Currently, around 40% of German businesses issue their invoices electronically. That’s up from 30% in 2020, and 20% just two years prior in 2018. This upward trend underscores the fact that e-invoices are poised to become the new standard in German commerce sooner rather than later—not least due to upcoming legislation. This article covers current and forthcoming businesses regarding electronic billing, highlights the main differences between structured formats and PDFs, and lists required fields. You can also check out examples of different kinds of e-invoices in practice and a short guide on how to generate your own.

What’s in this article?

• E-invoices in Germany: What are the obligations for businesses?
  
• How are e-invoices different from PDF invoices?
  
• What details must an e-invoice contain?
  
• Example e-invoice: XRechnung
  
• Example e-invoice: ZUGFeRD
  
• Which e-invoice format is right for which business?
  
• How can businesses in Germany generate e-invoices?
  

E-invoices in Germany: What are the obligations for businesses?

Starting in January 2025, all B2B businesses in Germany will be required to be capable of receiving and processing bills in electronic form. The rollout of e-invoicing obligations will take place gradually over the next few years. From 2028, B2B entities must create and transmit e-invoices in line with § 27.38 of the German value-added tax (VAT) Act (UStG). Exemptions apply exclusively to low-value invoices calculated at €250 or less, certain tax-exempt sales, and travel tickets, as outlined in § 34 of the German VAT Implementation Ordinance (UStDV). The new regulation originates from the European Union’s ViDA (VAT in the Digital Age) initiative, which aims to modernize VAT administration and harmonize billing practices across the EU. The country incorporated these provisions into national law through the Growth Opportunities Act.

How are e-invoices different from PDF invoices?

PDF invoices are digitized reproductions of traditional paper documents. While they are digital, they are not structured. They do not contain standardized information fields, meaning that automated bookkeeping or enterprise resource planning (ERP) systems cannot process their content directly. Instead, the data must be retrieved manually or through OCR (optical character recognition) technologies, which are susceptible to errors and provide only limited automation.

E-invoices, on the other hand, are based on XML (Extensible Markup Language), a structured language for representing textual data. All relevant billing details are stored in so-called BT fields (Business Terms), which can be read by machines and therefore imported automatically into digital systems, eliminating the need for manual intervention.

E-invoices align with legal regulations, specifically the EU Directive 2014/55/EU, governing use in public procurement. They must also comply with the requirements of the EU norm EN 16931. Two formats in particular are widely used in Germany: XRechnung and ZUGFeRD. Both follow the legal framework, but differ in structure, application, and target group.

XRechnung

The Coordination Office for IT Standards (KoSIT) developed XRechnung for government use. It relies solely on XML data and excludes any visual representation of the invoice. As a result, companies cannot apply graphic design elements such as logos or colors. The document can only be read by a machine, requiring special software for processing.

ZUGFeRD invoice

The second established format in Germany is ZUGFeRD (Central User Guide of the Forum for Electronic Invoices Germany). Unlike XRechnung, ZUGFeRD is a hybrid approach that combines a classic PDF/A-3 view with an embedded, machine-readable XML file. In practice, it opens like a standard PDF while IT systems can automatically process the integrated structured data.

What details must an e-invoice contain?

According to § 14 of the UStG, an electronic invoice must contain all information that is mandatory on a traditional version. This includes, in particular:

• Full name and address of the company supplying the goods or service
  
• Full name and address of the recipient of the goods or service
  
• A consecutive, unique invoice number
  
• Date of invoice
  
• Date of supply of goods or service
  
• The tax number issued to the supplying company by the tax office or the VAT identification number issued by the Federal Central Tax Office
  
• The quantity and type of goods supplied or the scope and type of service rendered
  
• Net and gross amount
  
• The applicable tax rate and the corresponding amount or, in the case of a tax exemption, a reference to the exemption
  

BT numbers for mandatory information

To create an e-invoice correctly, enter the required fields in the designated BT slots. Below is an overview of the key BT numbers and their corresponding content; items marked with an asterisk (*) are mandatory.

BT numbers for invoice content

Example e-invoice: XRechnung

Download the complete XRechnung in XML format PDF—with structured machine-readable data in the format required for electronic invoicing in Germany.

Example e-invoice: ZUGFeRD

At first glance, the ZUGFeRD invoice appears to be a classic PDF—see the download below. However, embedded in the file is an XML dataset, similar to the approach used by XRechnung.

You will find a sample ZUGFeRD invoice, comprising a PDF document and a machine-readable XML layer for automated processing.

Download an example ZUGFeRD format invoice—as a PDF document with an embedded XML file for structured processing.

Which e-invoice format is right for which business?

ZUGFeRD covers a wide range of scenarios, making it suitable for all types of German businesses across nearly every industry imaginable. It works equally well for transactions with public authorities, B2B billing, and B2C private commerce.

XRechnung, by contrast, is specially designed for dealing with public authorities. It was developed specifically for electronic invoicing to ministries and agencies in the country, so it suits vendors serving those bodies.

How can businesses in Germany generate e-invoices?

To produce and send electronic invoices in XML, businesses need tools that meet the technical requirements and efficiently support their existing workflows.

Certified Stripe Billing app partner solutions can generate formats such as XRechnung, validate output, and send them directly to public or private recipients. Billing also automates recurring processes, reduces manual tasks, and provides comprehensive reporting and management tools in the Dashboard.

E-invoices can be created in just a few steps using appropriate software:

• Open XML template
  
• Fill in BT fields
  
• Check input data
  
• Validate XML file (e.g., with an XML validator)
  
• Save and cascade XML file
  

It’s important to use the right tools to stay compliant and integrate e-invoicing directly into digital billing flows.