New E-Invoicing Obligation from January 1, 2025 for Lawyers
Apr. 23, 2025 · 5 min read
FromJanuary 1, 2025, lawyers must also comply with thee-invoicing obligation in the B2B sector. This new regulation requires technical adjustments in all law firms to meet the legal requirements.
Recently, the legal profession was relieved by the abolition of the written form requirement for attorney invoices under § 10 RVG. However, the introduction of e-invoicing pursuant to § 14 UStG is now imminent. This affects all lawyers, but with different implementation deadlines and implications depending on the case.
New regulations for issuing electronic invoices in the B2B sector
TheGrowth Opportunities Act, published in the Federal Law Gazette 2024 I No. 108 of March 27, 2024, introduces a significant change in the area of invoicing. From January 1, 2025, theobligation to issue electronic invoices pursuant to § 14 UStG will also be extended to business transactions in the B2B sector. This regulation, which previously only applied to public contracting authorities, is part of efforts to simplify and modernize tax administration.
A crucial innovation is that in future a distinction will be made between electronic and other invoices.Electronic invoices must be issued, transmitted and received in astructured electronic format, which enables automated processing. In contrast, other invoices inother electronic formats or onpaper, includingPDF documents, are classified asother invoices. However, the latter do not meet the strict requirements for an electronic invoice and are therefore subject to further regulations.
This legislative change aims to improveefficiencyandtraceabilityin invoice processing by encouraging companies in the B2B sector to use modern electronic formats. For companies, this means timely adaptation of their invoicing processes to comply with legal requirements and avoid potential sanctions.
What does this mean for me and when?
From January 1, 2025, new regulations for issuing and receiving electronic invoices will come into force that affect lawyers. There are two essential aspects to consider: receiving and issuing electronic invoices.
1. Receiving E-Invoices
From the specified date, lawyers areobligated to receive electronic invoices. This regulation applies regardless of the client structure or the company's turnover. Unlike before, there isno transition period, so from the first day of 2025 all lawyers must be technically capable of receiving e-invoices. From this point on, companies may send electronic invoices without prior consent from the recipient.
From a technical perspective, it is essential to provide anemail inbox to receive e-invoices. Most lawyers already have such email accounts. A dedicated inbox for invoices is not strictly required, but can offer advantages, particularly for more efficient processing of these invoices. Alternatively, other permissible transmission methods can be agreed upon.
The definition of invoice readability is changing: An invoice will be considered readable in the future if it ismachine-readable, not just visually readable by humans. This requires that the structured data set, for example in the form of an XML file, issuitable for automatic processing systems. Some of the approved invoice formats that meet these requirements are XRechnung and the ZUGFeRD format (from version 2.0.1 onwards). The ZUGFeRD format offers a hybrid solution consisting of a structured data component (XML) and a human-readable part (e.g., PDF), combined in a single file.
It is recommended to prepare for these changes in good time to ensure that your own systems are compatible. In particular, you should verify whether your existing office software is suitable for visualizing pure XML files or whether additional tools are required to meet these requirements.
These preparations are crucial to comply with legal requirements and to continue business operations smoothly.
2. Issuing E-Invoices
The obligation to issue e-invoices initially applies exclusively to the domestic B2B sector, meaning it only applies to business relationships between companies. For consumers, invoices will continue to exist in conventional form, for example as paper invoices or as PDF documents. There are also transitional periods, so there is sufficient time to thoroughly examine the requirements and tailored solutions. Furthermore, the obligation will (presumably) not apply to everyone.
In the first transitional phase until the end of 2026, all businesses may transmit invoices for revenues from the years 2025 and 2026 either on paper or (provided the recipient consents) in an electronic format that does not comply with the new standards (for example, simple PDF files).
From January 1, 2027, this exception will only apply to businesses whose total revenue in the previous calendar year does not exceed 800,000 euros. All businesses with higher revenue will be required from this date to issue e-invoices in accordance with the new requirements.
From January 1, 2028, all businesses must finally issue electronic invoices without restriction in accordance with § 14 para. 1 sentence 3 UStG n.F.
For small business owners, however, nothing changes: They will (presumably) remain exempt from the obligation to issue e-invoices. The Annual Tax Act 2024 (passed by the Bundestag on October 18, 2024 in third reading, expected in the Bundesrat on November 22, 2024) provides for a corresponding exception pursuant to the newly introduced § 34a UStDV, so that invoices may still be transmitted as conventional invoices, notwithstanding § 14 para. 2 sentence 2 UStG.
Amendments to § 10 RVG regarding electronic invoices
With the abolition of the written form requirement, a possible form collision has been eliminated; text form is sufficient. A handwritten signature is therefore no longer required. The mandatory information pursuant to § 10 para. 2 RVG should also not pose an obstacle, as electronic invoices allow for supplementary information in addition to pure VAT-relevant data.
Conclusion:
The electronic invoice does not require a specific format. Attorneys should therefore be prepared for the fact thatvarious permissible formatscan be received at the law firm. Practice management software providers are expected to offer corresponding updates, which is already the case with many common providers. Accounting programs are also likely to provide corresponding functions.
In addition, some companies offer specialized solutions for creating and receiving electronic invoices. Particular attention must be paid to attorney-client confidentiality and compliance with § 43e BRAO and § 2 BORA.
The obligation to use e-invoicing and the associateddigitalization of workflowsalso offer opportunities. Particularly in times of skilled labor shortages, valuable resources can be freed up. Electronic invoices not only save paper and postage, but also enable automated processing, greater flexibility, accelerated payment processes, and reduce error susceptibility compared to manual data processing and transfer, leading to a reduction in personnel costs.
Further developments in this area should therefore be closely monitored.
Contact us now
If you have further questions about switching to electronic invoices or need our support, do not hesitate to contact us. Our team is happy to discuss your individual requirements and develop customized solutions. Take advantage of our many years of experience and expertise in legal consulting and digital transformation.
