From paper to digital: The benefits of e-invoicing
Switching from paper invoices to e-invoices offers significant advantages for businesses in Germany, improving efficiency and compliance. E-invoices reduce administrative workload, speed up processing times, and simplify data storage and access. Both issuers and recipients benefit from cost savings and fully automated electronic processing.
Phased introduction of the e-invoicing requirement in Germany
The e-invoicing mandate applies to all taxable B2B transactions between businesses in Germany.
January 1, 2025: Businesses must be able to issue, receive and process electronic invoices. Paper invoices can still be used if the recipient agrees.
January 1, 2027: Businesses with an annual revenue exceeding €800,000 must send e-invoices. Smaller businesses can continue using other formats (e.g., PDFs, paper invoices) if the recipient allows it.
January 1, 2028: E-invoicing becomes mandatory for all B2B transactions in Germany.
What legal requirements and standards apply to e-invoicing in Germany?
Germany follows the European standard for electronic invoicing, EN 16931, in line with EU Directive 2014/55/EU. This regulation requires the use of structured data formats like XML to enable automated invoice processing. Unstructured formats such as PDF, .tif, .jpeg, and .docx do not meet the processing requirements and are not permitted.
The officially recognized e-invoicing formats in Germany are XRechnung and ZUGFeRD (from version 2.0.1, excluding MINIMUM and BASIC-WL profiles). Businesses can use either format, depending on the recipient’s requirements.
How does Odoo ERP support the e-invoicing process?
With Odoo Business Software, companies can easily digitalise their invoicing processes while ensuring compliance with the required formats and legal regulations for e-invoice creation and transmission.
XRechnungen and ZUGFeRD
Odoo supports XRechnung and ZUGFeRD, the standardised formats for electronic invoicing in Germany. These formats include all required structured data, allowing for seamless automated processing.
Automated Invoicing
Odoo automates the invoicing process from start to finish. Once an invoice is created in the ERP system, Odoo automatically converts it into the correct format and sends it to the recipient—no manual work required.
Tax Calculation
Odoo ensures automatic VAT calculation in compliance with German tax regulations. Invoices are formatted correctly for B2B (Business-to-Business) transactions, including all legally required VAT details in the structured invoice data.
Archiving
German law requires businesses to retain invoices for ten years. Odoo seamlessly integrates with the embedded DMS Document Management System, ensuring businesses have easy access to their invoices for audits and compliance checks.
braintec: Your Odoo e-invoicing expert in Germany
Odoo provides a reliable, compliant and automated solution for electronic invoicing. As an Odoo Gold Partner, the financial experts of braintec help businesses in Germany streamline their invoicing processes, ensuring smooth, error-free invoicing and processing. With Odoo’s e-invoicing solution, businesses save time and costs while staying fully compliant with legal requirements—future-proof and efficient.
Further information on e-invoicing requirements in Germany
Questions and answers on the introduction of mandatory e-invoicing on 1 January 2025:
E-invoicing with DATEV:
All about e-invoicing: