Electronic invoicing in Germany: what your company needs to know

Why Germany is switching to electronic invoicing

Germany aligns itself with european regulations for digitalizing transactions . This passage is intended to reinforce the transparence fiscale and simplify trade exchange . Many European countries have already adopted these systems to improve the effectiveness of tax audits and limit accounting errors .

Why has Germany fallen behind other European countries?

Germany's federal structure has curbed standardization rules. Each Land has decided on its own requirements for invoicing public administrations (B2G).

However, the European directive 2014/55/EU requires harmonization. Germany is following suit with a progressive plan. Unlike France and Italy, which have centralized their processes, Germany has left the regional states free to adopt their own solutions This has led to discrepancies in the implementation of electronic invoicing obligations.

Milestones in the transition timetable

• January 1, 2025 companies must be able to receive electronic invoices and integrate them into their accounting systems .

• January 1, 2027 companies whose sales in excess of 800,000 euros must issue electronic invoices for all their transactions B2B .

• January 1, 2028 : all companies must issue and receive electronic invoices regardless of sales.

The aim is to enable gradual adoption, giving companies time to modernize their accounting management systems.

How can we prepare for the generalized obligation in 2028?

Companies must :

• Adapt their billing software

• Train their teams

• Test new formats before the deadline to avoid administrative errors and delays.

The first step is therefore to invest in management solutions compatible with new requirements and ensure rigorous monitoring of the transition.

You can carry out audits internes to ensure that current systems already meet some of the expected standards.

Who is affected by electronic invoicing in Germany?

All companies operating in Germany Both domestic and foreign companies must comply with the new e-invoicing rules.

This applies to structures of all sizes, from large companies to the self-employed, as well as foreign companies with customers in Germany.

Is your company subject to the new rules?

All companies billing customers in Germany must comply with these regulations. .

B2G (Business to Government) transactions are already covered, with B2B transactions to follow.

Even small businesses will have to adapt their processes and use compatible software.

Specific obligations for transactions with the State (B2G)

Since April 2020, public administration suppliers have had to send their invoices in XInvoice .

Visit federal administrations now require a structured format and standardized to simplify payments and avoid errors in public expenditure management.

How to adapt to B2B requirements

Companies must ensure that their accounting systems can issue and receive compliant invoices to new standards.

What formats should I use to send electronic invoices?

Germany imposes specific formats to ensure seamless integration into accounting systems and compatibility with European standards.

XRechnung, the mandatory format for public administrations

XRechnung est un format XML which ensures automated reading and processing by public administrations.

Its adoption speeds up invoice processing and reduces the risk of errors associated with manual data entry.

ZUGFeRD and Factur-X for wider compatibility

These hybrid formats integrate a XML file in a PDF . They are human-readable and easy to integrate into billing systems.

They offer a solution flexible for companies wishing to maintain a legible presentation while complying with digitalization requirements.

Check that your invoices comply with European standard EN16931

La EN16931 standards guarantees the interoperability of invoices at European level. It defines the minimum information that an electronic invoice must contain to comply with legal requirements.

How to set up a compliant billing system

Companies must adapt their infrastructure to comply with the new obligations.

Choosing the right solution for generating and sending electronic invoices

The use of a compatible billing software is the first step in avoiding administrative rejection.

Solutions like SAP, Datev or Edicom automate the generation and dispatch of invoices in the required formats.

Respect document archiving and retention rules

Invoices must be kept for 10 years in a secure, accessible format. The implementation of a compliant electronic archiving system is essential to meet the requirements of tax audits.

Secure your exchanges with electronic signatures

Although not mandatory, the electronic signature reinforces authenticity documents and prevents fraud. It ensures transaction integrity and speeds up payment validation.

What are the risks of non-compliance?

Failure to comply can result in financial penalties and administrative complications.

Fines and penalties

Companies that fail to comply with the regulations risk fines. financial penalties of up to 100,000 euros depending on the seriousness of the offence.

Tax authorities may also apply additional penalties in the event of repeated or prolonged non-compliance with obligations.

VAT errors

Invoices that do not comply with the regulations may result in rejection of VAT deduction by the German tax authorities . This can lead to significant financial losses for the company concerned.

Administrative bottlenecks and accounting complications

Lack of compliant electronic invoicing can lead to delays in payment, and costly complications during tax audits .

Authorities may require additional supporting documents, adding to the administrative burden and delaying transaction validation.

In addition, non-compliant invoices may be refused by its partners .

Why is electronic invoicing an opportunity for your company?

Over and above legal obligations, electronic invoicing offers numerous advantages, notably in terms of productivity, security and reduced accounting errors.

Automate invoice management and boost productivity

A study by PwC reveals that electronic invoicing reduces invoice processing time by 60%. on average, saving companies thousands of working hours every year.

By automating invoice creation and dispatch, accounting teams can focus on higher value-added tasks .

Integrating an electronic invoicing system reduces the time spent on administrative management and eliminates repetitive tasks. Companies can thus optimize their resources and improve accounting efficiency.

Secure transactions and simplify payment tracking

Thanks to the digital traceability companies can track payments in real time and reduce the risk of litigation or billing errors.

According to a study by the European Electronic Billing Association, 80 % of companies that have adopted these systems have seen a significant improvement in their payment management .

Reduce fraud and ensure tax compliance

Standardized formats and automated controls limit tax fraud and facilitate audits.

According to a survey conducted by Deloitte the electronic invoicing reduces VAT fraud by 30%. by enabling detailed tracking of transactions and eliminating billing inconsistencies.

Standardized formats and automated controls limit tax fraud and facilitate audits.

Heropay helps you switch to electronic invoicing

With Germany imposing widespread electronic invoicing by 2028 As a result, companies need to adapt quickly to new tax and technical obligations.

Whether you're a French SME exporting to Germany or a German company based in Berlin or Munich, Heropay simplifies your transition.

• From June 2025 you can issue electronic invoices in XRechnung, ZUGFeRD or Factur-X format directly from your Heropay account, in full compliance with European and German requirements (EN16931 standard).

• From summer 2025 you can also receive and manage electronic invoices from your German suppliers via Heropay, with easy integration into your accounting processes.

• From September 2025 Hero offers you financing solutions for your electronic invoices to optimize your cash flow, even in cross-border B2B transactions.

• Et end 2025 Heropay will be connected to a PDP partner to guarantee compliance and the sending of tax data to the German tax authorities, while preparing for its own PDP status in 2026.

Germany gradually introduces electronic invoicing with a generalized obligation in 2028. Adopting this reform now will help you avoid penalties and improve your company's efficiency. By anticipating these changes, your organization will benefit from improved financial management and simplified administrative exchanges.