Germany Plans Voluntary Pilot of VAT Reporting System in Early 2029

Germany’s Federal Ministry of Finance plans to begin a voluntary pilot of its digital VAT reporting system in early 2029, ahead of a planned launch on 1 July 2030.

Michael Schrodi, Parliamentary State Secretary at the ministry, outlined the timetable at an event hosted by the German Electronic Invoice Association (VeR) in Berlin on 22 September. According to VeR, he described the move from conventional accounting to structured e-invoices and then to the electronic reporting of selected invoice data to the tax authorities as a staged process.

The pilot date gives businesses a clearer indication of when they may be able to test the reporting system. It remains a ministry plan, rather than a deadline set in legislation. The Federal Ministry of Finance has said that the legal changes required for the reporting system will be proposed at a later stage. Its technical design and reporting requirements have yet to be finalised.

The timetable builds on Germany’s existing domestic B2B e-invoicing rollout. From 1 January 2027, businesses with prior-year turnover above €800,000 will generally have to issue structured e-invoices for transactions covered by the mandate. Businesses at or below that threshold can continue to use the extended transition period until the end of 2027.

VeR said the ministry sees a role for IT service providers and e-invoicing platforms in both invoice exchange and the later transmission of invoice data. For businesses preparing for the 2027 deadline, the reported pilot timetable makes clear that e-invoicing is one stage in Germany’s wider plan for transaction-based VAT reporting.

Source: German Electronic Invoice Association (VeR)

This content is intended to share insights and practical considerations based on industry experience. It does not constitute legal, regulatory, or financial advice. Regulatory requirements vary by jurisdiction and circumstance, so any compliance-related matters should be reviewed and validated with your own professional advisors.