Reporting under HGB
German entities prepare statutory financial statements under the Handelsgesetzbuch (HGB). International groups usually also need IFRS figures for consolidation, so many keep a mapping between HGB and IFRS in their ERP.
Audit thresholds
Corporations that are not small under section 267 HGB must be audited. Since 2024 a corporation is small if it does not exceed two of: €7.5 million balance sheet total, €15 million revenue and 50 employees, on two consecutive balance sheet dates.
VAT and e-invoicing
German VAT (Umsatzsteuer) has a standard rate of 19% and a reduced rate of 7% for certain goods and services. Germany is phasing in mandatory electronic invoicing between businesses using structured formats such as XRechnung and ZUGFeRD; confirm the receiving and issuing deadlines that apply to you with your tax adviser.
How we help
With managers in Germany and an offshore delivery team, we prepare HGB and IFRS accounts, configure ERPs such as SAP, Scopevisio and Weclapp, and keep your books ready for audit.
This article is general information, not accounting, tax or legal advice. Rates, thresholds and effective dates should be confirmed with the official sources (IFRS Foundation, tax authorities, regulators) or your adviser before acting.