Mandatory E-Invoicing from 2025: What Businesses Need to Know
Mandatory E-Invoicing from 2025: What Businesses Need to Know
The introduction of mandatory e-invoicing for B2B transactions is one of the most significant changes in German accounting in decades. With the Growth Opportunities Act (Wachstumschancengesetz), the legislature has set out a clear roadmap.
What Is Changing?
From January 1, 2025, all businesses in Germany must be able to receive electronic invoices in a structured format. Issuing e-invoices will become mandatory in stages:
- From 2025: All B2B businesses must be able to receive e-invoices
- 2025–2026: Transition phase — all businesses may still send paper invoices or other formats (e.g. PDF) with the recipient's consent
- From 2027: Issuing mandatory for businesses with over €800,000 in prior-year revenue. Smaller businesses (prior-year revenue ≤ €800,000) may continue sending non-e-invoices until end of 2027
- From 2028: Issuing mandatory for all businesses
Exceptions: Small businesses using the Kleinunternehmerregelung (Section 19 UStG) are permanently exempt from the issuing obligation (Section 34a UStDV). Also exempt are small-amount invoices up to €250 gross, invoices to consumers (B2C), and certain tax-exempt transactions under Section 4 No. 8–29 UStG.
Which Formats Are Accepted?
Only formats that comply with the European standard EN 16931 qualify as e-invoices:
- XRechnung (UBL or CII) — the German standard
- ZUGFeRD 2.x — hybrid format with XML embedded in PDF
- Peppol BIS Billing 3.0 — for cross-border invoices
A simple PDF invoice sent by email does not qualify as an e-invoice under the law.
What Does This Mean for Your Business?
1. Ensure You Can Receive E-Invoices
Your business must be able to receive and process structured e-invoices. This means:
- XML files (UBL/CII) must be readable by your systems
- ZUGFeRD PDFs must be machine-processable
- Data must flow into your accounting system
2. Prepare for Issuing
Depending on your prior-year revenue, you will need to issue e-invoices from 2027 or 2028:
- Invoice data must be available in a structured format
- Conversion to XRechnung or ZUGFeRD is required
- Validation against EN 16931 ensures compliance
3. Adapt Your Processes
- Review your existing invoicing workflows
- Train your staff on handling e-invoices
- Test processing with sample invoices
How invapi Can Help
invapi provides an API that covers the entire e-invoicing workflow:
- Digitization: Automatically convert PDF invoices into structured data
- Conversion: Convert JSON to XRechnung, ZUGFeRD, UBL, or CII
- Validation: Check e-invoices against EN 16931 and XRechnung rules
With the free plan, you can get started right away and process 10 invoices per month.
Conclusion
Mandatory e-invoicing is coming — and it affects every business in Germany. Those who adapt their systems early will avoid last-minute stress and ensure compliance. Use the remaining time to transition your processes to e-invoicing.