With the Federal Council’s approval of the Growth Opportunities Act, it was decided: Companies must (be able to) issue and receive electronic invoices from January 1, 2025. To ensure that the switch from paper invoices and the seemingly simpler PDF invoices to the e-invoice format is successful, there are a few aspects to consider.
Regulation according to the law
What has so far been a mere possibility will become mandatory in a few months’ time: invoicing by electronic invoice, the so-called e-invoice. The issuing, transmission, receipt and processing of the invoice in a structured, electronic format are prerequisites for complying with the e-invoice obligation. At the same time, they must comply with EU invoice standard EN 16931 (Directive 2014/55/EU of 16.04.2014).
However, organizations do not have to get rid of paper and other invoices from now on. There is a transition period up to and including December 31, 2026. If the previous year’s turnover was less than 800,000 euros, processing is even possible until the end of 2027. During this period, paper invoices and e-invoices that do not comply with the new format can be exchanged between sender and recipient. However, the invoice recipient must explicitly agree to such a deviation in these cases.
Priority 1: Receipt of e-invoices
From next year, all companies in Germany must at least be able to receive and process electronic invoices in accordance with the new requirements. Small businesses or organizations that only serve private customers (B2C companies) should also check whether the receipt of e-invoices can already be implemented at the turn of the year. This is because suppliers, for example, could switch to the format completely.
However: For invoices that companies send to their end consumers, consent to e-invoicing is still required.
Choice of format
So much for the theory. But what logical steps follow from this? Which format can companies choose in future? The Growth Opportunities Act does not provide a clear answer due to the lack of format regulations. However, the Federal Ministry of Finance (BMF) has commented in its draft on the issuing of invoices in accordance with Section 14 UStG. For example, XRechnung and ZUGFeRD meet the requirements, while pure PDF documents do not.
The XRechnung standard was developed as a purely structured format strictly in accordance with the requirements of the EN 16931 series of standards and is therefore nationally recognized. Thanks to the XML-based data exchange, the content can be processed automatically. XRechnung has also been used for public contracts for several years and has already proven its worth.
In addition to these purely structured e-invoice formats, there are hybrid formats that fulfill all the necessary conditions – above all ZUGFeRD. As a hybrid data format, ZUGFeRD integrates structured invoice data in XML format in a PDF document (PDF/A-3). However, when switching to this format, it should be noted that the EN 16931 standard is only fully complied with from version 2.0.1 onwards.
Electronic invoices in everyday working life
In view of the short time that remains, one or two entrepreneurs may now have beads of sweat forming on their foreheads. However, the switch to receiving, issuing, transmitting and processing e-invoices by 2025 can be done quickly and efficiently – with the right solution.
For some time now, ALVARA | Digital Solutions has been offering value-added service providers Fakturio, a software solution for automated invoicing that also benefits retailers and financial institutions. In addition to support with the invoicing of services rendered and comprehensive reporting, the focus here is on the creation and automatic sending of e-invoices in the common XRechnung and ZUGFeRD formats in order to relieve users in their day-to-day business.
In conjunction with the Pecunia cash center software, this creates further added value for an efficient invoicing process. This is because master data and services rendered can be transferred to Fakturio via Pecunia. This means that the entire process is digital and automated. The risk of services rendered or customer-specific conditions not being taken into account, which is hidden in the manual invoicing process, is now a thing of the past.
Conclusion
The advantages of e-invoices are manifold: they eliminate complicated physical processes, save working time and costs and increase transparency in invoice processing. Companies should therefore see electronic invoices not just as an unwelcome obligation, but as what they are: real everyday helpers.
Would you like to set the course for e-invoicing at an early stage? It’s easy with Fakturio!
