How to Prepare for Mandatory E-Invoicing in Germany by 2025

‍1. Why is E-Invoicing Becoming Mandatory?

The German tax administration’s primary goal of the legal changes and the introduction of a standardized electronic invoicing format is to combat VAT fraud, increase transparency, and align financial operations with modern digital standards. E-invoicing ensures faster and more reliable processing by utilizing structured formats such as XRechnung and ZUGFeRD 2.2, which are compliant with EN 16931.

2. Key Deadlines  

January 1, 2025:

Businesses must be able to receive and process e-invoices. Having an e-mail address is sufficient at this first stage.

January 1, 2027:

Businesses with a revenue of >EURk 800k must be capable of receiving and sending e-invoices.

January 1, 2028:

Full compliance with structured e-invoicing is required for all German businesses.

3. Preparations for Businesses

To meet the new regulations, businesses should take the following steps:  

• Set up an Invoice Email Address: Establish a dedicated email address for invoiceprocessing (e.g., invoices@yourcompany.com).

• Choose Appropriate Software: Select tools compatible with XML formats like XRechnungor ZUGFeRD. Examples include DATEV, Lexoffice, and sevDesk.  

• Implement Archiving Systems: Ensure GoBD-compliant digital archiving solutions for secure storage and retrieval of invoices.  

• Evaluate Cloud or Local Systems: Determine whether cloud-based solutions (e.g., DATEV Unternehmen online) or locally installed systems (e.g., DATEV Mittelstand) best suit your needs.  

4. Exemptions

E-invoices are not required for:

• Transactions with foreign (i.e. non-German) B2B-clients

• ‍Low-value invoices of up to EUR 250

• ‍Public transport (i.e. tickets)

• ‍VAT-free services acc. to Sec. 4 no. 8-29 UStG

5. Advantages of E-Invoicing

Adopting e-invoicing offers several benefits:  

Efficiency: Automated workflows reduce manual processing time.  

Cost Savings: Less reliance on paper and printing lowers operational expenses.  

Accuracy: Structured data formats minimize the likelihood of human errors.  

6. Conclusion

The shift to mandatory e-invoicing represents a significant step toward digital transformation in business operations. By preparing early, companies can ensure compliance and benefit from the efficiency and transparency e-invoicing brings.

For further guidance or support, contact us to explore tailored solutions for your e-invoicing needs.