E-Invoicing in Germany 2025: Complete Guide to the New B2B Mandate

Starting 1 January 2025, all businesses in Germany must be able to receive structured electronic invoices (e-invoices) for B2B transactions. This is not optional — it's the law.

This guide covers everything you need to know: what changed, who's affected, the exact deadlines, accepted formats, and how to get compliant.

What Changed? The Wachstumschancengesetz

The Wachstumschancengesetz (Growth Opportunities Act), passed by the Bundesrat on 22 March 2024, amended the German VAT Act (UStG) to make structured electronic invoicing mandatory for all domestic B2B transactions.

Key points:

An e-invoice is NOT a PDF. Under the new law, an e-invoice must be in a structured XML format compliant with the European standard EN 16931.
Accepted formats: XRechnung, ZUGFeRD 2.x (Profile XRechnung or EN 16931), Peppol BIS Billing 3.0
Paper and simple PDF invoices will no longer qualify as proper invoices for B2B transactions (after transition periods end)

Timeline & Deadlines

| Date | What Happens | |------|-------------| | 1 January 2025 | All businesses must be able to receive e-invoices | | 1 January 2027 | Businesses with >€800,000 annual revenue must send e-invoices | | 1 January 2028 | All businesses must send e-invoices (no exceptions) |

Transition Period Details

2025–2026: You can still send invoices as paper or PDF (with recipient consent), but you MUST be able to receive e-invoices
2027: Large businesses (>€800K revenue) must send e-invoices. Smaller businesses get one more year
2028: Full mandate — everyone sends and receives e-invoices

Who Is Affected?

Every business registered for VAT in Germany that issues B2B invoices. This includes:

Sole traders (Einzelunternehmer)
GmbHs and UGs
Freelancers (Freiberufler) who invoice other businesses
Foreign companies with a German VAT registration

Who Is Exempt?

B2C transactions (invoices to private consumers) — not required
Small invoices under €250 — exempt
Tax-exempt services under §4 Nr. 8–29 UStG — exempt
Cross-border transactions — not covered by this specific German mandate (but may fall under EU ViDA rules later)

Accepted E-Invoice Formats

| Format | Type | EN 16931 Compliant | Notes | |--------|------|-------------------|-------| | XRechnung | Pure XML | ✅ Yes | German national standard | | ZUGFeRD 2.x | PDF + XML | ✅ Yes (Profile EN 16931) | Hybrid format — human + machine readable | | Peppol BIS 3.0 | XML via network | ✅ Yes | Requires Peppol Access Point |

Important: ZUGFeRD profiles "Minimum" and "Basic" are NOT compliant with EN 16931 and will not be accepted.

How to Get Compliant: 5 Steps

Step 1: Ensure You Can Receive E-Invoices (by Jan 2025)

At minimum, you need an email inbox that can receive XML files. Most accounting software already handles this.

Step 2: Choose Your E-Invoicing Software

See our Germany software comparison for a detailed breakdown of all major solutions.

Step 3: Update Your Accounting Processes

Map your current invoice workflow. Identify where structured data needs to flow.

Step 4: Test with a Trading Partner

Send and receive test invoices before the deadline.

Step 5: Set Up Compliant Archiving

E-invoices must be archived in their original electronic format for 10 years (GoBD requirement).

Penalties for Non-Compliance

Germany has not announced specific penalties for failing to send e-invoices during the transition period. However:

Invoices that don't meet the legal requirements may not be accepted for VAT deduction by the recipient
This creates strong economic incentive for compliance even without explicit fines

Frequently Asked Questions

Q: Can I still send PDF invoices in 2025? A: Yes, during 2025–2026 you can still send PDFs with recipient consent. But you must be able to receive e-invoices.

Q: Is ZUGFeRD the same as Factur-X? A: Yes — ZUGFeRD 2.x and Factur-X are technically identical standards, maintained jointly by Germany and France.

Q: Do I need special software? A: Most modern accounting tools (sevDesk, Lexware, easybill, etc.) already support or are adding e-invoicing. See our software comparison.

Q: What about invoices from abroad? A: The German B2B mandate only covers domestic transactions. Cross-border invoicing will be addressed by the EU's ViDA initiative.

Last updated: December 2024. We monitor official sources (BMF, KoSIT) and update this guide when regulations change.