Starting January 1, 2025, Germany will introduce mandatory e-invoicing for B2B transactions. This new regulation aims to standardize invoicing, drive digital transformation, and fight tax fraud. Here’s what you need to know about the e-invoicing requirement, key deadlines, and how to prepare.
What is an E-Invoice and Why is it Being Introduced in Germany?
An e-invoice is a structured, machine-readable invoice format such as XRechnung or ZUGFeRD. Traditional PDF or paper invoices do not meet the criteria as they are not compliant with European standards. This change is part of the Growth Opportunities Act and the EU’s “VAT in the Digital Age (ViDA)” initiative to streamline processes and reduce administrative burdens.
Key Deadlines
Receiving E-Invoices (starting January 1, 2025):
Businesses must be capable of receiving and processing e-invoices. No consent is required from the recipient as formats are standardized. This requirement is solely related to invoice reception and does not involve our PMS solution.
Issuing E-Invoices:
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- 2025–2026: Businesses may continue sending invoices in PDF or paper formats if the recipient consents.
- Until the end of 2027: Businesses with an annual revenue of up to € 800,000 can use “alternative” invoice formats (PDF or paper).
- From 2028: E-invoices will be mandatory for all domestic B2B transactions.
Are There Exceptions?
E-invoicing is not required for:
- VAT-exempt transactions (e.g., as defined in § 4 Nr. 8 to 29 UStG),
- Small invoices (up to € 250),
- Tickets (e.g., for transportation).
Our Solution: Ready for the Future
While the requirement to receive e-invoices starting in 2025 is independent of our PMS, we are fully prepared to support e-invoice issuance. By mid-2025, our PMS solution will fully comply with all legal requirements untill 2028, ensuring you can issue e-invoices seamlessly and without disruptions.
What Are the Benefits?
E-invoicing offers several advantages:
- Faster processing,
- Reduced errors,
- Automated bookkeeping,
- Greater transparency and compliance.
How Can You Prepare?
To get ready, businesses should:
- Update accounting and ERP systems,
- Implement processes to receive and issue e-invoices,
- Train staff to handle the new systems.
How Clock PMS+ Support You
Our solutions already support XRechnung and ZUGFeRD formats. Additional adjustments required for 2026 are currently under development. We’re committed to providing a smooth transition and ensuring that your invoicing processes are compliant with new regulations. If you have any questions, our support team is here to help.
You can also find more information on the website: https://en.e-rechnung-bund.de/
The e-invoicing mandate might seem challenging initially but offers significant long-term benefits in efficiency and transparency. Use the time to future-proof your systems and processes. We’re here to support you every step of the way.
