In November 2024, the Federal Central Tax Office in Germany began gradually issuing the new economic identification number (W-IdNr.). The aim is to provide each company with a unique identification number that facilitates allocation in the taxation and administration process. In addition, the number will serve as identification for digital administrative services in the future.
Verification of Payee (VoP) refers to a procedure for verifying the payee that was introduced as part of EU Regulation 2024/886 on real-time transfers. From 9 October 2025, banks and payment service providers will be obliged to compare the recipient name provided by the payer with the corresponding IBAN.
According to a study by the European Commission from 2022, the gender pay gap in the European Union is 13%. The “EU Directive 2023/970 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms” essentially contains transparency and design tools to further enforce the requirement of gender-neutral pay.
With the draft law of 4 June 2025, the German Government plans to create targeted investment incentives and thus new growth through a rapid boost to growth-promoting investments combined with long-term relief measures that will give the economy long-term planning security.
From 1 January 2025, the conditions for small business status under VAT law in Germany will change. In addition, there will also be a cross-border small business taxation (EU-KU regulation) within the European Union for the first time.
Shortly before the end of the year, the Federal Ministry of Finance (BMF) published the revised ‘Administrative Principles for Transfer Pricing – Principles for the Adjustment of Income in Accordance with Section 1 of the German Foreign Tax Relations Act (AStG)’.
The German Annual Tax Act 2024 (JStG 2024) was published in the German Federal Law Gazette on 5 December 2024.
November 2024
The Fourth Bureaucracy Relief Act (Bürokratieentlastungsgesetz – BEG IV) was passed by the Bundestag on 26 September 2024.
The new EU Corporate Sustainability Reporting Directive requires companies to report in detail on how they deal with social and environmental challenges in their annual financial statements in future.
The revised Directive (EU) 2022/2464 has been in force since the beginning of 2023 and must be transposed into national law by the EU member states by mid-2024. The new version is intended to give sustainability information the same status as a company’s financial information.
Electronic invoices will be mandatory in the B2B sector in future. Corresponding VAT regulations are contained in the Growth Opportunities Act, which was published in the Federal Law Gazette on 27 March 2024.
With an e-invoice, invoice information is transmitted electronically, received automatically and processed further. This enables end-to-end digital processing from the creation of the invoice to the payment of the invoice amounts.