ZUGFeRD vs XRechnung: Which Format Should German Businesses Choose for B2B? (2026 Guide)
Both ZUGFeRD 2.3 and XRechnung 3.0 are valid for German B2B e-invoicing from 2025 onward — but they work very differently. This guide explains the real differences, which one your customers will prefer, and when you genuinely need both.
Germany's e-invoicing mandate gives businesses a choice that most other EU countries do not: ZUGFeRD or XRechnung (or both). Both formats are EN 16931 compliant. Both satisfy the statutory requirements. But the practical differences are significant.
The Core Difference in One Line
ZUGFeRD = a PDF file with an embedded XML invoice. It looks normal to humans, is machine-readable by software.
XRechnung = pure XML only. No visual component. Designed exclusively for machine processing.
What ZUGFeRD 2.3 Actually Is
ZUGFeRD (Zentraler User Guide des Forums elektronische Rechnung Deutschland) is a hybrid document standard. The current version is ZUGFeRD 2.3, released in June 2023 by FeRD (Forum elektronische Rechnung Deutschland).
A ZUGFeRD invoice is a PDF/A-3 file that embeds a structured XML invoice (based on UN/CEFACT CII — Cross Industry Invoice) within the PDF container. When a recipient's accounting software opens the file, it reads the XML directly — no OCR, no manual entry.
ZUGFeRD profiles (from least to most structured):
| Profile | Use case | B2G accepted? |
| MINIMUM | Archiving only; not a full invoice | No |
| BASIC WL | Line-item invoice, no line totals | Limited |
| BASIC | Full structured invoice | Sometimes |
| EN 16931 | EN 16931 compliant, all mandatory fields | Yes |
| EXTENDED | Adds German-specific extensions | Yes |
| XRECHNUNG | ZUGFeRD envelope with XRechnung-level data | Yes |
For B2B use, the EN 16931 or EXTENDED profile is recommended. For B2G (government), use the XRECHNUNG profile — it embeds XRechnung-conformant data inside the familiar PDF wrapper.
What XRechnung 3.0 Actually Is
XRechnung is a purely machine-readable XML invoice format, developed by KoSIT (Koordinierungsstelle für IT-Standards) on behalf of the German federal government. The current version is XRechnung 3.0 (released November 2023).
XRechnung supports two XML syntaxes:
- UBL 2.1 (OASIS Universal Business Language)
- CII (UN/CEFACT Cross Industry Invoice)
Both syntaxes produce legally equivalent invoices. Which one to use depends on what your recipient's system supports — most German government portals accept both, but the PEPPOL BIS 3.0 profile uses UBL, which is worth knowing for cross-border routing.
XRechnung is mandatory for invoices to:
- German federal government agencies (Bundesbehörden) — since November 2020
- Most German state (Länder) government agencies — since 2020–2022 (varies by state)
- Public sector contractors as specified in contracts
Side-by-Side Comparison
| ZUGFeRD 2.3 | XRechnung 3.0 | |
| Visual component | ✅ PDF readable by humans | ❌ XML only — no visual |
| Machine readable | ✅ Embedded XML | ✅ Pure XML |
| Send via email | ✅ Normal PDF attachment | ⚠️ Unusual — recipients may query |
| B2B mandate (2027+) | ✅ Valid | ✅ Valid |
| B2G (federal/state gov) | ⚠️ XRECHNUNG profile required | ✅ Standard format |
| EN 16931 compliant | ✅ (EN 16931 profile+) | ✅ |
| Human fallback | ✅ Always visible as PDF | ❌ None |
| Peppol network delivery | ⚠️ Via ZUGFeRD profile | ✅ Native |
Which One Should You Choose?
Choose ZUGFeRD if:
- You send invoices via email — ZUGFeRD works as a normal PDF attachment. Recipients who do not have structured e-invoice software can still read it as a PDF. Recipients who do have compatible software get automated data extraction.
- Your customers are SMEs — Many German SMEs use software that reads ZUGFeRD embedded XML but would not know what to do with a standalone XRechnung file in their inbox.
- You want a single document that works everywhere — ZUGFeRD invoices are valid for B2B, can be accepted by B2G portals (at XRECHNUNG profile), and will be valid for the 2027 and 2028 mandates.
- You use invoice generation software that natively produces ZUGFeRD (sevDesk, lexoffice, easybill, FastBill all support ZUGFeRD 2.3 natively).
Choose XRechnung if:
- You invoice German government agencies — XRechnung is the primary standard for federal and most state government portals.
- Your customers have EDI systems — Large companies with SAP, Oracle, or Microsoft Dynamics often prefer pure XML over hybrid PDF/XML documents.
- You are building API-based invoicing — For programmatic invoice generation and submission, pure XRechnung XML is easier to work with than generating PDF/A-3 files.
- You route via Peppol — Peppol BIS 3.0 is built on UBL, the same syntax as XRechnung UBL. If you have a Peppol access point, XRechnung UBL is the natural choice.
Use Both When:
- You have a mix of government and private business customers
- Your software generates ZUGFeRD but a specific customer's procurement system requires pure XRechnung
- You participate in public tenders AND send invoices to private companies
Most modern German e-invoicing software (DATEV, weclapp, Scopevisio, SAP) will generate both formats from the same invoice data. Choosing your primary format does not prevent you from generating the other.
The 2027 and 2028 Mandates
From January 1, 2027: German businesses with previous-year turnover exceeding €800,000 must issue structured e-invoices (ZUGFeRD or XRechnung) for all domestic B2B transactions.
From January 1, 2028: All German businesses (regardless of turnover) must issue structured e-invoices for domestic B2B transactions.
Both ZUGFeRD (at EN 16931 or EXTENDED profile) and XRechnung satisfy these mandates. The BMF (Bundesministerium der Finanzen) confirmed in its official guidance that both formats are equally valid.
Source
BMF official e-invoicing guidance: bundesfinanzministerium.de
FeRD ZUGFeRD 2.3 specification: ferd-net.de
KoSIT XRechnung 3.0 specification: xeinkauf.de
