Germany is entering the final months of 2026 with an intensive agenda of tax changes that will have a direct impact on companies and taxpayers starting in 2027. 

In August alone, the Federal Ministry of Finance presented new reform proposals. The Government approved the Jahressteuergesetz 2026, a broad package of tax amendments aimed at: 

• modernizing tax administration; 

• increasing legal certainty; 

• adapting the German tax system to new economic and international challenges. 

In addition, on August 18, 2026, the Ministry of Finance published the draft Einkommensteuerreformgesetz 2027, further reinforcing the Government's focus on reforming the tax system ahead of the next fiscal Year. 

Tax notifications will go digital 

One of the changes with the most immediate impact will take effect on January 1, 2027. From that date, certain administrative acts and tax assessments will generally be delivered electronically when the taxpayer has an active account with ELSTER, the German tax administration's digital platform. 

Until now, electronic delivery often required prior acceptance. Under the new system, however, digital administration will become the default option for taxpayers with an active account. 

For companies, this change makes it necessary to review internal processes for receiving, monitoring, and archiving tax communications and to ensure that responsibilities are clearly assigned. 

Interest rates on certain tax liabilities will increase 

Another planned change for 2027 concerns the interest rate applicable to certain tax payments and refunds. The draft Jahressteuergesetz 2026 proposes increasing the current rate from 1.8% per year to 3.6% per year, equivalent to 0.3% for each full month. 

The measure responds to changes in interest rates and could increase the cost of certain tax adjustments or payments made outside the applicable period. 

For companies, effective management of tax calendars and contingencies will therefore become even more important. 

Tax transformation in 2027 

On August 18, the Federal Ministry of Finance also published the draft Einkommensteuerreformgesetz 2027. Germany aims to adapt its tax policy to the country's economic, technological, and demographic changes. 

The Government expressly identifies the need to strengthen the economy's growth potential and support, through tax reforms, changes affecting the labor market and business competitiveness. 

The combination of new legislation and draft proposals makes the coming months a particularly relevant period for tax planning for companies with a presence in Germany. 

Electronic invoicing enters a decisive phase 

This timeline also includes the gradual implementation of B2B electronic invoicing. Until December 31, 2026, companies may continue using certain paper invoices or alternative electronic formats under the transitional regime. 

Starting in 2027, this flexibility will begin to decrease. Companies with annual revenue exceeding €800,000 will no longer benefit from the general transitional regime. Companies below this threshold will, under certain conditions, have an additional year, until the end of 2027. 

For this reason, the final months of 2026 will be particularly important for reviewing invoicing systems, ERP platforms, and accounts payable and accounts receivable processes. 

What does this mean for international companies? 

The changes planned for 2027 make it advisable for companies with a presence in Germany to review their tax and technology procedures over the coming months. 

Key areas to consider include: 

• ensuring the proper monitoring of electronic notifications received through ELSTER; 

• adapting internal procedures to the new digital environment; 

• assessing the impact of higher tax interest rates; 

• preparing systems for the next stages of mandatory electronic invoicing; 

• monitoring the progress of the Einkommensteuerreformgesetz 2027 and Jahressteuergesetz 2026 throughout the legislative process. 

Auxadi can support companies in identifying the obligations applicable to them, reviewing their compliance procedures, and adapting their internal processes to an increasingly digitalized tax environment. 

Taking action during the final months of 2026 will allow organizations to enter 2027 with their processes prepared, reducing operational risks and ensuring more efficient management of their tax obligations. 

If you are looking to expand your multinational group into Germany, consult Auxadi's local experts to understand your needs and ensure a successful expansion into the German market.

About Auxadi

With 26 subsidiaries across Europe, the United States, and Latin America, Auxadi is today the leading Spanish accounting firm serving multinational companies and real estate investment funds. Through its technology-driven approach and strong client-focused culture, Auxadi acts as an extension of its clients' finance departments worldwide, providing accounting, tax, payroll, transfer pricing, and corporate legal services.

Its proprietary MySPV technology platform, more than 300 employees, and over 1,700 clients have positioned Auxadi as a benchmark in the tech-enabled services sector, not only in Spain but internationally.

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.