In contrast to paper invoices, e-invoices (especially XRechnung, ZUGFeRD) transmit invoice information electronically and can be received and processed automatically. The aim is to simplify accounting processes for all parties involved and handle them quickly, securely and cost-effectively.
Timeline: Mandatory e-invoicing in Germany
- From January 1, 2025, every company must be able to receive and process e-invoices.
- From January 1, 2027, companies with a turnover of more than EUR 800,000 in the previous year will only be allowed to send their own invoices as e-invoices or using the EDI process.
- From January 1, 2028, invoices for sales carried out from 2028 onwards must be issued as e-invoices.
Anyone who fails to comply with the obligation to use e-invoicing may risk fines, the denial of input tax deduction or delayed payments by customers. This means that most companies already have an acute need for action - from the introduction of digital invoice processing and electronic invoice dispatch to the implementation of an audit-proof digital archive.
Our services in the area of e-invoices
- Recording of actual processes and the existing system landscape, documentation in a comprehensible, GoBD-compliant form
- Process analysis: identification of affected systems, processes and company divisions, identification of requirement gaps (target/actual comparison)
- Support with cost estimation and budget planning as well as implementation planning with defined milestones
- IT requirements definition and corresponding communication with the software provider
- Process customization: Implementation of a workflow for master data management, invoice entry and verification as well as the invoicing process
- Review of the system landscape and processes with regard to GoBD compliance.
- Change management: communicating upcoming changes, their impact and benefits for the company, training and further training for affected employees, setting up feedback channels
- Legal support for contract adjustments with customers/suppliers etc.
To whom does the e-invoicing obligation apply?
The e-invoicing obligation applies to all companies that issue invoices to other companies and for which no exemptions apply (e.g. small-value invoices up to EUR 250, travel tickets and services that are tax-free in accordance with Section 4 Nos. 8 to 29 UStG).
To whom does the e-invoicing obligation not apply?
For companies that only issue invoices to private individuals or invoices for which exemptions apply (e.g. small-value invoices up to EUR 250, travel tickets and services that are tax-free in accordance with Section 4 Nos. 8 to 29 UStG).
What is an e-invoice and what formats are available?
An e-invoice is an electronic invoice that is issued in accordance with the CEN standard EN 16931 or is interoperable with it. According to an initial announcement by the tax authorities, the XRechnung and ZUGFeRD formats from version 2.x are currently compatible.
When will e-invoicing be mandatory?
From January 1, 2025, every company must be able to receive and process e-invoices. From this date, the sending of e-invoices will no longer require approval.
For companies with a turnover of at least EUR 800,000 (2026), the sending of e-invoices will be mandatory from January 1, 2027. Exceptions only apply to invoices sent using the EDI procedure.
From January 1, 2028, all companies will be obliged to issue e-invoices for B2B sales, unless exceptions apply.
What IT requirements are necessary and how can e-invoices be created?
Many providers of common ERP and financial accounting systems offer solutions for receiving or creating e-invoices. Approaching the IT service provider should be the first step here in order to subsequently clarify whether the solution offered fulfils the company's own requirements.
What details must be included in an e-invoice?
An e-invoice must contain the same information in accordance with Section 14 UStG as other invoice formats (e.g. PDF or paper). As this is a standardized, structured invoice format, it can be assumed that all necessary information will be included when it is used.
Is procedural documentation necessary for e-invoicing?
Yes, procedural documentation has been required by the tax authorities in the GoBD since 2015 and, if it is not available, together with other deficiencies in the accounting, can lead to the accounting being rejected and additional assessments being made.
With the introduction of e-invoicing, the focus in future will increasingly be on the GoBD-compliant archiving of receipts, which must be carried out electronically and can be presented in the procedural documentation in a way that is comprehensible to an auditor. Process documentation can also be helpful in identifying inefficient processes and processes that need to be adapted as part of the introduction of e-invoicing.
What is the retention period for e-invoices?
The same retention periods apply for e-invoices as for invoice formats already in use (e.g. PDF, paper, EDI), generally 10 years for tax-relevant documents.