Be prepared for the introduction of e-invoicing from 2025
Digitization does not stop at accounting. One of the most significant developments in this area is the introduction of e-invoicing. From 01.01.2025, this will become a legal requirement. We would like to inform you in good time about the legal requirements and the advantages of the early introduction of e-invoicing so that you are well prepared.
Who is affected by issuing e-invoices?
The obligation to issue an e-invoice only affects taxable supplies between entrepreneurs (B2B), regardless of whether the company is run as a main or secondary business. From 2028 at the latest, all entrepreneurs must issue e-invoices (B2B). In addition, the supplier and recipient must be based in Germany.
When else are you affected and what are the transition periods?
Deadline 1 Jan. 2025:
All companies must be able to receive e-invoices from this date. The priority of paper invoices will no longer apply, but paper invoices may still be sent. The recipient’s consent is required for other electronic invoice formats (e.g. PDF).
Effective date 1 Jan. 2027:
Invoice issuers with a previous year’s turnover of up to max. 800,000 euros can continue to send paper and PDF invoices until 31. Dec. 2027, provided the invoice recipient has given their consent. Invoice issuers with a previous year’s turnover of over 800,000 euros must send e-invoices in the B2B area from 1 Jan. 2027.
Effective date 1 Jan. 2028:
From 1 Jan. 2028, transitional regulations will no longer apply. This means that e-invoicing will be mandatory for every company in the B2B sector from 1 Jan..2028, i.e. it must be possible to create and send e-invoices.
What is an e-invoice?
An e-invoice (electronic invoice) is a digitally created and sent document that is available in a structured electronic format. Unlike a PDF file, an e-invoice contains structured data that can be processed automatically without manual input. This not only brings efficiency benefits, but is also required by law.
From January 1, 2025, a distinction will be made between electronic invoices (e-invoices) and other invoices. In order to meet the requirements of the law, law firms and companies need software that can process e-invoices in accordance with the European standard EN16931. Formats such as PDF, .tif, .jpeg or .docx are suitable for digital presentation, but do not meet the requirements for electronic processing.
The permissible formats already used in practice are ZUGFeRD from version 2.01 and XRechnung. Sophisticated solutions for creating and receiving invoices in accordance with these standards already exist and have been established for years. This applies, for example, to all DATEV invoicing programs.
Why is e-invoicing important?
From 01.01.2025, e-invoicing will be mandatory in many cases, especially in business transactions with public clients. E-invoicing is also becoming increasingly important in the B2B sector, as it speeds up the entire invoicing process, reduces errors and increases transparency.
What are the advantages of introducing e-invoicing early?
- Error reduction: Structured data entry minimizes the risk of input errors.
- Time and cost savings: Automated processes reduce manual effort and speed up payment transactions. Costs can be saved on paper, envelopes, printing costs, postage and even folders and filing cabinets.
- Sustainability: Less paper consumption and more efficient processes help to conserve resources.
What do you need to do?
To ensure a smooth transition to e-invoicing, we recommend that you start planning immediately. We support you in selecting and implementing suitable software, adapting your accounting processes and training your employees.
- If you use software other than DATEV, clarify with the provider whether the software is able to receive and process e-invoices.
- If you want to create e-invoices before the legal deadline, we can help you with the implementation.
Do not hesitate to contact us. Together we will ensure that your company benefits from the advantages of e-invoicing and that you meet all legal requirements.