Germany VAT invoicing rules simplified

Along with European Union simplification of invoice requirements for VAT, Germany has now approved new rules on the use of electronic invoices. The rules on German VAT compliance can be reviewed by clicking here.

From 2012, companies may use electronic only invoices if both sides of the transaction are agreed. The Tax Simplification Act has also eliminated the need for electronic certification, and the obligation for a signature is no longer required. Last year, there was a German tax ruling that invoices still had to be physically signed to ensure they would be considered for input VAT deductability. This change in legislation seems to now overturn this requirement.