In order to combat tax fraud and boost market competitiveness in Europe, Germany continues discussions regarding Continuous Transaction Controls (CTC) systems for e-invoicing. CTC is a type of transaction-based reporting or clearance that is based either on the actual invoice or on a subset of the invoice.

Law enforcement agencies, such as tax administrations, can collect data associated with business activities through CTCs. A business data management system provides this data in real-time or near-real-time.

Effective August 9, 2021, Germany approves the use of QR codes in order to shorten receipts. The information on the receipt can have a readable QR code that corresponds to the digital interface of the financial administration.

Germany recently amended the VAT Application Decree (UStAE) to clarify that a duplicate of the outgoing small value invoice (till receipt) can be reproduced from unalterable digital records when issuing invoices through electronic or computerized point of sale systems.

To achieve this simplification, it is necessary, among other things, to adhere to the "Principles for the Proper Management and Storage of Books, Records and Documents in Electronic Form as well as Data Access" ("GoBD").

For all transactions over EUR 1,000, suppliers in Sarre, Baden Wurttemberg, and Hamburg must issue e-invoices starting on January 1, 2022.

The new German government coalition indicated that one of its main goals is to combat tax fraud. To create, verify, and send invoices, the government proposed a new national VAT declaration system.

Government plans to modernize the tax system and improve communications between public administrations and businesses.

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