Keywords: electronic invoicing, e-invoicing, VAT, 2011 Tax Simplification Act, German parliament

Simplification of electronic invoicing in Germany

News | 10 October 2011

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The German parliament approved the 2011 Tax Simplification Act on 23 September 2011 which primary objective is to reduce bureaucracy. The major change on the electronic invoicing field is that for VAT purposes, invoices may either be transmitted in paper form or, subject to the recipient's consent, electronically.

This Act significantly reduces the requirements for electronic invoicing. Requirements to use specified technical procedures for ensuring authenticity of origin and integrity of content have been dropped for electronic invoices. As a result, businesses will be free to establish internal (control) procedures for purposes of ensuring authenticity of origin, integrity of content and readability for both paper and electronic invoices. As a result, an electronic invoice transmitted via e-mail will, in the future, entitle a business to deduct input tax without requiring a signature.

Read the full article at:

http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/taxnewsflash/Documents/germany-oct7.pdf