Starting January 1, 2025, companies in the B2B sector must comply with new requirements for their invoices. We’ve put together a clear overview of what the e-invoicing requirement actually means. First things first: With Insiders and our standardized solutions for modern invoice exchange and highly efficient, intelligent invoice processing, you’re already well-prepared for all changes.
A clear overview of the e-invoicing requirement for you.
- Mandatory receipt of invoices for tax-exempt B2B transactions officially effective January 1, 2025
- Transition periods for invoicing through 2028
- E-invoices must comply with EN 16931
- PDFs and emails are not e-invoices
Legal requirements and definition of an electronic invoice
What is an e-invoice?
According to the current e-invoice regulation, an electronic invoice is an invoice that is issued, transmitted, and received in a structured electronic format. This enables automatic and electronic document processing without any issues. E-invoices are therefore always machine-readable to begin with. However, Insiders conveniently offers you the option to create a human-readable view document.
The structured electronic format of the e-invoice must comply with the European standard for electronic invoicing (EN 16931) and the syntaxes permitted by the EU Directive. These are UBL and UN/CEFACT CII.
However, the law also allows invoice issuers and recipients to agree individually on the format in which invoices are exchanged between them. A prerequisite for this approach is that the format used also enables the correct and complete extraction of all information required under the German Value-Added Tax Act (UStG) from the e-invoicee-invoice into a format that, in turn, complies with or is interoperable with the EN 16931 standard.
And what does not qualify as an e-invoice?
Just because an invoice is already being sent to you electronically or you are sending it electronically does not mean that, as of January 1, 2025, it will be an official “electronic invoice”. As “Other Invoices,” , all invoices in paper form or in electronic formats that do not comply with the requirements of Section 14(1), sentence 6 of the German Value-Added Tax Act (UStG) will be considered “other invoices” as of January 1, 2025. This includes, for example, PDF invoices or emails containing mandatory invoice details.
Therefore, it is important to use an efficient and flexible solution that processes both electronic invoices in accordance with strict legal requirements and “other invoices” fully automated for you. Avoid resource-intensive hybrid workflows and rely on the Insiders solution, which combines both approaches in a single system: efficient, intelligent, and resource-efficient.
Who is subject to the e-invoicing requirement?
In Germany, the e-invoicing requirement currently (August 2024) applies not only to B2G transactions but also to transactions between businesses (B2B), provided that both the issuing company and the recipient are based in Germany. Credit memos are also subject to the e-invoicing requirement.
Effective Date and Transition Periods for the E-Invoicing Requirement
The introduction of e-invoicing in the B2B sector will become mandatory as of January 1, 2025. However, there are transition periods for sending invoices in accordance with Section 27(39) of the German Value-Added Tax Act (UStG), which make it easier for you to adapt to the new requirements.
Until December 31, 2026, you may continue to send paper invoices for B2B transactions from 2025 and 2026. PDFs, email invoices, or electronic invoices that do not comply with the new requirements are also still permitted, just as before, provided the recipient consents.
Until December 31, 2027, only those invoice issuers may send paper invoices and other invoices that do not comply with EN 16931-compliant invoices may only be sent by invoice issuers with an annual turnover (total turnover pursuant to Section 19(3) of the German Value-Added Tax Act (UStG)) of no more than 800,000 EUR.
Starting January 1, 2028, the new requirements for e-invoices and their transmission methods will finally be mandatory for everyone.
So don’t wait until the last minute to switch to EU-compliant electronic invoicing—start using Insiders today to take advantage of the many benefits of e-invoicing for yourself and your business.
How Insiders Technologies Can Help You
Insiders Technologies supports all common e-invoice formats such as XRechnung, ZUGFeRD, FacturX, FA(2), Fattura PA, and more, and offers you a flexible portfolio for modern invoice processing, including sending and receiving invoices, as well as convenient integration with the most important invoiceportals and networks such as Peppol.
Our solutions integrate seamlessly into your existing systems and ensure a smooth transition to e-invoicing.
We keep an eye on legal developments for you and constantly adapt our services and products to the latest circumstances. This allows you to turn the e-invoicing requirement into an opportunity and approach the changes with confidence.
Our team is always available to answer your questions and help you make the switch to e-invoicing.
Contact us for a personalized consultation and learn how we can work together to optimize your billing processes.
