E-billing obligation also applies to associations

From next year, associations must also be able to receive e-invoices and, in a few years at the latest, issue e-invoices themselves if they provide services or sell goods to companies.

From January 1, 2025, companies in Germany must issue electronic invoices (e-invoices) when they sell goods or provide services to other companies. This new rule also applies to non-profit associations if they provide services or sell products to other companies. Even if an association has opted for the small business regulation for VAT, the obligation to issue e-invoices applies. This means that e-invoices must be created in all areas (also known as spheres) of an association in which goods or services are sold; this can therefore affect the spheres of special-purpose operations, asset management or taxable commercial operations.

Of course, the transitional period until the end of 2026, or until the end of 2027 if the previous year's turnover was less than 800,000 euros, also applies to clubs. Nevertheless, it is worth making early preparations for the new obligation. This is because associations must be able to receive e-invoices from 2025 (possibly as an attachment to an email), which can be assigned to the spheres of special-purpose operations, asset management and taxable business operations. There is no transitional period for the receipt of e-invoices.