eInvoice (electronic invoice)
The eInvoice (electronic invoice) is an invoice that is available in a structured, machine-readable format and allows the data to be processed automatically without manual intervention. This distinguishes the eInvoice from conventional PDF invoices, which can be sent digitally but do not offer a structured data basis for automated processing.
Important: From January 1, 2025, e-invoicing will also be mandatory in the B2B sector. There are transitional provisions according to § 27 para. 39 UStG (click here for more information).
Characteristics of the eInvoice:
- Structured Data Format: The invoice is created in an XML-based format (e.g., XRechnung, ZUGFeRD). This means that the invoice is not only visually readable but can also be automatically read and processed by IT systems.
- Automated Processing: eInvoices enable automated transfer of invoice data from one system to another, thereby reducing errors and increasing efficiency in accounting.
- Legal Requirements: eInvoices meet the legal requirements for electronic invoice exchange and are often necessary to work with public contracting authorities (B2G).
Mandatory use of eInvoices from 2025
From January 01, 2025, a far-reaching obligation to use electronic invoices will come into force in Germany, also in the B2B sector (Business-to-Business). This means that companies exchanging invoices with each other must send them as eInvoices in a structured electronic format from this date onwards.
As of January 1, 2025, electronic invoices (e-invoices) are generally mandatory in Germany for business transactions between domestic companies (B2B). This also applies to online shops if they sell goods or services to other companies within Germany. In these cases, invoices must be issued, transmitted, and received in a structured electronic format that enables automatic processing. Formats such as XRechnung or ZUGFeRD meet these requirements.
It is important that simple PDF invoices or paper invoices are no longer recognized as electronic invoices from this date onwards. However, there are transitional provisions: Until December 31, 2026, companies may continue to send paper invoices, and other electronic formats (e.g. PDF) can be used with the recipient's consent.
Companies with an annual turnover of less than €800,000 are even permitted to use these formats until 31 December 2027.
For sales to private customers (B2C), there is no obligation to issue e-invoices. This means that online shops that sell exclusively to end consumers are not subject to this requirement. Nevertheless, such shops should also be able to receive electronic invoices, as they may be supplied by other companies that issue e-invoices.
Federal Ministry of Finance
In summary, the new e-invoicing requirement applies from 2025 to online shops in the B2B sector. There is no such obligation for the B2C sector. However, it is advisable to familiarize yourself with the new requirements early on and adapt your own systems accordingly.
Reasons for the introduction of the eInvoice mandate from 2025:
- EU requirements: The introduction of the e-invoicing obligation is based on EU Directive 2014/55/EU, which regulates electronic invoicing in the public sector and lays the foundation for the gradual introduction of e-invoicing in the private sector. Many EU countries have already adopted similar regulations to promote the digital invoicing process.
- Increased efficiency: Electronic invoices reduce processing time, minimize paper consumption and errors, and enable companies to optimize their accounting. These efficiency gains are particularly significant for the B2B sector.
- Combating tax fraud: The introduction of a mandatory e-invoicing obligation supports tax authorities in combating tax fraud. Since invoices are transmitted in a structured and digital format, the tax administration can more easily access and monitor tax-relevant data.
Who is affected by the obligation?
- All companies in the B2B (Business-to-Business) sector in Germany will be obliged to send and receive electronic invoices from January 1, 2025. This affects all sectors and company sizes.
- Exception: There may be exceptions for small businesses or certain special cases, but the exact scope of these regulations has not yet been determined.
Permissible formats will be:
- XRechnung: This XML-based format is already used in the public sector and meets the requirements for e-invoicing.
- ZUGFeRD: The hybrid format ZUGFeRD 2.1 in the EN 16931 profile can also be used, as it contains structured XML and complies with EU standards.
- Other XML formats: As long as they meet the requirements of the EU directive and national legislation, other XML-based formats are also permissible.
Advantages of e-invoicing for businesses:
- Cost Reduction: By automating processes, costs for paper, postage, and manual processing can be saved.
- Accelerated Payments: Faster and more accurate invoice processing allows payments to be handled more efficiently.
