What are the GoBD?

GoBD: definition and significance

The GoBD are a circular from the German Federal Ministry of Finance (BMF) that specifies the statutory obligations under the Fiscal Code and the Commercial Code for bookkeeping on computers. It is not a law, but it binds the tax authorities and is the yardstick in tax audits. The current version goes back to the circular of November 28, 2019, and has been updated since.

The GoBD concern everyone who keeps books or creates records for tax purposes: companies, self-employed people using cash-basis accounting and businesses that prepare balance sheets alike. They apply to accounting, cash register, ERP and billing software, to scanned receipts and to tax-relevant data in upstream and downstream systems.

The core principles

The core of the GoBD is that a knowledgeable third party can follow the bookkeeping within a reasonable time. For this, business transactions must be recorded completely, correctly, in a timely manner and in an orderly way. Entries and records must not be changed without a log; changes must remain recognizable and traceable. This applies to paper and software alike.

• Traceability and verifiability from the receipt to the evaluation
• Completeness and accuracy of recorded business transactions
• Timely recording, for example cash receipts daily
• Immutability: changes are logged rather than overwritten
• Process documentation describing procedures and systems
• Retention and data access for the tax authorities

Real-world example: a trades business scans its receipts

A skilled-trades business scans its incoming invoices, discards the paper originals and saves the scans in a shared folder. During a tax audit, the auditor asks for the process documentation and for how it is ensured that the scans are complete and unaltered. The scanning procedure is not described, and the folder is not protected against changes.

A better approach is a documented process: who scans when, how quality is checked, where files are stored. This includes a document management or accounting system with a change log and permission concept, a rule for destroying the paper originals and regular backups. With this documentation, replacement scanning can be demonstrated.

Retention, mistakes and limits

Books, annual financial statements and records generally must be kept for ten years, accounting vouchers for eight years since 2025, and commercial and business letters for six years. During this time, the data must remain readable, unalterable and machine-readable. In an audit, the tax authorities have a right of data access, up to handing over the data on a storage medium.

Typical mistakes: archiving only a PDF image instead of the original data, leaving invoices in the email inbox, using spreadsheets without a change log as bookkeeping, switching systems without migrating the data, and lacking process documentation. Structured e-invoices must be kept in their original format.

What companies should look out for

Clarify with your tax advisor which systems hold tax-relevant data, and check whether they log changes, assign permissions and export data. Document processes and responsibilities, including for interfaces. Nano Concepts develops interfaces as well as archive and document solutions so that data is handed over completely and traceably. This article does not replace legal advice.