The post highlights that the German BMF letter dated 15 Oct 2025 requires e‑invoices to be fully and correctly validated for VAT recognition. It points out common validator shortcomings—such as incomplete EN 16931 checks, superficial VAT checks, and lack of audit‑proof documentation—and warns that many validators only verify the existence of data fields, allowing invoices with missing content to be accepted.
It requires that e‑invoices be fully and correctly validated before they can be recognized for VAT purposes.
They often lack complete EN 16931 checks, perform only superficial VAT checks, and do not provide audit‑proof documentation.
Because they only check for the existence of data fields, not the actual content, allowing invoices with empty mandatory fields to be considered valid.
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NWB · 14 days ago
This guidance explains that German businesses can apply to extend the deadline for filing VAT returns by one month. If the extension is used, a special advance payment equal to one‑eleventh of the previous year’s advance payments must be paid, and it is credited in the December advance payment calculation. The special payment can be corrected upon application if expected VAT changes due to a rate change.
Bloomberg Tax · 23 days ago
The German Ministry of Finance clarified rules on input VAT deductions for subsidized service providers that operate at persistent loss. The BMF Letter states that such providers cannot deduct input VAT for services unrelated to taxable activity and must satisfy a two‑step test linking remuneration to performance and confirming economic activity. The letter also amends the VAT Application Decree.
LinkedIn Article by Axalv Truiq Labs · 28 days ago
The German e-invoicing market is projected to grow from USD 15.2 billion in 2024 to USD 41.86 billion by 2033, driven by EU Directive 2014/55/EU and a 13.5% CAGR. Cloud-based solutions dominate the market, holding over 70% share, while large corporations represent about 60% of the market and SMEs are rapidly expanding. The analysis highlights regulatory mandates, market segmentation, and strategic opportunities for technology providers.
Stripes · about 1 month ago
Germany has permanently lowered the VAT rate on food served in restaurants, cafes and fast‑food outlets from 19% to 7% effective 1 January 2026, while drinks remain taxed at 19%. Receipts will now show separate VAT lines for food and beverages.
KMLZ · about 1 month ago
Germany introduces Section 21b to the VAT Act from 1 January 2026, addressing import VAT treatment when customs declarations are filed in one EU Member State but goods are cleared in another. The new rules clarify that import VAT liability arises domestically when goods are presented domestically, with specific provisions for AEO C holders using centralised clearance.
KMLZ · about 1 month ago
The German Federal Fiscal Court ruled in July 2025 that input VAT on renovation costs for a historic castle is deductible when the property is intended for taxable rental activities, regardless of whether the renovation was financed through grants or donations. The ruling confirms that profitability is not required for taxable person status.
