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E-invoicing in Germany
The E-invoicing Mandate in Germany
Starting January 1, 2025, all businesses involved in B2B transactions will be required to receive electronic invoicing, following the recent approval by the Federal Council on 23rd March 2024. This marks the initial step towards a more digitized Germany.
Over multiple phases, further mandates for electronic invoicing will be implemented. By January 2028, obligatory sending and receiving of B2B invoices electronically in EN16931 formats will be mandated for all businesses in Germany. This change is part of the German government's plans to digitalize their VAT and invoicing processes.
As traditional invoicing methods begin to phase out, and all companies will be required to send electronic invoices from the 1st of January 2028, it is strongly recommended to find an e-invoicing solution now.
What is E-invoicing?
As part of the new legislative proposal, there is an introduction of a precise description outlining what constitutes an electronic invoice in Germany.
An electronic invoice is defined as one created electronically and sent and received electronically. An integral aspect of this definition is that the invoice must be capable of electronic processing, which means it can be integrated into automated processes and systems.
Moreover, an e-invoice must adhere to the standards set by the European Committee for Standardization (CEN). This standard is identified as EN 16931, a European standard that ensures uniformity and cross-system compatibility of electronic invoices across different countries.
Checklist: Are you all set for the German Mandate?
If your answer is “No” or “Not sure” to any of these questions, you will most likely benefit from a review of your current e-invoicing setup.
RULES: Are you aware of the German e-invoicing requirements that become effective from the 1st of January 2025?
COMPLIANT: Are you confident that your existing invoicing solution meets the upcoming requirements for e-invoicing?
IMPACT: Are you able to maintain your compliance obligations as cost-effective as possible?
UPDATED: Are you keeping updated on the new format requirements for e-invoicing in Germany?
Timeline for The E-invoicing Mandate in Germany
2025
From 1st of January, all companies in Germany must be able to receive B2B electronic invoices, and companies are no longer allowed to reject the reception of electronic invoices.
It will still be allowed to send invoices in a PDF format, but ONLY if your customer agrees to receive the invoice in PDF. The same applies to the EDIFACT format, but only until the 1st of January 2028.
2027
From the 1st of January 2027, large companies with an annual revenue that exceeds 800.000 Euro have to issue B2B invoices electronically.
2028
From the 1st of January 2028, all companies must send B2B invoices electronically in EN16931 formats.
Formatting Requirements for E-invoicing in Germany
As part of the German e-invoicing mandate, a set of requirements has been formulated regarding which formats are compliant with German legislation.
The formats EN16931 developed by the European Committe of Standardization are:
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XRechnung
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ZUGFeRD > V2.x in
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PEPPOL BIS >= V3
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all other formats compliant with “EN”
Who is it relevant for?
The new e-invoicing mandate in Germany will affects businesses involved in business-to-business (B2B) transactions.
This includes both suppliers and buyers across all sectors and industries. It is important to note that this mandate is relevant for all B2B companies in Germany as well as companies outside of Germany that have subsidiaries in the country.
How can TrueCommerce help?
Transform your E-invoicing processes today!
Reduce costs with compliant digital invoicing ensuring data security and integrity while you benefit from trusted advisors who ensure you stay compliant with the German Mandate to avoid penalties.
Our solution will be seamlessly integrated with your existing systems to optimize your e-invoicing processes so you will free up time to focus on what truly matters: Your Core Business.
Our Solution for E-invoicing
With an e-invoicing solution from TrueCommerce, we ensure that you meet your customers' and suppliers' requirements for receiving e-invoices.
No matter how you prefer to connect with your trading partners—whether through VAN, PEPPOL, or a direct connection—or which format they require, such as BIS, OIOUBL, XRechnung, or another format, we ensure that your e-invoices are compliant with those specifications as well as with the regulatory demands in the specific countries.
Global E-invoicing
Germany is far from the only country to have chosen to introduce e-invoicing regulations. Several countries worldwide have already or are planning to implement similar legislation to promote the digitization of invoicing processes and improve efficiency.
If your company has branches or operations in multiple countries, ensuring compliance with various national e-invoicing standards can be challenging. Therefore, we offer global e-invoicing solutions that can help simplify and centralize your invoicing processes.
