BMF letter confirmed: E-invoicing will apply to all companies and NPOs from 01.01.2025!

The introduction of electronic invoicing (e-invoicing) was made binding with the new BMF letter dated 14.10.2024. All organizations and companies are obliged to be able to receive e-invoices from January 2025. This letter contains significant changes and clarifications regarding e-invoicing that are particularly relevant for non-profit organizations and associations:

Obligation to receive e-invoices:

From 01.01.2025, all domestic companies, including non-profit organizations and associations, must be able to receive e-invoices. This is a decisive step towards the digitalization and simplification of administrative processes and also has far-reaching consequences for NPOs.

Legal entities that do not carry out business activities can receive an e-invoice from the supplier, provided they have previously agreed to receive it.

Important transitional regulations and exceptions

• No transitional regulation for invoice receipt: All organizations must be able to receive e-invoices from 01.01.2025.

• Extended use of paper documents: Paper documents or other electronic formats may continue to be used until the end of 2026.

• Exceptions: Special regulations apply for small-value invoices under EUR 250 and for certain tax-free services in accordance with Section 4 No. 8-29 UStG.

• Extended transition period for small organizations: Small organizations with a previous year’s turnover of up to EUR 800,000 may use alternative invoice formats such as PDFs until the end of 2027.

Consequences of non-compliance

Correct use of the e-invoice is crucial, as input tax deduction is at risk if the wrong invoice format is used (paper instead of electronic). However, there are options for correction and goodwill arrangements.

E-invoices must also be kept in their original digital form, as simply filing them in paper form is not sufficient.

Steps for preparation

1. Check whether you are affected: Check how and to what extent your organization is affected by the e-invoicing obligation.

2. Technical preparation: Ensure that your systems can receive and process e-invoices.

3. Training courses: Prepare your employees for handling e-invoices and familiarize them with the new processes.

4. Adapting the software: Choose suitable software solutions that support the e-invoicing processes.

5. Transition periods: Take into account the applicable transition periods, especially if your organization falls under the small business regulation.

Use the remaining time until January 2025 to prepare for e-invoicing and ensure that your organization meets the legal requirements. If you have any questions or need support, we will be happy to assist you.