From 2025, something fundamental will change for companies in Germany: E-invoicing will become mandatory. Sounds like bureaucracy at first – but it’s much more than that. It offers companies the opportunity to make processes more efficient, minimize errors and even save costs. Companies and employees can now benefit enormously from digital accounting.

But for now, companies face a challenge: What exactly does “e-invoice” actually mean? Is a PDF by e-mail sufficient? Which formats are permitted? What deadlines apply? And: How can existing processes be converted so that the changeover does not end in chaos?

The following blog article takes a closer look at these questions and provides an overview of what e-invoices are all about. Companies that get to grips with this can keep up with the new legislation at an early stage and make processes more automated.

What is an e-bill?

First of all, we need to define what an e-invoice is. It describes a form of invoice as an electronic document. This simplifies processes and reduces the workload for employees. Systems can read them in directly, check them and then process them further.

There are two formats for this that are approved in Germany:

• XRechnung: This is based on a standardized XML data model and can be used primarily by public authorities and larger companies.
• ZUGFeRD version 2.x: This is also based on a standardized XML data model. However, it also contains a visual PDF representation, which enables companies to find a compromise between man and machine.

E-invoices play a central role in the public sector in particular and are already mandatory here. However, the fact that this change significantly improves efficiency, transparency and automation in the invoicing process means that companies in any industry can benefit from it.

Legal basics that companies need to know:

The introduction of e-invoicing in Germany is only being introduced gradually in order to give all companies the chance to keep up with the change. It also aims to make companies’ invoices more efficient and forgery-proof. This changeover has a clear timetable that companies must adhere to:

• From January 1, 2025, companies will be obliged to use electronic invoices. Accordingly, companies must also adapt their processes and systems.
• There is a transitional period for issuing e-invoices. Traditional formats such as PDF may continue to be used until the end of 2026, provided the invoice recipient agrees.
• From January 1, 2027, this approval requirement will no longer apply – companies will then have to issue at least some e-invoices.
• From January 1, 2028 at the latest, the obligation to issue invoices electronically in the B2B sector will apply across the board.

There are exceptions for small businesses and certain tax-free transactions – e.g. in the healthcare sector. Nevertheless, if you want to be prepared, you should familiarize yourself with the requirements early on and actively plan the changeover. Because the countdown is running – and if you are late, you risk additional work and unnecessary risks.

Technical requirements for companies

In order for e-invoices to be created, transmitted and received in a legally compliant manner, certain EU requirements must be met in order to present structured data formats. Only in this way can invoice information be processed automatically – without manual post-processing.

Two formats are permitted in Germany: XRechnung and ZUGFeRD 2.x and various technical requirements must be observed for these:

• Compatible software solutions are needed for both formats. Traditional accounting programs are often no longer sufficient – specialized e-invoicing platforms or ERP systems with corresponding functionality are required.
• Important: The receipt of invoices must also be technically supported, for example by a central inbox for structured formats or via interfaces for further processing.
• So if you want to successfully make the switch to e-invoices, you should check at an early stage whether your own IT landscape is ready – and upgrade if necessary. Because without the right technology, the digital invoice remains pure theory.

Advantages of the e-bill

The introduction of e-invoices offers companies added value in many respects:

• Processing can thus be automated. E-invoices can be imported, checked and posted directly into the accounting systems, saving time and minimizing sources of error.
• Costs can also be noticeably reduced: no paper, no printing, no postage. And archiving costs are also reduced, as digital invoices can be stored electronically in compliance with the law and quickly retrieved if required.
• Transparency is also promoted. Each invoice contains structured data that can be clearly assigned and evaluated – this makes controlling easier and improves the overview of payment transactions.
• Finally, this change represents a step towards sustainable digitalization. Reducing the use of paper also protects the environment.

Challenges and recommendations for action

However, the switch to e-billing not only brings advantages, but also some challenges.

Challenges and recommendations for action

• Existing ERP or accounting systems must be able to use the various e-invoice formats correctly and integrate them technically.
• Employees must be trained to be able to use these applications. Only those who understand why something is changing will support it.
• The transition can be carried out step by step to enable smooth integration. This involves analyzing current processes.
• A suitable software solution can then be selected in order to integrate it seamlessly into systems.
• And last but not least: communicate with business partners. Inform them about your changeover at an early stage – and clarify whether adjustments are also necessary on their side.

With a clear roadmap, the right tools and a motivated team, the obligation quickly becomes an opportunity for optimization.

Conclusion: What do e-invoices mean for companies?

E-billing is more than just another digitization hype – it is here to stay. And not for purely regulatory reasons, but because it makes processes smarter, faster and less error-prone. Of course, the changeover means effort. Systems have to be adapted, employees have to be trained and processes have to be rethought. But this is also where the opportunity lies. Because anyone who actively engages with e-billing now is investing in the future of their company.

The important thing to remember is that simply going digital rarely works. It requires a clear roadmap, good communication within the team and reliable partners when it comes to software and integration. Those who approach the changeover strategically can not only meet legal requirements, but also take their entire invoice processing to a new level – automated, transparent and resource-saving.

Companies should therefore lose no time, because the countdown to the legal obligation is running, and the sooner you start, the more relaxed the transition will be. E-billing is not a burden, but an invitation to optimize. Companies should accept it, not because they have to – but because they want to remain competitive tomorrow. And digitally optimally positioned.