Today, businesses in Germany are creating, sending, and archiving more and more of their invoices electronically, with paper documents and manual processes increasingly making way for digital solutions. Digital invoicing is also coming into sharper focus with the introduction of mandatory electronic invoicing.

In this article, we’ll explore what it means to create invoices online, what legal requirements apply to invoices in Germany, and what information invoices must contain. We’ll also go over the benefits of using software solutions for invoicing and how you can integrate these solutions into your accounting and payment systems.

Key takeaways

• “Creating an invoice online” means capturing invoice details and creating invoices using software or cloud-based systems. These invoices are often also sent electronically.
  
• Not every digital invoice is an electronic invoice (e-invoice), since e-invoices must follow structured data formats.
  
• Legal regulations—such as Section 14 of the German Value-Added Tax (VAT) Act (UStG), Section 147 of the German Fiscal Code (AO), and the Principles for the proper keeping and retention of books, records, and documents in electronic form (GoBD)—establish rules around invoice form, content, and storage.
  
• Software solutions such as Stripe Invoicing can automate invoicing processes and make settlement simpler.
  

What does creating invoices online mean?

“Creating an invoice online” means performing invoicing processes digitally using software or a cloud-based platform. Businesses capture invoice details electronically and then use these details to create digital documents which they send directly to their customers or business partners.

These days, online invoicing is a core component of digital business workflows. Unlike traditional paper invoices, digital invoices are created directly in a business’s invoicing system. Lots of solutions manage recurring tasks, such as assigning invoice numbers, calculating tax, or emailing invoices, automatically. Additionally, they can often sync settlement with accounting and archiving processes. Digital systems help businesses create invoices efficiently and manage their payments in a structured way, especially if they have recurring payments, subscriptions, or international business activities.

Digital invoices vs. e-invoices

Not every invoice created or sent by computer constitutes an “electronic invoice,” or “e-invoice,” in the legal sense. A PDF file emailed to a customer, for instance, would be considered a “digital invoice.” It would not meet the statutory requirements to be considered an “e-invoice.” That’s because an e-invoice contains structured data that can be read and processed by automated systems. The standardised formats used in Germany include XRechnung and Central User Guide of the Forum for Electronic Invoices Germany (ZUGFeRD).

Transition to e-invoicing

Businesses in Germany have been required to send invoices to government bodies in electronic form since the end of November 2020. They have also been required to have the capability to receive e-invoices since 1 January 2025. The obligation to issue e-invoices is currently being phased in. Businesses can continue sending paper invoices or other electronic invoice formats until the end of 2026, subject to certain conditions. However, any digital format other than the legally defined “e-invoice” requires the consent of the recipient.

Smaller businesses with annual turnover of less than €800,000 in 2026 have until the end of 2027 to make the switch. In principle, however, electronic invoicing is set to become the standard from 2028 onward. That means that creating invoices online and processing them digitally will become the norm for businesses in Germany. These rules only apply to a limited extent to invoices issued to end customers and for certain tax-free revenue.

What statutory regulations apply to invoices in Germany?

Businesses in Germany must observe a variety of statutory regulations when creating invoices. The most important of these is Section 14 of the German Value-Added Tax (VAT) Act (UStG). The following also contain relevant regulations on retention and traceability: Section 14b of the UStG, Section 147 of the German Fiscal Code (AO), and the principles for the proper management and storage of books, records, and documents in electronic form (GoBD).

Invoice format

According to Section 14, paragraph 1 of the UStG, an “invoice” is any document used to bill a supply or service, no matter what the document is called. However, the law distinguishes between “electronic invoices” and “other invoices.” An “electronic invoice” must comply with Directive 2014/55/EU and be sent in a structured electronic format. Other electronic formats or paper invoices, on the other hand, are regarded as “other invoices.”

Authenticity, integrity, and readability

According to Section 14, paragraph 3 of the UStG, the authenticity of origin, integrity of content, and readability of an invoice must be guaranteed. “Authenticity of origin” means that the identity of the issuer is established with certainty. “Integrity of content” ensures that details required by law cannot be amended retroactively.

In principle, businesses can decide for themselves which internal controls to use to fulfil these requirements, provided that there is a reliable audit trail between the invoice and the underlying performance. With electronic invoices, authenticity and integrity are considered guaranteed if a qualified electronic signature or electronic data interchange (EDI) is used.

Proper accounting and GoBD

In addition to the requirements under Section 14 of the UStG, businesses must also observe the principles for proper accounting in electronic form when creating invoices (GoBD). The GoBD specify how businesses must collect, process, and store digital business documentation. The most important requirements under the GoBD are that documentation is traceable, auditable, and tamper-proof. As a rule, businesses must retain invoices for eight years. Older transactions might be subject to different retention periods, depending on when they occurred. With e-invoices, the structured part must, as a minimum, be archived such that it can be accessed in its original, untampered form.

What information is required on an invoice?

