E-Invoicing in Germany
Germany’s Federal Ministry of Finance (BMF) has initiated mandatory e-invoicing to digitize the exchange of structured invoice data between businesses and public authorities (B2B and B2G). E-invoicing will improve automation of accounting processes, reduce billing errors, and strengthen tax compliance on business transactions. All companies have been required to receive e-invoices since January 1, 2025, while large businesses with an annual turnover above €800,000 must issue e-invoices starting January 1, 2027. Public sector suppliers (B2G) have been submitting e-invoices since 2020, and by January 1, 2028, e-invoicing will be mandatory for all companies.
The system improves invoice accuracy, supports secure transactions, and enables smooth operations for partners across Germany and the EU. This blog will cover the requirements for e-invoicing in Germany, accepted formats, key deadlines, who must comply, system integration, validation rules, benefits, and how Flick Network supports businesses in adopting e-invoicing smoothly.
What Is E-Invoicing in Germany
E-invoicing in Germany is the electronic exchange of structured invoice data between businesses and public authorities based on the European Norm (EN 16931). The standard ensures uniform invoice content across the EU and will allow automation of accounting with less manual work. Since January 2025, all companies must be able to receive an electronic invoice that follows the standard.
The accepted formats are XRechnung and ZUGFeRD. XRechnung is an XML-based format for public sector (B2G) transactions. ZUGFeRD is a hybrid format with a human-readable PDF and embedded XML, allowing automatic processing and manual review.
XRechnung is required for invoices sent to government authorities on the system. ZUGFeRD will be used in B2B transactions if trading partners agree on the format. Both formats will ensure compliance with EU rules, improve the accuracy of accounting records, and integrate with ERP and accounting systems on the platform.
Key Deadlines and Requirements
Germany introduced e-invoicing in stages so businesses will adapt without disruption. The requirements depend on the type of transaction and the size of the company.
Since November 2020: This applies to suppliers of goods or services to public authorities on B2G transactions. These suppliers issue e-invoices for all public procurement on the system, with every invoice fully digital, secure, accurate, and aligned with government standards.
January 1, 2025: All businesses will need systems to receive e-invoices that comply with the European Norm of EN 16931. Every company will be able to receive, validate, and store electronic invoices on the system for accounting, audit, and regulatory purposes.
January 1, 2027: Businesses with annual turnover above €800,000 will be required to issue e-invoices on all transactions in the approved formats. Accounting or ERP systems will generate, validate, and integrate invoices automatically to comply with the rules of the Federal Ministry of Finance.
January 1, 2028: E-invoicing will extend to all companies in Germany. From that date, every transaction will be completed with fully digital invoices that are accurate, traceable, and compliant on the system with national and EU standards.
Scope and Exemptions of E-Invoicing in Germany
E-invoicing in Germany is the electronic exchange of a structured invoice that ensures efficient processing of payments and compliance with the accounting standards of the country. It applies to both B2G (Business to Government) and B2B (Business to Business) transactions. Accepted formats for e-invoices in Germany include XRechnung, ZUGFeRD, and PEPPOL.
It encompasses:
- Invoices for goods and services supplied within the territory of Germany.
- Invoices issued to public authorities at the federal level, the state level, or the municipal level.
- Cross-border invoices to EU-based businesses or authorities on the condition that they adhere to the EN 16931 standards.
- Domestic invoices and invoices complying with EU VAT rules.
Certain invoices are exempt from structured e-invoicing:
- Low-value invoices that are below €250, though a record of each invoice must still be maintained for audit purposes.
- Passenger transport tickets and selected services of public transport.
- Invoices issued by private individuals to businesses if they are not related to taxable supplies under German VAT law.
Benefits of E-Invoicing in Germany
E-invoicing in Germany will change the way businesses and public suppliers handle the processing of invoices. The system will speed up the handling of transactions, reduce errors on the records of companies, and ensure compliance with the rules of the Federal Ministry of Finance. Using e-invoices will also simplify the management of accounting records and support faster transactions for partners across Germany and the EU.
Efficiency: E-invoicing will automate the processing of a large number of invoices, reduce manual work on accounting tasks, and improve the speed of transaction handling on the systems of businesses.
Accuracy: The use of structured electronic data will reduce mistakes on records caused by manual entry and maintain reliable accounting data for the operations of companies.
