The German Federal Council has approved the controversial Growth Opportunities Act of the german federal government, paving the way for the introduction of mandatory electronic invoicing. According to the provisions contained in the legislative package, from 2025, all companies in domestic business transactions in Germany are required to accept e-invoices in the Factur-X/ZUGFeRD format. From 2027, the obligation for companies to issue invoices in this format will be introduced gradually. By 2028 at the latest, even small companies must issue their business invoices in electronic form only.
The Aloaha ZUGFeRD SDK significantly expands the capabilities of e-invoicing by not only enabling the creation of invoices in the Factur-X/ZUGFeRD format but also supporting the conversion of CSVs and other formats into Factur-X/ZUGFeRD. Additionally, the SDK can read incoming invoices, significantly simplifying the processing and integration into existing systems.
Another component of the Growth Opportunities Act is an amendment to the VAT Act: From 2026, paper invoices in domestic business transactions between companies will no longer be allowed, and PDFs only if they include the Factur-X/ZUGFeRD format. Exceptions apply to small amount invoices up to 250 euros and tickets. Invoices between companies and consumers are not affected and can continue to be issued on paper or as PDFs. The purpose of this regulation is to combat VAT fraud. Following Italy, Hungary, and the ongoing introduction in France, the EU also plans a “VAT reporting system” where copies of each invoice must be submitted within a few days after dispatch. The planned domestic German system is intended to be compatible with the European system. According to the traffic light coalition’s statements, the expected increase in revenue from the elimination of VAT fraud is estimated to be between 11 billion and 14 billion euros annually. Nationwide, about 1.2 billion invoices are affected annually.