E-Invoicing

Advantages of E-Invoicing

• Reduction of process costs
• Faster processing and payment
• Avoidance of transmission errors
• Environmentally friendly due to paper savings
• Better archiving and traceability

E-Invoice Formats

XRechnung

XRechnung is the German standard for electronic invoices to public contracting authorities. It is based on the European standard EN 16931 and ensures conformity with EU directives.

ZUGFeRD

ZUGFeRD (Central User Guide of the Forum for Electronic Invoicing Germany) is a hybrid format that contains both a PDF file and embedded structured XML data. It is primarily used in the private sector.

Implementation

For the transition to e-invoicing, companies need:

• Suitable software for creation and processing
• Adaptation of internal processes
• Employee training
• Technical infrastructure for secure transmission

Future Outlook

E-invoicing will establish itself as the standard in the coming years. Further standardization of formats and processes is expected to simplify cross-border electronic invoicing. As of January 1, 2025, a significant change will come into effect in Germany: All companies will then be obliged to transmit their invoices to other companies (B2B) electronically. This legal obligation for electronic invoicing is part of the federal government's initiative to digitalize administration and the economy.

The key aspects of the new regulation are:

• Mandatory e-invoicing for all B2B transactions
• Use of structured electronic formats (XRechnung or ZUGFeRD)
• Pure PDF invoices no longer sufficient
• Exceptions only for small businesses and specific special cases

This change means that many companies will have to adapt their invoicing processes accordingly by the end of 2024.