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FAQs about the German e-invoicing mandate

To help you and your business prepare for January 1, 2025.

Starting January 1, 2025, Germany will require mandatory e-invoicing for domestic B2B transactions. This shift, introduced through the Growth Opportunities Act, simplifies business processes and fosters digital transformation. Here are some of the most pressing questions to help businesses prepare that the German Federal Ministry of Finance has collected.

Why is mandatory e-invoicing being introduced?

The move promotes the digitization of German businesses. E-invoicing streamlines accounting by eliminating duplicate data entry and reducing errors. Both issuers and recipients can save time and costs by processing structured digital invoices seamlessly.

What qualifies as an e-invoice under the new rules?

Starting January 2025, an e-invoice must:

Be issued in a structured electronic format (e.g., XRechnung or ZUGFeRD).
Allow electronic processing.

PDFs or paper invoices will no longer suffice for B2B transactions. However, transitional rules will apply to ensure businesses can adapt.

Are there any exemptions to mandatory e-invoicing?

E-Invoicing will not be mandatory for:

B2C transactions (sales to private individuals).
Many tax-exempt transactions (e.g., financial services, property leases).
Small cash payments under €250.

Public sector invoicing follows separate rules under the E-Invoicing Ordinance.

What formats are allowed for e-invoicing?

Approved formats include XRechnung and ZUGFeRD (2.0 or higher). Other formats may also be used if they meet the legal requirements for electronic data extraction and processing.

How can businesses prepare?

Start by ensuring your systems can issue and receive compliant e-invoices. Smaller businesses may rely on email-based solutions, while larger entities might integrate advanced EDI systems.