Mandatory E-Invoicing from 2025: What Businesses Need to Know

As of January 1, 2025, electronic invoicing (e-invoicing) will become mandatory for businesses in Germany.
This new regulation applies to all B2B transactions between taxable entities and aims to make the exchange of invoices more efficient and transparent.But what does this actually mean in practice?

What is an e-invoice?

An e-invoice is an invoice issued, transmitted, and received in a structured, machine-readable format. Formats such as PDF or paper are not sufficient, as they cannot be directly processed by accounting and ERP systems. Instead, companies will need to switch to formats like ZUGFeRD or XRechnung.

Who is affected by the e-invoicing obligation?

The e-invoicing obligation applies from 2025 to all taxable businesses conducting transactions with other businesses in Germany. Smaller companies and freelancers are not exempt from this requirement.

Advantages of e-invoicing

• Efficiency: Invoices can be processed and paid more quickly since no manual data entry is required.

• Cost savings: Eliminating paper, printing, and postage costs leads to significant savings.

• Legal certainty: E-invoices reduce the risk of errors and fraud attempts, as the invoice exchange is transparently documented.

Exceptions to the e-invoicing obligation

Certain invoices, such as small-value invoices under €250 or transportation tickets, are exempt from the e-invoicing obligation and can still be sent in paper form or as a PDF.

Conclusion

The transition to e-invoicing under the Growth Opportunities Act represents a significant change that requires companies to digitalize their invoicing processes. We recommend that you familiarize yourself with the new requirements early on and adapt your systems accordingly to meet deadlines, comply with legal obligations, and benefit from the advantages of digitalization.

If you need support with the transition, we are happy to assist you with expert advice.