E-invoice obligation from 2025: this is how to prepare

Ready for the e-invoice? On 1 January 2025, all companies, small entrepreneurs and freelancers must be able to receive e-invoices from their suppliers and wholesalers.

By Kirsten Freund

The 1 January 2025 will be a very important reference date for all companies and freelancers in Germany. By this date at the latest, they must be able to receive electronic invoices from other companies. Consequently, those affected should use the final weeks of the year to prepare for the e-invoice issue.

An EU initiative is behind the regulation for comprehensive introduction of e-invoices. In future, all companies should only use e-invoices with each other (B2B).

As a first step, companies should be able to receive e-invoices from other companies, which means they need an e-mail inbox. Following a transitional period from 2027 or 2028 (see box "Schedule for the introduction of e-invoices"), they also have to be able to send e-invoices.

Many advantages thanks to e-invoices

In all probability, many suppliers and wholesalers will probably consistently send e-invoices from 2025 even if they are only obliged to do so from 2027 or 2028, not least because e-invoices have many advantages. For example, they rule out manual transmission errors and save time, personnel- and postage costs.

A special feature of e-invoices is their structured data format. This has to comply with the EN 16931 European standard for electronic invoicing. The European standard permits country- and sector-specific extensions. In Germany, the most common formats are "XRechnung" and the hybrid format ZUGFeRD. The "XRechnung" is a purely XML data set while ZUGFeRD is a combination of a readable PDF file and a data set.

The supplier selects the invoice format

From the turn of the year, companies should also be able to make e-invoices legible with visualisation software - for example, with the free "Quba- viewer", sponsored by the federal government, since they cannot choose whether their wholesaler, electricity provider or car dealer sends an XRechnung or ZUGFeRD invoice. Experts assume that many companies will meet their customers halfway and use the legible ZUGFeRD format.

In addition, companies must deal with the question of how to archive the e-invoices GoBD-compliantly for ten years. Business associations are urging the Federal Ministry for Economic Affairs to at least provide a free tool for creating, receiving and visualising e-invoices for the transitional period. Such a solution is currently still under review.

New official version for invoices

From 2025, a distinction will be drawn between e-invoices and "other invoices" between companies. Invoices on paper, in PDF format or Excel files will be regarded as "other invoices".

The IT service provider Datev is one of the first to provide a solution for the receipt and despatch of electronic invoices among SMEs with its new e-invoice platform. Small companies that are only affected by the issue two to three times a month can also use the tool.

E-invoice composition, part of the e-invoice platform, is intended for companies that very seldom have to write EN 16931 format e-invoices.

Positive side effects

Since the e-invoice affects every entrepreneur, the subject should be discussed with the tax advisor at an early stage. The latter can advise companies and if this has not yet occurred, possibly connect them with the tax office systems via "Datev company online". Alternatively, they can contact their IT service provider to modify the existing software. However, appointment backlogs are expected in the winter.

Grappling with the subject of e-invoices and the associated digitalisation could have the positive side effect for many smaller companies that their bookkeeping becomes GoBD-compliant. If in future you use software or applications that are both GoBD-compliant as well as prepared for e-invoices, you will be on the safe side in the event of a company audit.

The author is an editor at the Deutsche Handwerksblatt, which like LIFTjournal is published by the Verlagsanstalt Handwerk.

Schedule for the introduction of e-invoices: Current situation (2024)
– Sending paper invoices or invoices in PDF format or as jpg files is still customary in the B2B sector unless you have public sector clients.
– The time has come for getting to grips with the e-invoices and if necessary contacting your tax advisor or IT service provider.
– Lift companies that are members of the chambers of handicrafts can get advice there about e-invoices; the handicrafts chambers in part also offer (web-) seminars. You can find the appointments on the homepages of the chambers.

From 1 January 2025 and 2026
– Companies must be able to receive e-invoices.
– Companies can send e-invoices without prior approval of the recipient.
– Paper invoices remain permissible provided the recipient does not demand an e-invoice.
– Companies require an e-mail inbox for receiving e-invoices; however, they can also download the e-invoices from customer portals.
– Companies must be in a position to visualise the structured data of the e-invoice.
– Company archiving of the e-invoices must be GoBD-compliant.
– Small amount invoices up to 250 euros gross, tax-free payments and tickets are excluded.

From 1 January 2027
– Companies with an annual turnover of more than 800,000 euros will be obliged to send e-invoices in the B2B sector from 1 January 2027.
– Bills of quantities and performance specifications or pictures can be attached as PDFs.
– Smaller companies can continue to send paper invoices.
– EDI invoices can still be used until the end of 2027.

From 1 January 2028
– All companies must send e-invoices in the B2B sector without exception.
– Exchanging invoices via the EDI procedure remains permissible provided it is ensured that the information required according to the VAT Act can be extracted completely and correctly in a format that corresponds to the European standard or is interoperable with it.
– In the case of invoices for private clients, "other invoices" remain permissible (on paper or PDF, etc.).

Checklist for SMEs: The Central Association of German Handicrafts (ZDH) and Datev have jointly prepared a checklist for small and medium-sized handicrafts companies. Based on the questions, the latter can clarify or check off how well they are prepared.