- Improved Traceability: Electronic invoices facilitate the archiving and traceability of invoice data, which is also beneficial for audits and tax inspections.
From 2025, e-invoicing will also become mandatory in the B2B sector in Germany. This change is part of a larger trend towards the digitalization of business processes in Europe. Companies should prepare early to adapt their invoicing processes to meet the new legal requirements and simultaneously benefit from the advantages of e-invoicing.
Relevant blog post:
Confusion between e-invoice and XRechnung – Differences & Comparison
The terms e-invoiceandXRechnung are often associated with each other but do not mean the same thing, even if there are overlaps. Here is the difference between the two terms:
1. eInvoice (electronic invoice)
The eInvoice is a general term that refers to any type of electronic invoice. It includes all invoices that are created and sent in a digital, structured format that allows for automated processing. An eInvoice can be in various formats that meet the requirements of EU Directive 2014/55/EU. These include formats such as:
It is important that an eInvoice contains machine-readable data that can be automatically processed by IT systems, in contrast to a simple PDF invoice, which is only human-readable.
2. XRechnung
The XRechnung is a specific type of e-invoice. It is a standardized, XML-based format developed specifically in Germany and complies with the requirements of EU Directive 2014/55/EU. XRechnung is mandatory for invoices to public contracting authorities (B2G) in Germany and is tailored to the needs of the public sector.
Main differences:
- e-invoice: A generic term for all electronic invoices that are in a structured format. It can be in various formats (XRechnung, ZUGFeRD, etc.).
- XRechnung: A specific e-invoice format used in Germany for exchange with the public sector and based on XML.
Every XRechnung is an e-invoice, but not every e-invoice is an XRechnung. The e-invoice is a general term, while the XRechnung is a specific format for electronic invoice exchange in Germany, especially in connection with public administration.
Software tip Papierkram or Lexoffice:
Papierkram has been able to create e-invoices for several years now. Previously, this was only possible from package S, but now this function is also included in the Free package. As before, the strict „XRechnung“ standard required by authorities can also be met in package S.
Create e-invoices in all packages
A „E-invoice“ button is now available in all packages in the invoice view. This button is located to the left of the PDF download, which you can use to generate the PDF of the invoice.
With one click, you can download an e-invoice file, which you can then forward to your invoice recipients (preferably by email).
ZUGFeRD from Package S
If the „ZUGFeRD (PDF/A + XRechnung)“ format is selected under Settings > Document Templates > E-invoice/ZUGFeRD, then all invoices are automatically generated as ZUGFeRD documents. This means that the required data is attached to the PDF in machine-readable form.
Fields for XRechnungen
An e-invoice that is intended to meet the „XRechnung“ standard requires significantly more information than a simple e-invoice to private companies, which only has to meet the requirements of §14 (4) UStG. This format is actually only necessary if you write invoices to authorities or to some corporations (such as Deutsche Bahn). The required information will usually be communicated to you by the client.
Create XRechnung
You will find the additional XRechnung fields – as before – in the invoice draft below the item table in the „XRechnung“ tab. Here you can enter the required data into the respective fields.
This function is only included from package S onwards. So, if you need these fields when creating invoices because you issue invoices to authorities, you can fill them in from package S onwards.
Receive e-invoices
In all packages, it is now possible to receive, visualize, and process e-invoices.
Upload e-invoice
Regardless of whether you receive an e-invoice in PDF format with attached XML data (ZUGFeRD) or an XML file, you can now upload the file directly as an attachment. Simply click on the attachment field and select the file or drag and drop it onto the field. All information will be read out and a clearly readable summary will be generated.
All information can then be adopted with a single click. Afterwards, you save and book the receipt as usual. The summary of the data can be read or downloaded as a PDF at any time in the receipt attachment.
Receiving e-invoices via inbox
Should you wish for a complete transfer of all invoice items, you can also first upload the file to the inbox and transfer it from there to a receipt. Then all invoice items of the e-invoice are already created.
Receiving e-invoices in all packages
This function for receiving e-invoices is included in all packages, you can also use this function in the Free package. This means that all requirements for e-invoicing are met in all packages.
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