Electronic invoices (e-invoices) will be mandatory in the B2B sector from 2025. The regulation affects all companies in Germany and will be introduced in stages. But what does the introduction of e-invoicing mean and how do you prepare for this legal change? We answer all open questions.
What is an e-bill?
An e-invoice is an invoice that is issued, transmitted and received in a structured electronic format. Such an electronic invoice presents the information and content of an invoice as a machine-readable data record that can be read digitally. The electronic invoice thus replaces the previous formats of invoices: Paper, image or PDF format.
Unlike its predecessors, the e-invoice is designed as a purely semantic data format. This enables the seamless integration of invoice data and information into companies' invoicing programs. The format of the invoice must comply with the European standard for electronic invoicing - this should ensure the security of the data and the problem-free transmission of the information. The following has already been confirmed Conformity of the XRechnung and ZUGFeRD formats. By the way: By using visualization programs, the digital e-bill can also be displayed in a way that can be read by humans.
XRechnung and ZUGFeRD
Two common formats for e-invoices are XRechnung and ZUGFeRD. Both formats meet all EU requirements and offer companies a reliable and legally compliant implementation of the e-invoice obligation.
Would like You know which format is suitable for your company, please read here continue or Contact us Our experts.
You will also receive additional information on how it works, legal requirements and the changeover to the electronic invoice format.
Why is the e-bill coming?
The mandatory introduction of e-billing is part of the Growth Opportunities Act. This is intended to provide new impetus for more growth, investment and innovation in the German economy. The introduction of the innovative e-invoice, for example, should save enormous costs and help Germany to catch up internationally - electronic invoicing has already been introduced in many other EU countries and some third countries.
The cost savings of the electronic invoice are indeed remarkable. Calculations show that the savings when switching from paper-based invoices to e-invoices can range from €4.50 (for the invoice sender) to around €11.20 (for the invoice recipient). In addition, there are many benefits from optimizing and digitizing processes that were previously paper-based - slower and more error-prone.
This means that the e-invoice has key advantages over the traditional paper invoice:
- Acceleration of the invoicing process
- Automatic transmission of digital information
- Seamless integration of the invoice into the company software
- Fewer errors
- Lower costs
When will the e-bill arrive?
The basic obligation to issue and process electronic invoices will apply from 01.01.2025. In order to give companies the necessary time to switch to the new formats, the German government has decided on transitional regulations that will enable the gradual introduction of e-invoicing by 2028. Another project is also to be implemented by 2028: The EU's electronic reporting system, which is to be fed from e-invoice data. Below is the timetable for the introduction and transitional arrangements:
Until the end of 2026:
- Paper invoices for B2B sales from 2025 and 2026 may be sent and received
- E-invoices that do not comply with the new format remain permissible (with the consent of the invoice recipient)
Until the end of 2027:
- Paper invoices for B2B sales from 2027 may be sent and received
- E-invoices that do not comply with the new format remain permissible (with the consent of the invoice recipient); additional requirement: previous year's turnover of the invoice issuer: max. 800,000
From 2028:
- All regulations in force and to be complied with
- Invoices in paper or an unauthorized format may no longer be sent or received
- Introduction: Electronic reporting system
Who is affected by the change?
The obligation to issue an electronic invoice applies to taxable supplies between entrepreneurs (B2B) - regardless of whether the business is run as a main or secondary source of income. Transitional regulations apply to small businesses until 2028, but they will also be obliged to issue electronic invoices by then at the latest. In addition, the supplier and recipient must be domiciled in Germany.
What do companies need to consider?
Although companies have been given a time extension to implement a digital invoicing system due to the transitional regulation, they should address the issue of e-invoicing as soon as possible. Due to the ongoing spread of electronic invoices, processes between companies are becoming increasingly digital and it is expected that the new standard will be established well before 2028.
The reasons for this are obvious: e-invoicing ensures the optimization of internal and external processes, an efficient flow of the information it contains and enormous cost savings in accounting. Many companies would like to benefit from these advantages sooner rather than later. In order to implement e-invoicing as profitably as possible, it is advisable to work with an experienced partner.
A number of decisions need to be made on the path to digital invoicing that will determine the efficiency of the new processes. For example, the approved formats for electronic invoices, XRechnung and ZUGFeRD, differ slightly from one another in terms of their functions. It is important to weigh up competently which is the right one for the individual requirements of your own company.
Conclusion: companies benefit from the e-bill
As part of the Growth Opportunities Act, the introduction of e-invoicing is intended to facilitate more innovation and growth in Germany. And in fact, according to current knowledge, electronic invoicing modernizes processes in companies and ensures enormous cost savings. The mandatory introduction of electronic invoices is therefore primarily an opportunity for companies to increase their competitiveness and optimize processes sustainably through comprehensive digitalization. The team of experts from Konfuzio is at your side during this transformation and for the reliable implementation of e-invoicing with numerous advanced technologies - regardless of whether your company primarily receives e-invoices or requires competent invoicing solutions.
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