In Germany, e-invoicing is becoming increasingly important, especially for business-to-business (B2B) transactions. An e-invoice, or electronic invoice, is an invoice that is created, sent, and received digitally.

New e-invoicing regulations in the B2B sector took effect in Germany on January 1, 2025. The so-called Growth Opportunities Act, which will be phased in gradually, makes e-invoicing mandatory for B2B sales within Germany. Businesses should therefore check which requirements and transition periods apply to them and adjust their processes accordingly.

Key takeaways

• From January 1, 2025, businesses in Germany must be able to receive e-invoices. However, they have until the end of 2026 (or the end of 2027 for some businesses) to start issuing e-invoices.
  
• E-invoices must be generated in a standardized format. The most common standards in Germany are ZUGFeRD and XRechnung.
  
• Transitioning to e-invoicing might require businesses to adjust their IT, bookkeeping, and enterprise resource planning (ERP) systems, as well as their internal processes.
  
• E-invoices can automate processes, speed up invoice processing, and reduce manual errors.
  

What is an e-invoice?

An e-invoice (short for electronic invoice) is an invoice that is created, sent, and received digitally. This digital document replaces traditional paper invoices. E-invoices include the same information as paper invoices—such as product or service details, prices, taxes, and payment information.

What are the pros and cons of e-invoicing?

E-invoices reduce your administrative workload, speeds up the invoicing process and improves the accuracy of data processing. They also promote sustainability by reducing paper consumption. In Germany, e-invoicing is being driven by legal requirements to increase efficiency and standardization across the entire corporate accounting system.

However, moving to e-invoicing means that companies must adapt their IT systems and internal processes to ensure the smooth creation, transmission, and processing of electronic documents. Specialized software solutions designed to create and manage electronic invoices are key to helping companies meet regulatory requirements and streamline business processes.

Stripe Invoicing can support you with fast, compliant invoicing. Stripe’s Invoicing also enables the automation of invoicing and accounting workflows, facilitates straightforward payment collection, and simplifies transaction reconciliation. By using Invoicing, your e-invoices will be optimized for mobile devices, tablets, and desktop computers.

What does the law say about mandatory e-invoicing?

The Growth Opportunities Act made e-invoicing mandatory in the B2B sector. Many European Union member states have long drawn on the EU’s proposed reforms to digitize e-invoices. The EU has continued to digitize its value-added tax (VAT) regulations through its VAT in the Digital Age (ViDA) initiative. The ViDA package was adopted in March 2025 and covers digital reporting obligations and electronic invoicing.

This law is part of a broader initiative—the so-called Growth Opportunities Act—to digitize and improve efficiency in business and the public sector. The goal is to speed up invoice exchange and processing, increase transparency, and minimize the risk of fraud. Below, we take a closer look at the law’s key points.

Mandatory e-invoicing in the B2B sector

From January 1, 2025, businesses in Germany must be able to receive e-invoices. Transitional regulations allow proper invoices and other electronic formats, such as PDFs, until the end of 2026, subject to the recipient’s consent. This transitional period lasts until the end of 2027 for certain businesses.

Standardized formats

For optimized processing, electronic invoices must be created in a standardized format. Using common standards such as ZUGFeRD and XRechnung, which have been widely adopted in Germany, improves compatibility between different accounting systems.

Stripe supports forwarding e-invoices in XRechnung via app partners, which require no code and are straightforward to set up. These partners can support billing and subscription workflows through both the application programming interface (API) and Dashboard, and they also provide support for similar needs in many other regions. For example, the Billit app on the Stripe App Marketplace can help with these needs.

Security and data protection regulations

The law mandates strict security and data protection standards to ensure the integrity and confidentiality of transmitted data. Businesses must ensure their systems meet the legal requirements to avoid potential penalties.

Transition periods and support for SMEs

Small and medium-sized enterprises (SMEs) will benefit from longer transition periods and special support measures to help them switch to e-invoicing. These include information campaigns, financial support, and technical assistance.

Penalties for noncompliance

Companies that fail to comply with the new regulations can expect to face penalties. These penalties can range from fines to restrictions on participating in public tenders.

What impact does mandatory e-invoicing have on businesses?

Mandatory e-invoicing has wide-reaching impacts across all areas of business in Germany. While it presents opportunities, it also brings challenges, as businesses must rethink and adapt their systems and processes to meet the new statutory requirements. While the initial transition might entail costs and additional workload, it offers significant long-term benefits, including greater efficiency, lower costs, reduced environmental impact, and better compliance. It is an integral part of digitization and supports sustainable business. That said, businesses need to plan and manage any teething issues carefully to ensure a smooth transition.

Here are some of the most important impacts and necessary adjustments for businesses:

Digital transformation

Businesses may need to invest in new or upgraded IT systems to effectively create, send, and receive electronic invoices. This may involve upgrading software and potentially purchasing new hardware. E-invoicing solutions must be compatible with existing accounting and enterprise resource planning (ERP) systems to ensure smooth processing.

Implementation and compliance

Companies must ensure that their processes, invoicing, and accounting systems adhere to both technical and legal requirements—including compliance with specified formats such as ZUGFeRD or XRechnung in Germany. Since Germany has strict data protection laws, businesses must ensure that their handling of e-invoices complies with the General Data Protection Regulation and other applicable data protection regulations.

Operational efficiency

Electronic invoices can be processed quicker than paper invoices, speeding up the entire accounting process. This results in faster payment processing and can improve liquidity. E-invoicing enables automation of many processes, reducing manual errors and increasing efficiency.

Sustainability initiatives

Transitioning to e-invoicing makes businesses more environmentally friendly by reducing paper use and, therefore, their environmental footprint.

Market and customer relations

Businesses can improve customer satisfaction through more efficient and accurate billing processes. Businesses that adapt quickly to digital standards may gain a competitive edge over less agile competitors.

Training and staff development

Businesses may need to invest in training to make sure that their employees are familiar with the new systems and processes.

Who does the law apply to?

Mandatory e-invoicing in Germany primarily affects businesses in the B2B sector. Here is an overview of the main target groups and their obligations:

Companies in the B2B sector

E-invoicing mandates affect businesses of all sizes that carry out business with other companies, from large enterprises to SMEs. This includes both suppliers and customers. The law does not provide specific exemptions for certain sectors; mandatory e-invoicing applies to all B2B transactions across all sectors.

Public sector

While the law focuses primarily on the B2B sector, similar regulations for the public sector have been in force for some time. E-invoicing is already mandatory for public sector organizations and their suppliers. This applies to federal authorities and increasingly also to municipal agencies.

Exceptions and special regulations

Some transactions could be exempt from mandatory e-invoicing, depending on the type of supply and the specific regulation.

Transitional regulations are still in place for issuing e-invoices to minimize the financial or operational strain of the transition:

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customize, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.
  
• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders, and AI-powered dunning tools that help you recover more revenue.
  
• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.
  
• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.
  
• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.
  

Learn more about how Stripe can simplify your accounts receivable process, or get started today.

FAQs about e-invoices in Germany