Regardless of whether they are creating them online or manually, businesses must include the statutory mandatory information on all their invoices. For standard invoices, that includes:

• Full name and address of the company supplying the product or service
  
• Full name and address of the recipient of the product or service
  
• Issue date of the invoice
  
• Date of delivery or other supply (i.e. the performance period)
  
• The tax identification (ID) issued to the seller by the tax office or the VAT ID number issued by the Federal Central Tax Office
  
• A sequential, unique invoice number
  
• Quantity and type of product supplied, or the scope and type of service rendered
  
• Price (net) and total (gross)
  
• Applicable tax rate and the amount of tax due
  

Businesses in Germany that prepare invoices can also include the following optional information:

• The deadline by which the recipient must settle the invoice
  
• Details on any cash discount, including the percentage taken off and the timeframe during which the discount is valid
  
• Details on special settlement terms, such as instalments or progress payments
  
• The seller’s bank details, including international bank account number (IBAN) and bank identifier code (BIC) where applicable
  
• The commercial register entry details, including registry court and registered number
  
• Details on the seller's management or owners
  
• The seller's telephone number, email address, or website in case of queries
  

What are the advantages of using software solutions to create invoices online?

Software solutions for online invoices offer businesses a range of practical and financial advantages in their daily workflow. They do far more than just create invoices—they facilitate the entire process, from invoicing to archiving.

• Time savings and automation
  One of the main advantages is that businesses can automate recurring tasks. For example, modern systems can automatically assign invoice numbers, calculate tax by themselves, and create invoices based on stored customer data or templates. This reduces manual labour significantly, saving time and minimising sources of errors.

• More efficient business processes
  Online invoicing solutions provide for a seamless digital process with no media discontinuities. Invoices can be created, sent, and processed directly in the invoicing system itself. Often, other activities—such as settlement, dunning, and accounting—can be integrated as well to speed up and increase the transparency of a business’s workflows across the board.

• Better oversight and control
  Businesses can get a snapshot of their paid and unpaid invoices anytime. Lots of software solutions come with dashboards or analytics that provide an overview of current payment status, revenue, or outstanding receivables. This makes financial planning easier and improves accounts receivable management.

• Legal certainty and compliance
  Software solutions can also help with compliance. Lots of systems are designed to factor in the requirements of Section 14 of the UStG and the GoBD. They help a business create invoices correctly, ensure transparent archiving, and store auditable documentation where necessary. The legal responsibility, however, remains with the business.

• Work from anywhere
  Since many solutions are cloud-based, invoices can be created and retrieved anytime, anywhere. For mobile working models, international business relationships, or businesses with multiple locations, this is a major plus.

How does online invoicing integrate into accounting systems and payment schemes?

With modern systems, online invoicing can usually be integrated into accounting systems and payment schemes easily using APIs. As a business owner, the aim is to replicate your entire process, from invoicing to posting a payment, as far as possible, eliminating the need for manual intervention.

Using APIs

One of the keys to successful integration is ensuring invoice data is transferred to your accounting systems. As soon as an invoice is created, all the relevant details need to be forwarded in a structured format via APIs and posted to your accounts automatically. This eliminates double entries and reduces errors caused by manual transfers. Accounts can also be updated in real time, giving you an up-to-date overview of your finances.

Automating reconciliation

Payment processes are often integrated directly as well. Invoices can be linked to different payment methods, so that customers can pay the amount due directly online. As soon as payment is made, the status is automatically updated in the system and the outstanding item is marked as settled. This helps you get paid faster and reduces your dunning workload.

Supporting recurring payment models

Integrated systems often also support recurring payment models such as subscriptions. Here, invoices are created automatically at set intervals, with payment processes managed accordingly. This ensures that earnings are plannable and recurring transactions can be processed largely automatically.

How Stripe Invoicing can support your digital invoicing

Stripe Invoicing helps businesses in Germany digitise and automate their entire invoicing and settlement process. It can help your business reduce its accounting workload and cut down on the time it takes to get paid—regardless of whether you’re using single invoices or recurring billing.

Creates and manages invoices automatically

Stripe Invoicing creates, adjusts, and sends invoices online fast. Invoice details can be copied directly from existing customer databases. Central processes, such as status monitoring, payment reminders, and refunds, are also automated, reducing your manual administrative workload significantly.

Can help you get paid faster

With Stripe, businesses in Germany can offer their customers more than 100 payment methods, 135 currencies, and 25 languages. Giving your customers so much choice increases the chances of them paying quickly. Plus, AI-powered dunning tools help you collect on outstanding debts.

Integrates into existing systems

Stripe Invoicing integrates seamlessly into your existing accounting and enterprise resource planning (ERP) systems. Invoice and payment details are automatically synchronised so that they can be processed without any manual interventions, giving you consistent datasets and a single digital process, from invoicing to posting.

FAQs about creating invoices online

Below, we provide answers to the most important questions about creating invoices in Germany.