E-Invoice 2025

What exactly is an E-Invoice?

The E-Invoice, also known as an electronic invoice, is a digital alternative to the traditional paper invoice. It is created, sent, received, and processed in a structured electronic format. This means that the invoice can be read and processed by software programs without any manual steps. Typical formats for e-invoices include XML-based standards such as ZUGFeRD or XRechnung. The use of e-invoices helps optimize processes, reduce errors, and lower administrative costs.

E-Invoice Mandatory 2025

Starting in 2025, e-invoices will be mandatory for companies in Germany. This follows the implementation of EU directives on digital invoicing and the ongoing digitization of financial processes. In the future, companies must ensure that they can issue, receive, and archive e-invoices in a legally compliant format. Those who do not prepare for the transition in time risk delays in invoice processing and possible legal consequences.

How to Create an E-Invoice?

There are various methods and software solutions available for creating an e-invoice. Modern e-invoicing software allows businesses to automatically generate and send invoices in a standardized format. The basic process is as follows:

• Entering Invoice Data: Relevant information (e.g., invoice number, amount, service description) is entered into the system.
• Generating the E-Invoice Format: The software converts the data into the required electronic format, such as XRechnung or ZUGFeRD.
• Digital Signature and Validation: If necessary, the invoice can be digitally signed to ensure authenticity.
• Sending the Invoice: The e-invoice is sent via email or through specialized invoicing platforms to the recipient.
• Archiving: The invoice is electronically stored to comply with legal retention requirements.

There are numerous software providers in the market that support businesses in implementing e-invoicing. Choosing the right solution depends on individual requirements, company size, and existing IT infrastructure.

The E-Invoicing Format

An e-invoice must be in a standardized format to ensure seamless processing by software programs. In Germany, the key formats are:

• XRechnung: An XML-based format specifically developed for exchanging invoices with government authorities.
• ZUGFeRD: A hybrid format that combines structured XML data with a visual PDF representation.

Both formats comply with the e-invoicing requirements of 2025 and enable automated invoice data processing. The choice of format depends on your company’s specific needs and the requirements of your business partners.

Example of an E-Invoice

An e-invoice is a digital invoice issued, transmitted, and received in a structured electronic format. An example of an e-invoice could be an XML file in the ZUGFeRD or XRechnung format, containing all relevant invoice data such as invoice number, invoice date, amount, and VAT.

Sample E-Invoice in ZUGFeRD Format:

<Invoice>
<InvoiceNumber>20240301</InvoiceNumber>
<InvoiceDate>2024-03-06</InvoiceDate>
<Seller>
<Name>Example GmbH</Name>
<VATID>DE123456789</VATID>
</Seller>
<Buyer>
<Name>Sample Company AG</Name>
<VATID>DE987654321</VATID>
</Buyer>
<TotalAmount>1500.00</TotalAmount>
<VAT>19%</VAT>
</Invoice>


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Using an e-invoice helps process invoices more efficiently, reduce errors, and comply with legal requirements for electronic invoicing.

Receiving an E-Invoice

Electronic invoicing is becoming increasingly important, especially for small businesses looking to work more efficiently and save costs. Fortunately, there are now various free solutions available to easily receive and manage e-invoices.

For small businesses and freelancers, the following free tools are available:

• XRechnung-Erstellen.com – A free online service that allows you to quickly and easily create and receive XRechnungen.
• Accountable – A user-friendly platform that enables the free creation and management of digital invoices.

With these solutions, small businesses can receive legally compliant e-invoices without investing in expensive software. This not only simplifies accounting but also ensures smooth transactions with business partners and authorities.

FAQ about E-Invoicing

1. Is an e-invoice the same as a PDF invoice?

No, a simple PDF invoice is not considered a legally compliant e-invoice. An e-invoice must be in a structured electronic format that allows for automated processing (e.g., XRechnung or ZUGFeRD).

2. Which businesses are affected by the e-invoicing requirement?

In general, the e-invoicing requirement applies to all businesses that conduct transactions with other businesses or government authorities. From 2025, many businesses will be required to issue and receive electronic invoices.

3. Are there any exceptions to the e-invoicing requirement?

In some cases, exceptions may apply, such as for certain small businesses or specific types of transactions. The exact regulations should be clarified with a tax advisor or the relevant authorities.

4. How long must an e-invoice be archived?

E-invoices are subject to the same legal retention requirements as paper invoices. In Germany, they must be stored electronically for at least 10 years.

5. Is a digital signature required for e-invoices?

In most cases, a digital signature is not mandatory, as long as the e-invoice format meets legal requirements. However, a signature can enhance security and traceability.

6. What are the advantages of an e-invoice compared to a traditional invoice?

E-invoices offer many benefits, including faster processing, fewer errors, lower printing and mailing costs, as well as improved traceability and archiving.

7. Which software is recommended for creating and processing e-invoices?

There are various e-invoicing software solutions available, including DATEV, Lexware, SAP, sevDesk, and many others. The choice of the right software depends on the specific needs of your business.

The introduction of e-invoicing brings numerous benefits, from process optimization to reducing errors and costs. Businesses should prepare early for the 2025 e-invoicing requirement to ensure a smooth transition. With the right advice and software solution, you can future-proof your invoicing processes.