German E-Invoicing (E-Rechnung)

German E-Invoicing (E-Rechnung)

Last updated: 2026-02-26 | Sources: BMF — E-Rechnungspflicht, §14 UStG

Current Status

Germany has introduced a phased e-invoicing mandate (E-Rechnungspflicht) for domestic B2B transactions, implemented through amendments to §14 UStG as part of the Wachstumschancengesetz (Growth Opportunities Act).

Timeline

Date Requirement
January 1, 2025 All businesses must be able to receive e-invoices in structured format
January 1, 2027 Businesses with prior-year turnover > €800,000 must send e-invoices
January 1, 2028 All businesses must send e-invoices for domestic B2B transactions

What Qualifies as an E-Rechnung

An E-Rechnung (electronic invoice) in the German context must be a structured electronic format compliant with EN 16931. Accepted formats:

  • XRechnung — the German CIUS (Core Invoice Usage Specification) of EN 16931, using UBL 2.1 or UN/CEFACT CII syntax
  • ZUGFeRD 2.x (Zentraler User Guide des Forums elektronische Rechnung Deutschland) — a hybrid format embedding a structured XML (Cross-Industry Invoice) within a PDF/A-3. Only ZUGFeRD profiles "EN 16931" (formerly "Comfort") and above qualify
  • Any other format conforming to EN 16931

Important: A plain PDF is not an E-Rechnung. A PDF is considered "sonstige Rechnung" (other invoice) and will no longer be accepted for domestic B2B after the transition periods.

Transition Period (2025-2027)

During the transition period:

  • Receiving: All businesses must accept structured e-invoices from January 1, 2025. This means having a system (even just an email inbox) capable of receiving XML/ZUGFeRD files
  • Sending: Businesses may continue sending PDF invoices until their size-based deadline
  • Businesses with turnover ≤ €800,000 may send PDF invoices through December 31, 2027
  • EDI procedures: Existing EDI (Electronic Data Interchange) systems may continue through December 31, 2027, even if not EN 16931-compliant

Exemptions

The following are exempt from the E-Rechnung requirement:

  • Kleinbetragsrechnungen (small invoices up to €250 gross)
  • Fahrausweise (travel tickets/transportation documents)
  • B2C transactions
  • Cross-border transactions (though EU-level ViDA requirements may apply later)
  • Tax-exempt supplies under §4 Nr. 8-29 UStG (e.g., medical services, insurance, financial services)

Kleinunternehmer and E-Rechnung

Kleinunternehmer (small businesses under §19 UStG) must be able to receive e-invoices from January 1, 2025, like all other businesses. For sending, they are subject to the same timeline:

  • From January 1, 2028, Kleinunternehmer must also send e-invoices for B2B transactions
  • Their e-invoices will show €0.00 VAT with the §19 UStG exemption note

Technical Requirements

  • E-invoices must be transmitted electronically (email with XML attachment is acceptable)
  • No specific transmission channel is mandated (Peppol is not required, but may be used)
  • The structured data must be machine-readable and processable without manual intervention
  • Businesses must ensure the authenticity of origin, integrity of content, and legibility of the invoice

Practical Impact for Muckle Users

  • German users creating invoices for domestic B2B customers need to be aware of the send deadline for their size bracket
  • PDF download remains valid for sending during the transition period
  • Future: Muckle will offer XRechnung/ZUGFeRD export for German users who need to send structured e-invoices

Recent Updates

  • 2025-11-08: EU Council adopted the ViDA (VAT in the Digital Age) package, which will layer EU-wide digital reporting requirements on top of national e-invoicing mandates.
  • 2025-01-01: E-Rechnung receiving obligation went live for all German businesses.
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