Understanding the German E-Invoice Mandate: Key XML Types and Channels

Germany is ushering in a new era of digital invoicing with the e-invoice mandate, effective January 1, 2025. This mandate requires businesses to receive invoices electronically, marking a major shift in how invoices are exchanged.

What’s Changing? 

Starting on January 1, 2025, businesses in Germany will be obligated to receive e-invoices. This move is part of the European-wide initiative to streamline VAT compliance, reduce administrative burdens, and foster more efficient transactions between businesses and governments.

Key Elements of the German E-Invoice Mandate:

1- XML Formats for Receiving Invoices

Germany’s mandate focuses on the following XML formats for receiving e-invoices:

• XRechnung: This is the primary format for e-invoices received in Germany. It ensures compliance with EU standards and enables easier data processing.
• ZUGFeRD: While primarily used for B2B transactions, this format can also be received by businesses as part of the mandate. It combines both machine-readable XML data and human-readable PDF in a single document, making it easier for businesses to process invoices.

2- Submission Channels

Businesses must ensure they can receive e-invoices through standardized and secure channels:

• Peppol Network: As a pan-European standard, the Peppol network enables secure, efficient receipt of invoices from various EU countries.
• Email-Based XML Receipt: While the preferred method is through platforms like Peppol, businesses may also receive e-invoices by email in XML format, ensuring flexibility and ease of integration with existing systems.

The e-invoice mandate isn’t just about compliance—it’s about enhancing efficiency, accuracy, and reducing paper-based processes. By receiving invoices electronically, businesses can significantly cut down on manual entry, avoid errors, and speed up payments and processing.

✅ How can businesses prepare for the January 1, 2025 deadline?