German e-invoicing liberalisation vetoed

On July 8th 2011 the Bundesrat, the German upper house of parliament, denied approval of the changes adopted of the federal tax regulations already approved by the Bundestag (the lower house of Parliament) and the federal government. This decision directly impacts the modified legislation E-Invoicing.

What’s the fuzz all about?
The original plan was that as from July 1st 2011 electronic invoices without signatures and EDI procedures fiscally compliant. However, because the Bundesrat did not consent to the law, it is pretty safe to say that the new rules on electronic invoicing in Germany will only come into force with a law consented by the Bundesrat. Even when a change of the existing scheme is expected by the end of 2012 due to the new EU Directive.

Implications
What does this mean for German organisations, German adoption rates and EU adoption tactics?
- German organisations must apply EDI and/or electronic signatures to be compliant
- German adoption growth-rate will remain lower than countries that have liberalised e-invoicing regulation
- As Germany is the Powerhouse of the EU, this situation will seriously affect EU e-invoicing adoption rates and tactics

Merkel to the rescue?
Perhaps Angela Merkel can speed up the process a bit. She is considered the most powerful women in the world for a reason, right?