GoBD is the German tax administration’s guidance on keeping electronic books, records and documents and allowing access to the data. It applies to tax-relevant records even when a business uses cash-basis profit calculation (EÜR) or the German VAT exemption scheme for small businesses (Kleinunternehmerregelung). It does not require a particular product or a general official software certificate.
Key points
- Record transactions completely, accurately and in an orderly way; each entry needs a retrievable accounting document or receipt.
- Make corrections traceable so the original information remains identifiable; silent overwriting or deletion is unsuitable.
- Generally retain digitally received documents digitally in the format received. For an e-invoice, the structured data is crucial.
- Apply the retention period for the document type: commonly ten, eight or six years, generally starting at the end of the relevant calendar year.
Who must follow GoBD?
The rules concern tax-relevant books, records and documents regardless of company size. A small business still needs a reliable process for invoices, cash receipts, bank data and other relevant records. The exact scope depends on its activity and legal record-keeping duties. A tax adviser can review the process, but the business remains responsible.
Record and link documents promptly
Collect incoming and outgoing invoices, cash receipts and payment evidence in defined places. Link each document to its transaction. Cash transactions generally need daily recording. If bookkeeping is performed only periodically, non-cash transactions must generally first be entered in primary records within ten days, with safeguards against losing documents. This is not a blanket ten-day deadline for every posting. An orderly document filing system can support primary records in appropriate cases.
Record reversals and corrections with a reference to the original transaction. A freely editable folder without a change history is risky as the sole archive. Completeness, access controls, change logs and a clear link between document and entry matter.
Keep digital originals and e-invoices
Printing an invoice received by email and discarding its digital form is generally insufficient. Keep tax-relevant electronic documents in the format received unless a permitted conversion preserves the required information. For a German e-invoice under section 14 UStG, retaining its structured component, such as the XML file, is generally sufficient. If a readable component contains additional tax-relevant information, retain that as well. A PDF printout does not replace the structured data.
Paper documents may be scanned under a documented procedure. Check legibility and completeness and consider whether another rule still requires the paper original. A loose collection of photos is not a reliable general solution.
Retention periods
Section 147 AO generally requires books, inventories and annual financial statements to be retained for ten years. Accounting vouchers generally have an eight-year period; section 14b UStG also requires incoming and outgoing invoices to be kept for eight years. Business correspondence and other listed documents often have a six-year period. The period generally starts at the end of the calendar year in which the document arose, the last entry was made, or a letter was received or sent. Special rules or an ongoing tax or audit procedure can extend retention. Check before deleting.
Process documentation, backups and access
A process description should explain how documents arrive, are checked, recorded, corrected, stored, backed up and exported. Identify the applications, roles, access rights and changes to the process. The level of detail may reflect a small business, but it must explain what actually happens. Plan for backup restoration and a change of software. Using a cloud service or a tax firm does not transfer the business’s responsibility.
Records must remain readable and available throughout retention. During a tax audit, the authority may access relevant electronic data within the statutory rules. Before changing systems, check that documents, links and required data can be exported.
A practical six-step routine
- Define where paper documents, email attachments and e-invoices arrive.
- Record each transaction promptly and assign a document and unique reference.
- Keep electronic originals and structured invoice data in a protected archive.
- Log corrections instead of silently overwriting older entries.
- Regularly test search, readability, backup restoration and export.
- Write down the procedure and update it when the process changes.
Common questions
Do I need certified GoBD software?
No general official GoBD certification for software exists. What matters is whether the actual process meets the requirements and can be checked.
Is a PDF or printout of an e-invoice enough?
No, if that loses the structured component. Retain the relevant original data and any additional tax-relevant information in the readable component.
Does GoBD apply to EÜR or the small-business VAT scheme?
Yes, insofar as tax-relevant records and documents must be kept. The type and scope of the duties may differ.
What if records have defects?
Consequences depend on the case and seriousness. Missing evidence can complicate an audit; substantial defects may call the records into question and potentially lead to estimates. A minor formal error does not automatically trigger a penalty.