Since 1 January 2025, all businesses in Germany must be able to receive electronic invoices in a structured, machine-readable format (E-Rechnung). From 2027 and 2028, issuing paper and plain PDF invoices between domestic businesses is being phased out.

Why a normal PDF is no longer an E-Rechnung

Under the rules introduced by the Growth Opportunities Act (Wachstumschancengesetz), an electronic invoice is only a document created, transmitted and received in a structured electronic format that complies with the European standard EN 16931. A plain PDF sent by email counts as an “other invoice” (sonstige Rechnung) and is only permitted during the transition period.

The key formats: pure XML (XRechnung) and hybrid ZUGFeRD

There are two main standards in Germany: XRechnung (a pure XML file, mandatory for invoices to public authorities) and ZUGFeRD (a hybrid PDF/A-3 format that combines a human-readable view with an embedded XML layer for automatic processing). For B2B, ZUGFeRD 2.x or XRechnung are both practical; for ZUGFeRD, the profiles from BASIC upwards meet the requirements, while MINIMUM and BASIC WL do not.

The 2025–2028 transition timetable

In 2025 and 2026, paper and PDF invoices are still allowed (PDF with the recipient's consent). From 1 January 2027, businesses with turnover of more than €800,000 in the previous year must issue e-invoices; others may use the old formats for one more year. From 1 January 2028, the obligation applies to everyone; existing EDI procedures remain permitted only if the data can be extracted in line with EN 16931. Invoices up to €250 and small businesses under Section 19 UStG are exempt from the obligation to issue e-invoices.

How to prepare your IT and accounting software

Make sure your accounting system (sevdesk, Lexware Office, DATEV, SAP) has been updated to generate and validate XML formats. It is also advisable to set up a dedicated mailbox for incoming invoices (such as invoice@domain.de) and a GoBD-compliant archive that stores files unalterably for eight to ten years.

What to check

  • Check that your ERP or accounting software can generate ZUGFeRD or XRechnung.
  • Set up a dedicated channel for receiving e-invoices with automatic validation.
  • Set up a legally compliant archive for long-term storage of the structured XML files.
  • Tell your key business partners that you are ready to switch to e-invoicing.

Example situation

An agency updated its cloud invoicing system and enabled hybrid ZUGFeRD invoices, allowing corporate clients to import invoice items automatically without manual entry.

Next step

E-invoicing affects every business registered in Germany; setting up your software in good time avoids delayed payments from corporate partners.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.