In recent years, Germany has made significant progress in implementing electronic invoicing, both at the B2G (business-to-government) and B2B (business-to-business) levels. Indeed, the German government has recently confirmed through a Official statement from the BFM (Bundesministerium der Finanzen/German Ministry of Finance) that all companies should be able to receive electronic invoices as of January 2025.
To ensure interoperability, Germany has adopted two formats for your e-Rechnung:
- XRechnung: It is the most commonly used format, based on XML, with the structured data required to bill government entities. Invoices are sent through the platforms specified by each public entity, which vary depending on the state (Länder) or the specific body. There is no obligation to use a single centralized portal, but yes, it complies with the European standard EN16931, which defines mandatory data in electronic invoices.
- Zug Ferd: It is a hybrid format that allows you to send an invoice in PDF format with an attached XML file. In this way, it can be read both by humans and by electronic systems. It's useful for companies that are still transitioning to 100% digital invoicing.
Both formats are designed to meet legal requirements and ensure that the information contained is accurate and easily interpreted by tax authorities.
Implementation dates for electronic invoicing in Germany
Germany has established a progressive timetable for the compulsory nature of B2B electronic invoicing:
- January 1, 2025: All companies must be able to receive electronic invoices.
- January 1, 2027: Mandatory issue for companies with an annual turnover of more than 800,000 euros.
- January 1, 2028: It will be mandatory for all companies, regardless of their size, to issue electronic invoices.
How to send/exchange B2B electronic invoices in Germany?
For the private sector, there is no centralized e-reporting mandate. Companies can agree with each other, but they are not required to report them to a central authority, unlike e-Reporting in France where B2B transactions must be reported to the tax authorities, i.e. to Chorus Pro. However, in Germany you must also comply with current regulations regarding format and storage (10 years), but the exchange and processing is managed directly between the parties involved.
Also, in Germany, unlike in Spain, there is no general obligation to report on the statuses of invoices.
Do I have to adapt my company to bill with suppliers and customers in Germany?
The transition to electronic invoicing in Germany represents a major step towards business digitalization. Meeting standards and adapting to established deadlines is key to staying competitive.
In Brait, we provide advice and have global electronic invoicing solutions, that is, for everyone. We have an expert team Who will do an X-ray of the company to present the best solution, how can it be Invictia, our own connector for SAP which connects with the main PDPs globally, ensuring compliance with the law, interoperability in their appropriate formats, while allowing the billing process to be centralized and automated.
The implementation is carried out in an agile manner, at the same time training the accounts payable team with time and dedication. An all-in-one tool, for a simplified adoption of electronic invoicing.
If you need more information on how to adapt your company to the new regulations, to invoice in Spain or abroad, contact us now!