Compliance: E-invoices will help businesses and public suppliers follow the legal requirements, comply with the EN 16931 standard, and meet the rules of the Federal Ministry of Finance on all transactions.
Cost Savings: Reducing the use of paper, storage of documents, and manual processing will lower operational costs and maintain audit-ready records for the accounts of companies.
How to Prepare for E-Invoicing in Germany
Preparing for e-invoicing in Germany helps businesses and public suppliers follow Federal Ministry of Finance rules and maintain smooth invoice handling. Following steps on systems, staff training, testing, and expert advice will improve processing and reduce errors in records.
Assess Your Systems: Check if the software of your business can generate and receive XRechnung or ZUGFeRD invoices. Update or replace systems to handle electronic invoices on all transactions.
Train Staff: Teach the team about issuing and receiving e-invoices. Staff will learn the required formats, legal rules, and handling of electronic records to maintain correct processing on operations.
Test Systems: Run tests to confirm e-invoices process correctly. This will highlight issues on compatibility with accounting or ERP software and allow fixes before live use.
Consult Experts: Contact professionals for support on e-invoicing. They will help set up systems correctly, ensure compliance with legal rules, and integrate processes smoothly into business operations.
How Flick Helps Businesses with E-Invoicing in Germany
Flick Network provides a complete e-invoicing solution for businesses and public sector suppliers of all sizes in Germany. The platform integrates with existing ERP or billing systems without disrupting workflows. Companies can adopt e-invoicing smoothly while maintaining operational efficiency on the system. Flick offers the following features to ensure compliance and smooth operations:
Generate e-invoices in approved formats: Flick will create invoices in XRechnung or ZUGFeRD formats recognized by the Federal Ministry of Finance. Every invoice will be validated automatically for compliance and accuracy. This will reduce manual errors and ensure all transactions remain traceable and correct on the system.
Connect directly with government authorities and business partners: Businesses will send and receive invoices through certified channels. Invoices will be delivered securely with automatic validation. This ensures compliance on every submission for B2G and B2B transactions.
Manage corrections and credit notes efficiently: Corrections or credit notes can be issued directly on the platform. Records will remain accurate and an audit trail will be maintained. This reduces the risk of penalties or delays on invoicing.
Handle high invoice volumes effortlessly: Large daily invoice volumes will be processed without affecting ERP or billing operations, allowing businesses to continue transactions smoothly during peak periods on the system.
Receive invoices digitally: Companies will receive invoices from suppliers electronically through Flick’s integration. Records will remain digital, easy to track, and compliant with German rules on every invoice.
Access ongoing local support: Flick provides continuous assistance for setup, onboarding, and daily operations. Businesses will get guidance on maintaining smooth e-invoicing processes on the platform.
Conclusion
E-invoicing in Germany is a secure and efficient method for a business or public supplier to issue invoices electronically on the XRechnung or ZUGFeRD formats. The system will lower the cost of invoice processing, reduce errors on accounting records, and speed up payment cycles for all transactions. E-invoicing is mandatory for government suppliers on B2G transactions and for businesses with an annual turnover above €800,000. The requirement will extend to all companies, while other businesses can adopt e-invoicing voluntarily to streamline billing, reduce manual work, and maintain audit-ready records on the system.
Failure to comply will result in penalties and will impact the efficiency of operations on the business. Early adoption will help a company stay ahead of regulatory requirements and enable faster, reliable, and fully compliant transactions on the system.
FAQs
What formats are accepted for e-invoices in Germany?
XRechnung and ZUGFeRD are used on the system. Every invoice will be a structured document, accurate for accounting, and compliant on the system for B2G and B2B transactions.Are there any exceptions to the e-invoicing mandate in Germany?
Invoices below €250 and passenger tickets will not require e-invoices on the system. Records of these transactions will still remain on the system for accounting and audit.What happens if a business does not comply with e-invoicing rules in Germany?
Non-compliance will bring penalties on the business and delays on the system. Accounting records may be affected and payment cycles slowed.How can Flick help businesses with e-invoicing in Germany?
Flick Network will connect with ERP and billing systems. The platform will keep invoices compliant, accurate, traceable, and support daily operations on the system.What are the benefits of adopting e-invoicing early in Germany?
Early adoption will reduce manual work on accounting, improve the accuracy of records, speed up payments, and maintain audit-ready data on the system.