3. March 2025
E-Invoicing in Germany: What You Need to Know for the Future
E-invoicing is coming! From 2025, e-invoicing will become mandatory for many companies in Germany. But what does that mean exactly? This article provides you with a comprehensive overview of the e-invoicing obligation, the background, deadlines, and advantages – and what you need to do now to be prepared.
What is an E-Invoice?
An e-invoice is more than just a digitized paper invoice. It is a structured digital format that enables the automatic exchange and processing of invoice data between sender and recipient. Unlike a PDF invoice, which is merely an image of an invoice, an e-invoice contains machine-readable data.
Englisch: Webinar Announcement
To help you prepare for the mandatory e-invoicing requirements starting in 2025, we warmly invite you to our free webinar! Join tax advisor Nico Kurth and Alf-David Heermann, in collaboration with Flexcon IT, as they provide expert insights on this important topic.
Webinar Topics:
- The legal framework of the e-invoicing mandate.
- Practical tips for smooth implementation in your business.
- Live Q&A session to address your individual concerns.
Date: 3rd April 2025
Location: OnlineDon’t miss this opportunity to gain valuable knowledge and get your questions answered by experts. Register now to secure your spot!
The E-Invoicing Obligation from 2025: Who is Affected?
From January 1, 2025, e-invoicing will gradually become mandatory for companies based in Germany in the B2B (Business-to-Business) sector. This means that companies must exchange invoices electronically with each other. However, there are some exceptions and transitional periods that must be observed. In particular, the issuance of e-invoices will be mandatory for companies based in Germany at the earliest from January 1, 2027.
Why E-Invoicing? Advantages at a Glance
The introduction of e-invoicing offers numerous advantages:
- Increased Efficiency: Automated processing reduces manual effort and speeds up processes.
- Cost Savings: Less paper, printing, and postage reduce costs.
- Error Reduction: Automated data transfer minimizes sources of error.
- Transparency: Improved traceability and audit-proof archiving.
- Sustainability: Less paper consumption protects the environment.
Formats and Standards:
In Germany, the XRechnung format is mainly used. It is based on the European standard EN 16931. It is important that your e-invoices comply with this standard to ensure smooth processing.
What You Should Do Now:
- Inform Yourself: Familiarize yourself with the legal requirements and deadlines.
- Analyze Your Processes: Review your current invoicing processes and identify areas for adjustment.
- Choose a Suitable Solution: Opt for e-invoicing software or a service provider that meets your requirements.
- Train Your Employees: Ensure that your employees are familiar with the new processes and formats.
- Test the Implementation: Conduct test runs to ensure that everything runs smoothly.
E-Invoicing for Landlords:
There are also changes for landlords. It is important to familiarize yourself with the new requirements early on in order to be able to receive and send e-invoices from 2025. This particularly affects the billing of additional costs and other services.
Learn everything you need to know about e-invoicing – directly from the experts!
Our Assessment
From a tax advisor’s perspective, we view the introduction of mandatory e-invoicing in Germany as an opportunity for companies to modernize their accounting and invoicing processes and achieve greater efficiency in the long term. While the transition to a digital invoice format may initially pose challenges—such as adapting existing systems and training employees—the benefits outweigh the hurdles. Automated processes reduce errors, save time and costs, and significantly simplify compliance with tax regulations.
We strongly recommend that businesses take action early to make the most of the transitional period until 2027. Conducting a thorough analysis of current processes and selecting an appropriate e-invoicing solution are critical steps to ensure a smooth transition. It is equally important to engage with business partners early on to ensure that all parties comply with the new standards.
Our experience shows that companies that act proactively and adapt to regulatory changes in a timely manner not only remain compliant but also gain competitive advantages. The digitization of invoicing is not just an obligation but an investment in the future viability of your business.
About the guest author and speaker of the webinar
Alf-David Heermann – Flexcon IT
Managing Partner at Flexcon IT GmbH & Co. KG – He provides valuable tips on technical implementations and presents practical solutions.
