From 2025, e-invoicing will become mandatory for many, but what does that mean for landlords? While private residential rentals generally remain exempt, commercial landlords must act if they have opted for VAT. This guide provides you with legally compliant guidance on deadlines, formats, and the necessary steps for your property management.
What the e-invoicing obligation means for rentals
An e-invoice is an invoice issued, transmitted, and received in a structured electronic format that enables electronic processing. Typical formats include, for example, XRechnung or ZUGFeRD (with a structured data component). A simple PDF document will no longer be considered an e-invoice for VAT purposes from 2025.
Landlords are also considered entrepreneurs under Section 2 UStG if they generate income sustainably from rents, so in principle the e-invoicing obligation also applies to landlords.
However, what is decisive is not the status as an entrepreneur alone, but whether there is an obligation to issue an invoice under Section 14 UStG. Only then does an e-invoicing obligation even come into consideration.
Private renting
In most cases: no, because the rental of residential space is VAT-exempt under Section 4 No. 12a UStG. At the same time, for services to private individuals there is generally no obligation to issue an invoice (Section 14(2) UStG).
This means that for rental to private tenants there is no obligation to issue an invoice and therefore no e-invoicing obligation either. The monthly rent is based on the lease agreement, not on an invoice in the VAT sense.
Commercial renting
For commercial renting, whether the e-invoicing obligation applies depends on the specific setup. The rental of commercial real estate is also generally VAT-exempt under Section 4 No. 12 UStG.
If you do not opt for VAT, the following applies:
- no VAT
- generally no obligation to issue an invoice.
- However, an exception applies if the recipient of the service expressly requests an invoice (Section 14(2) sentence 1 no. 2 UStG).
Only if an invoice must be issued in this case does an e-invoicing obligation even come into consideration.
Many landlords opt for VAT under Section 9 UStG in order to deduct input VAT. In this case, the following applies:
- you provide a taxable service
- your tenant is an entrepreneur
- there is an obligation to issue an invoice under Section 14(2) UStG
In this case, there is an e-invoicing obligation for domestic B2B transactions from rents.
Do I have to issue an e-invoice to commercial tenants
Yes, if all of the following points are met:
- your tenant is an entrepreneur
- the rental takes place domestically
- you have opted for VAT (Section 9 UStG)
- no transitional rule applies anymore
Then, after the transitional periods expire, you must issue invoices as e-invoices.
Which transitional periods apply to landlords?
The transitional rules under the Wachstumschancengesetz apply equally to all entrepreneurs, and therefore also to landlords.
What transitional periods are there?
- Until 12/31/2026: Paper invoices and PDFs are permitted with the recipient’s consent.
- Until 12/31/2027: For businesses with prior-year turnover below EUR 800,000, the old rules remain in place.
- From 01/01/2028: The e-invoicing obligation applies without exception to all domestic B2B transactions.
Regardless of this, you must already be able to receive e-invoices starting on January 1, 2025. E-invoicing also offers many benefits for landlords, as accounting processes can be automated and made more efficient.
Do I have to be able to receive e-invoices as a landlord?
Do landlords have to be able to receive e-invoices? Yes—starting January 1, 2025, every landlord with entrepreneurial status is required to accept e-invoices from service providers (e.g., tradespeople or caretakers). A simple email inbox is sufficient for receiving them, but specialized software such as easybill is advisable for legally compliant archiving and readability.
For receipt alone, an electronic transmission channel is generally sufficient, for example an email inbox. However, the e-invoice itself must meet the statutory requirements of § 14 UStG and be provided in a structured electronic format (e.g., XRechnung or ZUGFeRD with a structured data component). A PDF alone will no longer meet these requirements from 2025 onward.
In this case, you need e-invoicing software to import incoming invoices and archive them in a legally compliant manner. This means that all invoice records must be stored securely and unalterably for eight years. Modern e-invoicing programs such as easybill handle this completely.
What about service charge statements?
Does the e-invoicing obligation apply to the service charge statement? For private residential rentals, no, because the statement is part of the lease relationship and not an invoice within the meaning of the German VAT Act. For commercial rentals with a VAT option, the statement based on the lease agreement is also usually exempt, provided no separate special services are billed.
If service charges or additional services are billed as part of the uniform rental service—for example as part of an annual operating cost statement based on the lease agreement—there is still no separate invoice. There is also no e-invoicing obligation here.
If, however, you invoice separately billable services that go beyond merely making the property available, an invoice under § 14 UStG may exist.
Typical examples are:
- separately commissioned cleaning services
- maintenance or service services outside the usual service charges
- individually agreed additional services
In these cases, these are independent other services for which, where there is a domestic B2B transaction, an invoicing obligation under § 14(2) UStG applies.
After the transitional periods expire, these services must be billed as an e-invoice.
Practical example: additional services in commercial rentals
You rent office space to a business. The service charges are billed regularly via the operating costs. No e-invoice is required for this.
If the tenant additionally commissions you to clean its office areas, this is an independent service that is not directly related to the lease agreement.
For this service, you must issue an invoice under § 14 UStG and, after the transitional periods expire, as an e-invoice.
What applies to mixed-use properties
If you rent to both private individuals and businesses, you must distinguish:
- Rental to private individuals: no e-invoice
- Rental to businesses with VAT: e-invoice possible or mandatory
In practice, this often means different billing formats for different tenants.
Does the e-invoicing obligation also apply to landlords as small businesses (Kleinunternehmer)?
Yes, in principle the obligation also applies to small businesses under § 19 UStG. Contrary to widespread belief, Kleinunternehmer status does not exempt you from the obligation to issue e-invoices in the B2B area. However, since small businesses often rent only to private individuals or do not opt for VAT, the obligation applies less often in practice, yet if you issue an invoice to a commercial tenant, it must be provided in e-format in the long term. The obligation to receive e-invoices also applies to small businesses without restriction starting January 1, 2025.
Can I switch completely to e-invoicing as a landlord?
No, a complete switch is not feasible in practice. The e-invoicing obligation under § 14 UStG applies only in business-to-business relationships. Private tenants are not entrepreneurs and therefore are not required to be able to receive or process e-invoices.
When renting out residential space, there is also typically no statutory obligation to issue invoices under Section 14 (2) UStG. In these cases, there is therefore no basis at all for an e-invoice.
The situation is different with commercial tenants. If you rent to businesses and opt for VAT under Section 9 UStG, you will in the future have to issue e-invoices where an invoicing obligation exists. It is therefore still important to prepare in good time for the e-invoicing obligation so that you can receive and process e-invoices and, in the future, also issue them. Landlords cannot avoid this either.
Do I need to amend my lease agreements?
Do existing lease agreements have to be amended? No, the agreements remain valid. However, since a lease agreement functions as a continuing invoice, commercial landlords must send their tenants a one-time “initial e-invoice.” This links the agreement to the new digital standard and thus secures the tenant’s input VAT deduction.
