Due to a new EU regulation, invoices must generally be issued in electronic form from next year. What you need to know about this and whether you are already required to issue an e-invoice from 2025 is explained by Daniel Schäfer in this article.

This is an e-invoice

From 01.01.2025, the E-Invoice Regulation will apply in Germany, which was developed on the basis of a new EU directive. This regulation precisely defines how companies must issue invoices in the future and clarifies who must comply with the new requirements and from when.

There are two new formats in which invoices must be issued in the future. The first format is an XML file (X-Rechnung). This file contains all important information at precisely defined points, for example about the recipient of the invoice, the VAT rate or the tax number.

The second format is a PDF file in which the XML file is embedded. In total, two new pieces of information are added to the invoices. Firstly, a routing ID (Leitweg-ID) of the invoice recipient, which enables quick traceability of VAT payments.

Secondly, there will be a supplier number in the future, which is intended, for example, to quickly clarify cases of VAT fraud.

How to create an e-invoice

Many entrepreneurs are currently wondering how to create an e-invoice. Of course, there is still a lack of practical experience for concrete recommendations, but there are basically two methods.

You can have your invoice created using online generators. This is quick and may even be possible free of charge. However, the disadvantage is that you have to set up a system yourself to ensure digital storage and you have to do your bookkeeping manually.

In most cases, the better solution is to use invoicing or accounting software that offers you more functions. Use the remaining time before you are actually required to issue e-invoices to consider which features are important to you and select the appropriate software based on these criteria.

Exceptions to the e-invoice obligation

From when do the specific requirements apply? In principle, you must issue an invoice for any amount greater than 250 euros. This requirement will not change in the future. The first thing you should ensure in any case is the ability to receive e-invoices from 1 January 2025. The simplest way to do this is to receive them by email.

As a rule, you can issue your invoices in the new format or still in the traditional paper form until 31.12.2026. From 01.01.2027, the first tightening will apply. Companies that achieved a turnover of more than 800,000 euros in the previous year must send e-invoices.

From 01.01.2028, all companies must then issue, send and store their invoices according to the new guidelines.

Even though there is still plenty of time to prepare, we recommend that you address the topic early and implement solutions so that you can meet your obligations right from the start.

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