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E-Invoice

What is an e-invoice? Definition and meaning

An e-invoice (electronic invoice) is an invoice that issues, transmits and receives its content in a structured, machine-readable data format. The invoice data is held as XML and can be processed directly in software without manual entry.

The decisive standard is the European norm EN 16931, which defines the data model of an e-invoice in a uniform way. Formats such as XRechnung and ZUGFeRD implement this standard.

E-invoice, PDF and paper invoice compared

Not every digital invoice is an e-invoice. What matters is whether the invoice data can be read out automatically:

  • Paper invoice: is printed, sent and has to be entered manually by the recipient.
  • PDF invoice: is available digitally, but is purely an image of the invoice. The data it contains still has to be typed in or read out using text recognition.
  • E-invoice: contains the invoice data in a structured form in XML format. Receiving systems can check, post and archive the invoice without any intermediate step.

Formats: XRechnung and ZUGFeRD

Two formats are common in Germany:

  • XRechnung: a pure XML format with no visible invoice image. It is well established in exchanges with public sector clients (B2G).
  • ZUGFeRD: a hybrid format in which a PDF file carries an embedded XML data set. This makes the invoice readable for people and, at the same time, able to be evaluated by machine.

Both formats meet the EN 16931 standard and therefore count as a permissible e-invoice.

E-invoicing obligation from 2025

Since 1 January 2025, all domestic businesses in the B2B sector in Germany must be able to receive e-invoices. The obligation to issue e-invoices is taking effect in stages:

  • from 2027 for businesses with more than 800,000 euros in prior-year turnover,
  • from 2028 for all other domestic businesses.

For businesses, this means that it should be possible to create outgoing invoices in an e-invoice format and to process incoming e-invoices automatically.

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Frequently asked questions

What is an e-invoice?
An e-invoice is an invoice that is issued, transmitted and received in a structured, machine-readable data format. A plain PDF file or a scanned paper document does not count as an e-invoice, because the data it contains cannot be processed automatically.
What is the difference between XRechnung and ZUGFeRD?
XRechnung is a pure XML format with no visible invoice image and is used above all in exchanges with public sector clients. ZUGFeRD is a hybrid format: a PDF file with an embedded XML data set, so that the invoice is readable for people and can be evaluated by machine at the same time. Both meet the European standard EN 16931.
Who does the e-invoicing obligation apply to?
Since 1 January 2025, all domestic businesses in the B2B sector in Germany must be able to receive e-invoices. The obligation to issue them is being staggered: from 2027 for businesses with more than 800,000 euros in prior-year turnover, and from 2028 for all other domestic businesses.
How do you create and receive e-invoices with software?
A suitable piece of software creates outgoing invoices directly in the e-invoice format and reads incoming e-invoices automatically. With projectfacts, you create e-invoices in the invoicing module and process incoming documents in your incoming invoices administration.