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News: Electronic invoicing (e-invoicing) from 2025

For readers in a hurry:

Mandatory introduction from 2025: From January 1, 2025, all companies in the B2B sector must receive, process and archive electronic invoices (e-invoices) in a legally compliant manner. Paper and PDF invoices will then no longer be recognized as electronic invoices.
Accepted formats: The e-invoice must be in a structured format in accordance with the European standards (EN 16931), e.g. XRechnung or ZUGFeRD. These formats facilitate machine processing.
Transitional regulations until 2028: There are various transitional periods until the end of 2027 during which paper invoices or simple PDF invoices can still be used under certain conditions.
Preparation: Companies must adapt their internal processes, accounting and ERP systems and train employees to meet the new requirements and avoid legal risks.

When does the obligation to e-bill come into effect?

From 2025, electronic invoicing (e-invoicing) will be mandatory in Germany. This means that all business transactions between companies (B2B) must be processed in an electronic format. The basis for the implementation of these legal requirements is the Growth Opportunities Act, which sets out the provisions on the e-invoicing obligation. The law was promulgated in the Federal Law Gazette on 27.03.2024 and defines which companies are obliged to issue invoices electronically and which electronic formats are accepted.

Requirements for the e-bill

Format

The e-invoice must be transmitted in a structured electronic format that complies with European standards (EN 16931). These requirements are met, for example, by the XRechnung and the hybrid ZUGFeRD format. These differ in their structure and application. XRechnung, an XML-based format, was developed specifically for the public sector and fulfills the legal requirements of the EU. Zugferd (Zentraler User Guide des Forums elektronische Rechnung Deutschland) combines XML and PDF data, making it readable for both machines and humans, and is suitable for use in the private sector. Further information on these and other formats as well as the possibilities of automation can be found in our blog post "Automating Zugferd, Faktur-X and XRechnung".

Content and transmission

The e-invoice must contain all legally required information that is also required for conventional invoices. This includes, for example, tax number, invoice date, service description, amount, etc.
Instead of simple PDF files or paper invoices, e-invoices must be able to be created, transmitted and received in a structured electronic format. The format contains specific placements for information such as date, amount and service recipient, which facilitates machine processing.

With the introduction of e-invoicing from 2025, paper and PDF invoices will be classified as "other invoices". An invoice sent by email in PDF format will therefore no longer be recognized as an electronic invoice.

Will all companies have to issue e-invoices from 2025?

From 2025, all companies in the B2B sector, regardless of their size, must be able to receive, process and archive electronic invoices in a legally compliant manner. This obligation applies across all sectors for domestic business transactions, meaning that small, medium-sized and large companies are all affected by the regulations.

Electronic invoices enable companies to send and receive invoices more quickly and efficiently, which significantly speeds up the handling of business processes. The switch to e-invoicing therefore marks a further step towards the digitalization of business processes and helps to increase efficiency.

E-bill 2025: deadlines and transitional regulations

Transitional arrangements are planned for the years 2025 to 2028. These are intended to give companies sufficient time to adapt to the new requirements and make the necessary adjustments to their accounting and IT systems. The regulations essentially differentiate between issuing and receiving an invoice.

Transitional arrangements

Invoicing: In principle, even after 01.01.2025, it is permissible in certain cases to issue paper invoices or electronic invoices in PDF format for B2B transactions that do not comply with the new format. However, this always requires the consent of the invoice recipient.

Invoice receipt: If companies want to send their B2B invoices in the prescribed electronic format from 2025, the invoice recipient's consent is not required. Accordingly, from January 1, 2025, all companies must be able to receive, process and archive electronic invoices in an audit-proof manner in accordance with the requirements of the Growth Opportunities Act.

The deadlines at a glance

January 1, 2025: Start of the new regulations on mandatory electronic invoicing. Companies must ensure the receipt, processing and audit-proof archiving of e-invoices.
December 31, 2026: Transitional period for B2B transactions carried out in 2025 and 2026. These can still be sent as paper invoices or PDF invoices if the invoice recipient agrees.
December 31, 2027: Companies with a maximum turnover of EUR 800,000 in the previous year (2026) may continue to use paper invoices or electronic invoices that do not comply with the new format for B2B transactions carried out in 2027, provided the recipient agrees.
January 1, 2028: All domestic companies must comply with the new requirements for e-invoices and their transmission in the B2B sector.

Small-value invoices under 250 euros are exempt from the e-invoice obligation. As before, these can be transmitted as "other invoices".

Preparing for the e-invoicing obligation

The introduction of e-billing from 2025 will bring with it numerous changes and adjustments that may affect existing workflows.

Process adjustments: Companies should review their internal invoicing and approval processes and adapt them to the requirements of e-invoicing.
Systems and software: Companies must adapt or update their accounting and ERP (Enterprise Resource Planning) systems to be able to create and process e-invoices, ensuring that all legal requirements are met and that invoices comply with the new legal requirements.
Training and education: Employees must be trained to understand and effectively use the new processes and systems.

Switching to e-invoices at an early stage enables companies to avoid legal risks and at the same time secure a competitive edge.

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What does the e-invoicing obligation mean from 2025?

The e-invoicing obligation from 2025 means that certain companies are obliged to send invoices to their invoice recipients exclusively in electronic form.

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When does the e-bill obligation come into force?

The e-invoicing obligation will come into force in Germany from January 1, 2025 in accordance with the Growth Opportunities Act. Transitional regulations offer companies the opportunity to prepare for the new requirements.

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Who will be affected by the e-invoicing obligation from 2025?

Companies that issue invoices to public clients will be affected by the e-invoicing obligation from 2025 if the invoices are issued in electronic format.

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Which formats are relevant for the e-invoicing obligation?

The XRechnung and ZUGFeRD formats, which enable electronic processing, are particularly relevant for the e-invoicing obligation from 2025. Both formats are compliant with European standards and enable automated processing of invoices, which reduces administrative effort and minimizes errors. Companies should ensure that they use one of these formats in order to comply with legal requirements and to make invoice exchange efficient.

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What information does the Federal Ministry of Finance provide on the e-invoicing obligation?

The Federal Ministry of Finance (BMF) is responsible for the legal regulation and implementation of the e-invoicing obligation in Germany. The BMF develops the relevant specifications and guidelines to ensure that companies create and send electronic invoices in accordance with legal requirements.

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What are the advantages of introducing an electronic invoice format?

The introduction of an electronic invoice format enables invoices to be processed more efficiently by means of electronic data exchange and contributes to the digitalization of accounting.

About Business Automatica GmbH:

Business Automatica reduces process costs by automating manual activities, increases the quality of data exchange in complex system architectures and connects on-premise systems with modern cloud and SaaS architectures. Applied artificial intelligence in the company is an integral part of this. Business Automatica also offers automation solutions from the cloud that are geared towards cyber security.

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