Germany Secures EU Approval for Digital VAT Invoicing Until 2026
Germany has received special permission from the European Council to adjust its VAT invoicing rules. The move allows the country to accept digital VAT invoices from businesses operating within its borders. This temporary measure aims to modernise tax processes and combat fraud. The European Council approved Germany's request to deviate from the EU VAT Directive 2006/112/EC. Under the new rules, German tax authorities can recognise electronically issued VAT invoices from domestic businesses. However, recipients in Germany are not obliged to accept these digital invoices.
The exemption takes effect on January 1, 2024, and will remain in place until December 31, 2026. It may also end earlier if all EU member states adopt the planned digital invoicing amendments. Germany retains the option to request an extension if needed. The decision supports Germany's push for mandatory e-invoicing to tackle tax avoidance and streamline administration. Meanwhile, other EU countries must implement the updated directive by December 31, 2027, with mandatory compliance starting January 1, 2028—assuming the directive is formally adopted. This follows the EU's standard two-year transition period after publication in the Official Journal.
Germany's temporary VAT exemption allows digital invoicing for domestic transactions. The measure will run until at least 2026, unless broader EU reforms take effect sooner. The country can also extend the period if required, while other member states prepare for their own digital invoicing deadlines.
