E-Invoicing in Germany 2025: Complete Guide to the New B2B Mandate
Everything you need to know about Germany's mandatory B2B e-invoicing starting January 2025. Deadlines, formats, exemptions, and step-by-step compliance guide.
E-Invoicing in Germany 2025: Complete Guide to the New B2B Mandate
Since 1 January 2025, every business in Germany must be able to receive structured electronic invoices for B2B transactions. Not "should", not "it would be nice" — it's a legal requirement.
I've worked on e-invoicing integrations across multiple industries, and honestly, the confusion around this topic is real. So let's cut through the noise and cover exactly what changed, who it affects, and what you actually need to do.
What Changed? The Wachstumschancengesetz
The Wachstumschancengesetz (Growth Opportunities Act) was passed by the Bundesrat on 22 March 2024. It amended the VAT Act (UStG) to make structured electronic invoicing mandatory for all domestic B2B transactions.
The headline things to know:
- An e-invoice is NOT a PDF. Seriously, this is the one thing that trips everyone up. A PDF is essentially a picture of an invoice. The new law requires a structured XML format compliant with the European standard EN 16931 — something a machine can actually parse, not just display.
- Accepted formats: XRechnung, ZUGFeRD 2.x (Profile XRechnung or EN 16931), Peppol BIS Billing 3.0
- Paper and plain PDFs are on borrowed time for B2B — they'll stop being valid after the transition periods expire
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 |
What Does the Transition Period Actually Mean?
- 2025–2026: You can still send paper or PDF invoices (with the recipient's consent), but you absolutely must be able to receive structured e-invoices. No excuses.
- 2027: If your annual revenue tops €800K, you start sending e-invoices too. Smaller businesses get one more year to catch up.
- 2028: Full mandate kicks in. Everyone sends, everyone receives structured e-invoices.
Who Is Affected?
Basically: every VAT-registered business in Germany doing B2B invoicing. That includes:
- Sole traders (Einzelunternehmer)
- GmbHs and UGs
- Freelancers (Freiberufler) billing other businesses
- Foreign companies with a German VAT number
Who Gets a Pass?
- B2C transactions (invoices to private consumers) — not in scope
- Invoices under €250 — exempt from the e-invoice requirement
- Tax-exempt services under §4 Nr. 8–29 UStG — also exempt
- Cross-border transactions — not covered by this specific mandate (though the EU's ViDA initiative will eventually address those)
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 — readable by humans and machines |
| Peppol BIS 3.0 | XML via network | ✅ Yes | Needs a Peppol Access Point provider |
Watch out: ZUGFeRD profiles "Minimum" and "Basic" do NOT meet EN 16931 and won't be accepted. More on this in our XRechnung vs ZUGFeRD comparison.
How to Get Compliant: 5 Steps
Step 1: Make Sure You Can Receive E-Invoices (Jan 2025 — this one's overdue)
At minimum you need an inbox that accepts XML files and software that can do something useful with them. Most modern accounting tools already handle this — just check the settings.
Step 2: Pick Your E-Invoicing Software
If you haven't already, now's the time. See our Germany software comparison for a breakdown of what's actually good versus what just claims to be.
Step 3: Update How You Handle Invoices Internally
Map out your current invoice flow. Where does data need to move? Who touches it? Structured invoices mean less manual entry — but someone needs to set that up first.
Step 4: Test with a Real Partner
Don't go live blind. Send a test invoice to a willing partner, have them confirm it processed correctly, and fix whatever breaks. You want to find problems now, not after a real invoice bounces.
Step 5: Archive Properly
E-invoices must be kept in their original electronic format for 10 years (GoBD requirement). Printing a ZUGFeRD to PDF and deleting the XML doesn't count — that's a trap.
Penalties for Non-Compliance
Germany hasn't published exact fines for failing to send e-invoices during the transition period. But here's the practical risk: invoices that don't meet legal requirements may not be accepted for VAT deduction by the recipient. That means your customers might push back, and rightfully so. The financial incentive to comply is real 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 the recipient's consent. But you must already be able to receive structured e-invoices.
Q: Is ZUGFeRD the same as Factur-X? A: Technically, yes. ZUGFeRD 2.x and Factur-X are the same standard, just maintained jointly by Germany and France under different names. Good news if you're doing cross-border invoicing with French companies.
Q: Do I need special software? A: Most modern accounting tools — sevDesk, Lexware, easybill and others — already support it or are actively adding it. Check our software comparison to see who's actually ready.
Q: What about invoices from abroad? A: The German B2B mandate only covers domestic transactions for now. Cross-border e-invoicing will eventually fall under the EU's ViDA initiative, but that's a separate timeline.
Last updated: December 2024. I keep an eye on official sources (BMF, KoSIT) and update this when things change.