Legal status: October 2026
From January 1, 2027, companies with more than 800,000 euros in sales in the previous year will have to issue e-invoices, and from 2028 all companies will be affected. The e-invoicing obligation does not only apply to classic customer invoices. Taxable commercial rent and the sale of plants or other business assets also require e-invoicing in B2B transactions. These cases often run outside of regular invoicing. Thilo Kiefer, Managing Director of munich enterprise software GmbH, talks to lawyer Jochen Ahlt about where the blind spots lie and what companies should now contractually regulate.
Table of Contents
Deadlines for the e-invoicing obligation in the B2B sector
| From | Duty |
|---|---|
| January 1st, 2025 | All companies must be able to receive e-invoices. |
| January 1st, 2027 | Companies with more than 800,000 euros in sales in the previous year must issue e-invoices. |
| January 1st, 2028 | All companies must issue e-invoices. |
The legal basis is sec. 14 of the German VAT Act in the version of the Growth Opportunities Act. The tax authorities have specified the application in two letters: BMF letter of 15 October 2025 and the previous letter of 15 October 2024 (summary at Haufe).
The interview
Mr. Ahlt, many companies are currently preparing for e-invoicing. Most of them are classic customer invoices. Is that enough?
Unfortunately not. The obligation does not depend on the type of invoice, but on the taxable turnover between companies. In many companies, settlements run on the side: the rent for a rented commercial hall, the sale of a used machine or vehicle, the passing on of costs to a business partner. Often no one thought about these processes during the changeover.
Let’s start with commercial rent. What will change for landlords?
The rental of land is generally exempt from VAT. However, many landlords waive the tax exemption for commercial tenants so that they can deduct the input VAT themselves. Anyone who opts in this way is providing a taxable service and will have to issue an e-invoice in the future. Until now, the rental agreement often served as the invoice. In the future, it will be sufficient to issue an e-invoice for the first rental period that clearly shows that it is a standing invoice.
And existing leases?
Standing invoices issued before 1 January 2027 are grandfathered as long as the invoice details do not change. This is exactly where the trap lies. In the case of an indexed or graduated rent, the amount changes regularly. Each adjustment then requires a new e-invoice. This applies to many commercial leases that I see in practice.
Many landlords have both commercial and private tenants. What applies then?
The e-invoicing obligation only applies between companies. Anyone who rents out an apartment to a private individual does not have to issue an e-invoice. This rental is exempt from VAT anyway, and an option is not possible here. The situation is different with the shop space on the ground floor, which is rented to a retailer: If the landlord has opted for VAT there, he needs the e-invoice. In mixed-use properties, two billing methods run side by side.
How does the landlord know which way applies?
The tenant and his turnover. The landlord may only opt if the commercial tenant himself is entitled to deduct input tax. A doctor’s practice, for example, mainly achieves tax-free sales. There, the option is usually ruled out, and so is the e-invoicing obligation. I recommend that you record this neatly in every commercial lease.
Should companies therefore adjust their leases?
For new contracts, I would explicitly regulate invoicing: Who issues the e-invoice, in what format, how is it transmitted, and how is the adjustment made if the indexed rent changes. In the case of existing contracts, it is worth taking a look at whether the VAT option is properly documented. A contract amendment is usually not necessary, but the billing must be correct.
What other processes do companies often overlook?
The sale of fixed assets, such as machines, vehicles or furnishings, to another company. This rarely happens and is therefore often settled manually in accounting, not via the normal invoicing system. The situation is similar when costs are passed on to business partners.
Without a mandatory e-invoice, the recipient risks his input VAT deduction from 2027. Does a customer still have to pay if the invoice does not come as an e-invoice, even though it should?
If the invoice is not in order, i.e. if it does not comply with the requirements of sec. 14 of the German VAT Act, the invoice recipient has a right of retention. If he asserts this, he may not be in default with the payment of the invoice amount.
What advice do you have for a company that wants to be safe now?
Firstly, an inventory of all transactions in which the company invoices other entrepreneurs, not only in the invoicing. Secondly, check the contracts, especially commercial leases. Thirdly, bring lawyers, tax consultants and IT to the table. The legal classification, the tax assessment and the technical implementation belong together.
The most important things from the conversation with Jochen Ahlt
- Anyone who deals with e-invoicing usually thinks of the customer invoice. Invoices outside the standard process often go unnoticed.
- Anyone who rents out commercial premises such as offices, shops or halls subject to VAT will have to issue e-invoices in the future. The rental agreement alone is then no longer sufficient as an invoice.
- Each index adjustment of the rent changes the invoice details and requires a new e-invoice.
- The obligation only applies between companies. The rent to private individuals is not affected.
- An invoice that does not comply with the form can delay payment and make it more difficult to collect the debt.
About Jochen Ahlt
Jochen Ahlt from Augsburg has been admitted to the bar since 2001. His focus is on commercial tenancy law, commercial and sales law, debt collection, accident settlement and insolvency avoidance. He represents clients in court in Augsburg and nationwide.
In commercial tenancy law, he assists landlords and tenants in drafting contracts, indexed rents and the premature termination of tenancies. In debt collection, he takes on dunning and enforcement proceedings, including the European dunning procedure.
Important Notice and Disclaimer
The views, answers and information expressed in this interview are for the general information and education of readers only. They do not constitute legal advice or tax advice and cannot replace individual advice from a qualified lawyer or tax advisor in individual cases.
Reading this article or using the information contained therein does not create an attorney-client relationship or other contractual relationship between the reader, the editorial team or our company or the interviewed expert.
Although the content has been researched and prepared with the greatest care, we and the interviewed expert do not assume any liability for the accuracy, completeness or up-to-dateness of the information. The legal and tax situation may change at any time due to legislation or case law. This interview reflects the legal status as of 12.10.2026.
For specific legal or tax concerns, please contact an appropriate specialist law firm directly, which can examine your individual situation. Liability for damages arising from the use or non-use of the information provided here is excluded to the extent permitted by law.
E-invoicing beyond invoicing: How we support you
Addition by munich enterprise, not part of the interview.
In SAP, the cases mentioned above usually do not run via SD invoicing. Commercial rents are often settled in RE-FX or as a debtor invoice in financial accounting, while asset sales are billed in asset accounting. This is precisely where e-invoice issuance is often missing.
Since 2005, munich enterprise software GmbH has been developing SAP solutions for document output and e-invoicing with ZUGFeRD, XRechnung, Factur-X and Peppol. We will work with you to check which invoices in your SAP system are affected and connect them to the e-invoice before the issuance obligation takes effect in 2027.
