invoice corrections;
• For hybrid invoices, the image part (PDF) and the structured part (XML data) should contain identical invoice information;
• Input tax deduction is permitted only for compliant invoices — for transactions subject to mandatory e-invoicing, this means an e-invoice that fully meets the requirements of the German VAT Act (Articles 14 and 14a UStG).

Special Provisions

• Guidelines for invoices in insolvency or joint ownership cases;
• Correction and replacement procedures for invoices, including notarial and banking services.

The changes outlined in this letter will apply to all transactions conducted on or after January 1, 2025. The final version of the BMF letter is expected in the fourth quarter of 2025.

The Federal Ministry of the Interior and Home Affairs (BMI) and the Federal Ministry of Finance (BMF) have decided to merge the two federal invoice receipt platforms, the Central Federal Invoice Receipt Platform (ZRE) and the Online Access Act-compliant Invoice Receipt Platform (OZG-RE), into the OZG-RE by 2025. This move aims to streamline invoicing across the federal administration, simplifying processes for B2G suppliers.

Transition period

Federal authorities using ZRE will transition to OZG-RE in two phases, with the first wave completed by June 20, 2025. A schedule detailing when authorities will begin receiving invoices via OZG-RE will soon be available on BMI’s website. Suppliers will be notified in advance by their federal buyers about the transition date and will receive all necessary invoicing details.

Actions required by suppliers

BMI confirms that all existing ZRE-registered Peppol routing IDs will be transferred to the OZG-RE platform, so no action is required by invoice issuers submitting e-invoices via the Peppol network.

Suppliers who submit invoices to ZRE through methods such as the web portal should register on the OZG-RE portal. The ZRE portal will be discontinued by December 31, 2025.