E-Bill: what should companies consider?

The German economy has hit a period of stagnation, with the federal government revising the optimistic economic forecasts made during the summer of 2024 by October of the same year. Projections now indicate a 0.2 percent decline. This economic slowdown is particularly challenging for small and medium–sized enterprises. To provide assistance, the Bundestag passed the Growth Act in November 2023, which was subsequently approved by the Federal Council in March 2024. One key element of this legislation is the introduction of electronic invoicing, set to impact the entire B2B sector starting in early 2025.

What is an e-bill and what advantages do you bring?

An e-bill is information on the completely digital invoice in a data format structured and readable by machine. In the case of calculation X, the XML format is used, which can be transmitted electronically and can be received and automatically received.

Although an invoice in PDF format is also a digital invoice, there are serious differences in e-bill. Contrary to the calculation of the paper or PDF, this can be processed without media fractures. It is therefore available as a format of semantic data and is therefore not suitable for a visual inspection; However, display programs can legally present the e-bill.

The introduction of the electronic invoice should have some advantages for the accountant and the recipient, including:

• Simplified invoice and processing
• Abbreviated throughput times
• Potential savings for shipping and processing of the invoice
• An increase in the process and quality of data

Electronic invoicing opportunities also include invoicing independent of the position and processing of decentralized invoice.

Why does the electronic billing obligation arrive in Germany?

The e-bill for federal suppliers has been introduced in Germany since 2018; From 2025 it will also be mandatory in the B2B area. Companies who buy technologies and accessories on behalf must be able to receive information on the invoice from 1 January 2025 at least in a module readable by the machine.

The e-bill is issued, transmitted and processed in data format pursuant to the European standard series EN16931. The Federal Republic of other EU Member States follows where the electronic calculation in commercial transactions is already standard. The reasons that speak for the e-bill are:

• Cost savings: German companies spend around 30 billion euros every year for the creation and sending of paper invoices. The e-bill is sent by e-mail, which allows you to save paper and printing costs. The environment can also be alleviated by the consumption of reduced paper.
• Savings time: electronic invoices can be created, sent and processed much faster than the analogue alternative. This saves employees in the accounting time and overall reduces delivery times. The automated electronic archiving of the electronic invoice contributes to further savings due to less organizational efforts.
• Safety: Information on the invoice mechanically legible should reduce the susceptibility to invoice errors or information on sales tax with respect to the paper invoice. This allows companies to cancel time and second invoices.

Electronic invoices are also part of an electronic VAT registration system that the European Commission is planning as part of the Vida initiative. The system must be introduced in the European Union in 2028 as soon as possible and powered with the data of electronic invoices. The main objective is to prevent the fraud of the sales tax through which the German state escapes the year to two billion cyliards in size.

What is the legal situation on e-bill in Germany?

The obligation to issue electronic invoices affects only the taxable services between companies. Instead of creating invoices in Word or Excel, invoice information must be deposited in data format readable by car in the future. This applies to the fact that entrepreneurs manage their business in main -linea. The B2C area and non -internal sales of German B2B are currently excluded from electronic invoicing.

For many companies, the introduction of electronic invoicing is associated with additional costs caused by the electronic billiard software required and by the necessary training of employees. Small and medium -sized companies in particular that make up 99 percent of the German company scene suffer from this financial challenge. In order to relieve them, the legislative situation provides periods of grace for the transition to electronic calculation.

For controllable services in Germany, companies must guarantee the reception and processing of e-bill from 1 January 2025. A consent of the recipient of the invoice is not necessary for this. Since the electronic invoice is sent via E -mail similar to a PDF file, at least one e -mail account is needed active for reception.

Since there is a high implementation effort in particular during the issue and processing of electronic invoices, the legislator provides for transition regulation by the end of 2027. By 2026, «other invoices» can continue to be sent to the B2B area with the consent of the recipient of the invoice. The name represents classic paper invoices and invoices in PDF format.

In 2027, companies can continue to send conventional invoices if the sales of their previous year are lower than 800,000 euros. If this limit is exceeded, electronic invoices are mandatory, but which can be transmitted in the Edi procedure with the recipient’s consent.

Since 2028, the e-bill has been mandatory for all companies, unless they are small invoices. If the amount of the invoice does not exceed 250 euros, these could continue to be issued as «other invoice».

How are electronic invoices maintained?

With electronic invoice, the same conservation periods apply to the variant of the classic invoice. Electronic invoices in the original structured electronic data format must be saved for ten years. As for PDF calculations, it is essential to pay attention to the commitment of data during the storage of invoices.