E-Invoicing in Germany: What Changes in 2025 and 2027 The German E-Rechnung mandate explained

Germany is rolling out mandatory e-invoicing in phases. Since January 1, 2025, every business must be able to receive electronic invoices. From January 1, 2027, most businesses must also send them.

If you do business in or with Germany, here’s what you need to know.

What’s changing?

The Wachstumschancengesetz (Growth Opportunities Act) introduced mandatory e-invoicing for all B2B transactions between German businesses. Germany uses a phased approach:

Phase 1: Receiving (active since January 1, 2025)

All German businesses must be able to receive and process electronic invoices. This has been in effect for over a year. If a supplier sends you an e-invoice, you cannot refuse it or ask for a PDF instead.

Phase 2: Sending (from January 1, 2027)

Businesses with annual revenue above €800,000 must send e-invoices for B2B transactions. PDF invoices will no longer be sufficient for these businesses.

Phase 3: Full mandate (from January 1, 2028)

All businesses, regardless of size, must send e-invoices for domestic B2B transactions.

The timeline at a glance

Date	What happens
January 1, 2025	All businesses must receive e-invoices ✅ Active
January 1, 2027	Businesses >€800k revenue must send e-invoices
January 1, 2028	All businesses must send e-invoices
July 1, 2030	EU-wide intra-EU B2B e-invoicing (ViDA)

Which formats are accepted?

Germany accepts any e-invoice format that complies with the EN 16931 European standard. In practice, two main formats:

• XRechnung — The German national standard, pure XML. Widely used for B2G (business-to-government) and increasingly for B2B.
• ZUGFeRD 2.x — A hybrid format combining structured XML with a human-readable PDF. The recipient gets both: a PDF they can read and structured data their software can process.

Both formats are compatible with the Peppol network. UBL Buddy supports both XRechnung and ZUGFeRD invoices.

Who’s affected?

All businesses registered in Germany that do domestic B2B transactions:

• Freelancers (Freiberufler) and sole proprietors (Einzelunternehmer)
• Small businesses (Kleinunternehmer) — including those using the Kleinunternehmerregelung
• GmbH, UG, AG, OHG, KG, and other company forms
• German branches of foreign companies

Not affected (yet): B2C transactions and purely international transactions (the EU’s ViDA regulation extends this to intra-EU B2B from 2030).

What do you need to do?

Right now: receive e-invoices

The receiving mandate has been active since January 2025. You should:

1. Have a way to open XML invoices. When a supplier sends you an XRechnung or ZUGFeRD invoice, you need to read it. UBL Buddy lets you open these files with a double-click — on Mac, iPhone, or iPad.

2. Check your accounting software. Make sure it can import e-invoices. Major German packages (DATEV, Lexware, sevDesk, Billomat, FastBill) support or are adding e-invoice import.

3. Don’t refuse e-invoices. You are legally required to accept them from suppliers.

By 2027 (or 2028): send e-invoices

When your sending deadline approaches:

1. Ensure your invoicing software generates e-invoices in XRechnung or ZUGFeRD 2.x format.
2. Consider registering for Peppol. A Peppol ID makes it easier for trading partners to exchange invoices with you.
3. Test with trading partners. Start sending e-invoices before the deadline to work out any issues.

How does Germany compare to other countries?

Country	Approach	Formats
Germany	Phased (2025/2027/2028)	XRechnung, ZUGFeRD, any EN 16931
Belgium	Single date (Jan 2026)	Peppol BIS Billing 3.0 only
France	Phased (Sep 2026/2027)	Factur-X, UBL, CII
Italy	Already mandatory (2019)	FatturaPA (SdI system)

Frequently asked questions

I only receive a few invoices. Do I still need to comply?

Yes. The receiving mandate applies to all B2B businesses, regardless of volume.

Can I still receive PDF invoices?

During the transition period, you may still receive PDFs from businesses that haven’t switched yet. But you cannot refuse an e-invoice if a supplier sends one.

What’s the difference between XRechnung and ZUGFeRD?

XRechnung is pure XML — structured data only. ZUGFeRD combines XML data with a PDF, giving you both human-readable and machine-readable versions in one file. Both comply with EN 16931 and are equally valid.

Do Kleinunternehmer need to comply?

Yes. Even businesses using the Kleinunternehmerregelung must comply. There is no exemption based on business size.

What about invoices to/from other EU countries?

For now, the German mandate only applies to domestic B2B transactions. Cross-border invoices follow each country’s rules. The EU’s ViDA regulation harmonizes this from July 2030.

I received an XML invoice and can’t open it. What do I do?

Download UBL Buddy from the Mac App Store (free). Double-click the XML file, and you’ll see a clean, readable invoice. Works on Mac, iPhone, and iPad.