What is an eInvoice?

An e-invoice (electronic invoice) is a digital form of an invoice that is created, transmitted and received electronically. Unlike a traditional paper invoice, it is issued in a structured electronic format that allows for automatic and digital processing.

Important features of an e-invoice are:

• Electronic format: typical formats are XML, PDF with embedded XML, EDI or ZUGFeRD (in Germany and other EU countries).
• Legal recognition: in many countries (such as the EU), an e-invoice is legally recognised under certain conditions and can be used as an official document.
• Automated processing: Since the invoice is structured and machine-readable, it can be processed directly in ERP systems and accounting software, reducing the need for manual processing.

The introduction of e-invoices aims to reduce costs, speed up the billing process and minimise errors.

Mandatory from 1 January 2025

From 1 January 2025, electronic invoicing will be mandatory in Germany for all entrepreneurs and companies when they do business with other companies (B2B) within Germany. This measure is part of the effort to combat tax fraud and promote digitalisation in accounting.

Key points of the new regulation from 2025:

1. Requirement for B2B transactions: Companies issuing invoices to other companies within Germany must send them as electronic invoices in a structured format (e.g. XML).
2. Standard formats: It is expected that formats such as ZUGFeRD or XRechnung will be used, as these are machine-readable and enable automated processing.
3. VAT relevance: e-invoices will play a central role in connection with VAT in particular, as they enable transparent and traceable recording of tax data.

This change is part of the harmonisation within the European Union, where several countries have already introduced similar obligations. The aim is to make processes more efficient and to reduce tax fraud through the use of fake invoices.