Electronic invoicing in Germany for public administration (B2G)

Antworten auf häufige Fragen

The Federal Ministry of Finance is planning to make electronic invoicing in the B2B sector mandatory for all companies from 1 January 2025.

Here you will find answers to frequently asked questions.

If you have any further questions, please do not hesitate to contact us!

What exactly is an electronic invoice?

In response to the European Directive 2014/55/EU, the German legislator defines an electronic invoice as follows in the Act on the Promotion of Electronic Administration (E-Government Act – EgovG):

An invoice must be issued, transmitted and received in a structured electronic format, and
The format must enable the invoice to be processed automatically and electronically.

§4a Para.2 German EGovG

Simply sending invoices as PDF files does not fulfil these requirements, as recipients cannot process such PDF files automatically. Instead, recipients expect electronic invoices to be in a structured, machine-readable format that can be understood automatically.

The German government only accepts electronic invoices that use the XML language.

More precisely, it accepts one of two XML languages:

Universal Business Language (UBL) or
UN/CEFACT Cross Industry Invoice (CII).

The invoicing software of large administrations can process XML files automatically. This is the purpose of an electronic invoice.

Which invoice format is required by the public administration?

The German federal government currently accepts two e-invoice formats: XRechnung and ZUGFeRD. Both invoice formats contain an XML file in either UBL or CII (explained in the ‘What Exactly Is An E-Invoice?’ section of this article).

Here you will find a brief explanation of the XRechnung and ZUGFeRD invoice formats:

1. XRechnung

The XRechnung format was developed by the Coordination Centre for IT Standards (KoSIT) of the German Federal Government.

The purpose of the development was to ensure that German government agencies process invoices correctly.

Following the introduction of the European ‘Directive 2014/55/EU’, Germany needed to update its invoicing standards.

That is why KoSIT developed the XRechnung. (Click here for more information about Directive 2014/55/EU).

The XRechnung format contains ONLY an XML file, which distinguishes it from the ZUGFeRD format.

It is the preferred option for the German Federal Government as well as for German authorities and administrations. (such as the federal and state governments and Deutsche Bahn).

The recipients of XRechnung invoices must be able to process both the UBL and CII languages, so that the senders of invoices can send both languages.

2. ZUGFeRD 2.1.1

The ZUGFeRD format was developed by FeRD (‘Forum Elektronische Rechnung Deutschland’). The aim of the development was to create a comprehensive and standardised invoice format for the whole of Europe.

Earlier versions of ZUGFeRD (versions 1.0; 2.0; 2.0.1; and 2.1) are not recognised by the German government. However, version 2.1.1 is fully compatible with the XRechnung format.

The hybrid-formatted invoice structure is particularly interesting for companies that want to process invoices automatically (with XML invoices), but also want to read some invoices themselves (in PDF format).

XRechnung vs. ZUGFeRD: What’s the difference?

XRechnung uses a single file: an XML file.

ZUGFeRD uses two files: an XML file and a PDF file.

The ZUGFeRD 2.1.1 XML file is compatible with the XRechnung standard.

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How can I create an invoice in XRechnung or ZUGFeRD format?

t is possible to create your invoice manually via the federal government’s ZRE website, which will automatically format it for you. To do this, you need to log in to the portal, complete the ZRE web form and issue your invoice free of charge.

However, this is a lengthy and tedious process. Especially if you have more than a few invoices to process. To convert your existing invoices quickly and easily, you can use invoice creation software such as Invoice-Portal.

With software like Invoice-Portal, you can create, convert and send all your invoices directly from the portal (via email, Peppol, etc.).

What should an invoice to the public administration contain?

According to the federal government’s own website, the following contents are required:

1) Buyer reference (or the routing ID/routing identification number)
2) The due date of the payment
3) Bank details of the account to be paid
4) The e-mail (or De-Mail) address of the invoice issuer
5) Order number (or the ‘order number’). This can be found on your contract

ZRE Portal: How to send invoices to the German Federal Government

You can send invoices to the federal government manually via the ZRE submission portal. However, this method can be time-consuming. You have to enter all your invoice data manually and in separate individual invoices.

To save time (and therefore money), you can use an e-invoicing solution such as the Invoice Portal instead. With the Invoice Portal, you can automatically convert invoices into the correct formats and send them to customers – including the federal government – directly from the software.

Conclusions

The new e-invoicing rules may take some getting used to, but they will ultimately make invoicing cheaper and easier for everyone. Invoicing the German government is easy once you’ve worked out which invoicing approach is best for your business.

Do it now! And then you can focus your energy on the important things in your business. If you want a simple invoicing solution, then you should consider the invoice portal.

If you have any questions about the Invoice Portal, please contact us at any time!

Tel: +49 561-56014568
Email: info@invoice-portal.de