E-Invoicing in Germany 2025: What You Need to Know Now

As of January 1, 2025, all German businesses must be able to receive structured e-invoices for B2B transactions. This marks a significant shift in how business-to-business invoicing works in Europe's largest economy.

What Changed on January 1, 2025?

The German government implemented the first phase of its B2B e-invoicing mandate. Here's what this means:

• All businesses registered for VAT in Germany must now accept e-invoices
• E-invoices must comply with the EN 16931 European standard
• Accepted formats include XRechnung, ZUGFeRD 2.x, and Peppol BIS Billing 3.0
• PDF invoices are no longer considered compliant e-invoices

The Full Timeline

Germany's B2B e-invoicing rollout happens in phases:

Phase 1: Reception (Now Active)

From January 2025, every German business must be technically capable of receiving e-invoices. This means:

• Having software that can parse EN 16931-compliant XML
• Being able to extract invoice data from structured formats
• Properly archiving received e-invoices (10-year retention)

Phase 2: Sending for Large Businesses (2027)

Starting January 2027, businesses with annual revenue exceeding €800,000 must send e-invoices for all domestic B2B transactions.

Phase 3: Full Mandate (2028)

From January 2028, all businesses regardless of size must send structured e-invoices.

Which Formats Are Accepted?

Germany accepts any format compliant with the European standard EN 16931:

XRechnung

The German national standard, XRechnung is a pure XML format available in both UBL and CII syntaxes. It's the most commonly used format for B2G transactions and is fully EN 16931 compliant.

ZUGFeRD 2.x

ZUGFeRD is a hybrid format that embeds structured XML data within a PDF/A-3 file. This allows the invoice to be human-readable (as a PDF) while also being machine-processable. ZUGFeRD 2.x profiles "Extended" and above are EN 16931 compliant.

Peppol BIS Billing 3.0

For businesses already on the Peppol network, Peppol BIS Billing 3.0 invoices are accepted. This is particularly useful for companies with international operations.

What About Cross-Border Transactions?

The German B2B mandate primarily affects domestic transactions between German businesses. However, there are important considerations:

• Cross-border sales to German businesses may increasingly be requested in e-invoice format
• The EU's ViDA directive will mandate cross-border B2B e-invoicing from 2030
• Using Peppol now prepares you for future EU requirements

How to Prepare Your Business

1. Audit Your Current Invoicing

Review how you currently receive invoices:

• What formats do your suppliers use?
• Can your accounting software process XML invoices?
• How do you archive invoice documents?

2. Update Your Software

Ensure your ERP or accounting software can:

• Receive and parse XRechnung/ZUGFeRD formats
• Map e-invoice data to your accounting system
• Store invoices in compliant format for 10 years

3. Communicate with Suppliers

Let your suppliers know you can receive e-invoices. This helps them prepare for their own sending obligations in 2027/2028.

4. Consider Peppol Registration

Registering on the Peppol network provides a standardized way to receive (and later send) e-invoices. It also prepares you for future EU cross-border requirements.

Common Questions

Q: Do I need to send e-invoices now?

No, sending is not mandatory until 2027 (large businesses) or 2028 (all businesses). However, you must be able to receive them.

Q: Can I still accept PDF invoices?

You should still accept PDF invoices from businesses not yet required to send e-invoices. However, be prepared to process structured e-invoices as more suppliers adopt them.

Q: What if my supplier sends a non-compliant format?

You're not required to reject non-compliant invoices. However, when the sending mandate takes effect, non-compliant invoices may affect VAT deduction eligibility.

Q: Is Peppol mandatory in Germany?

No, Peppol is one accepted transmission method but is not mandatory. You can receive e-invoices via email or other electronic channels.

Validate Your E-Invoices

Before processing an e-invoice, it's good practice to validate it against the EN 16931 standard. Our free validator checks:

• XML structure validity
• EN 16931 compliance
• Business rule validation
• Country-specific requirements

Stay Updated

E-invoicing regulations in Germany and across the EU continue to evolve. Bookmark our changelog to stay informed about regulatory updates.