Starting in January 2025, all entrepreneurs in Germany must be able to receive e-invoices. E-invoicing is becoming a legal requirement in Germany, replacing traditional paper invoices with digital, machine-readable formats. By 2027, businesses with an annual turnover of more than 800,000€ will be required to issue e-invoices for B2B transactions. By 2028, this obligation will extend to all businesses, including freelancers and small entrepreneurs.
What is E-Invoicing?
An electronic invoice is an invoice that is issued, transmitted, and received in a structured data format, allowing for its automatic and electronic processing. Unlike traditional invoices, structured e-invoices contain data that can be automatically imported into the buyer's system, eliminating the need for manual entry.
Germany mandates two primary formats for e-invoicing:
XRechnung: An XML-based format that is mandatory for Business-to-Government (B2G) transactions and large businesses. It is machine-readable and adheres to the EN 16931 standard.
ZUGFeRD: A hybrid format that includes both a PDF/A-3 for human readability and an XML component for machine readability. It is ideal for B2B and B2C transactions, offering flexibility for businesses of all sizes.
These regulations will phase out traditional paper invoices and non-compliant formats, making e-invoicing mandatory for all businesses in Germany.
Finom’s E-Invoicing Feature :
Finom’s upcoming e-invoicing feature will help your business stay compliant with the latest German regulations. Here’s what you can expect:
Receive E-Invoices: Upload or automatically receive e-invoices in XRechnung and ZUGFeRD formats.
You can upload e-invoices received from external sources for processing.
Preview options allow you to review invoices in a human-readable PDF format before processing.
Create and Send Compliant E-Invoices: Easily generate e-invoices in the legally required formats: XRechnung for B2G transactions and ZUGFeRD for B2B and B2C
Invoices can be sent directly via email or exported for transmission through other channels, seamlessly integrating into your invoicing processes.
💡 Please note that feature includes also:
Cancel with Credit Notes: Issue compliant credit notes and ensure all transactions are properly archived for full traceability.
Multi-Platform Availability: Available across web and mobile platforms, Finom’s e-invoicing feature provides flexibility, allowing businesses to manage their invoices on the go or from the office.
Simplify Payment and Reconciliation: Automate invoice matching, reconciliation, and processing to reduce manual work and speed up your payment cycles.
Who Will Benefit?
This feature is ideal for businesses of all sizes in Germany that want to stay compliant with the latest invoicing regulations. Whether you're a freelancer, small business owner, or a large enterprise, Finom’s e-invoicing feature can help streamline your accounting processes, reduce paperwork, and ensure that you are always up-to-date with regulatory requirements.
How to Get Started:
With Finom’s new feature, you don’t need to do anything extra to start benefiting from e-invoicing. Your downloadable PDFs will automatically comply with e-invoicing regulations – what was previously a standard PDF will now be PDF/A-3 (ZUGFeRD).
Finom provides the option to generate XML (XRechnung) for submission to government services (B2G).
Finom fully complies with German e-invoicing regulations. Our solution allows you to both receive and send e-invoices.
The best part? You don’t need to take any additional steps to start using this feature – everything will be ready to use.
This feature is completely free and will remain so in the future.
If you want to learn more about e-invoicing, you can check this page: https://zugferd.org/e-invoicing/1.0.0/faq.en.html
If you have any doubts or questions, please feel free to contact our Customer Support team from in-app chat or by email at [email protected]