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ZUGFeRD is a German electronic invoice (e-invoice) type.
FeRD (Forum Elektronische Rechnung Deutschland) developed the ZUGFeRD format back in 2014. And the format is quickly growing in popularity as its functionality improves with each new version.
The format is a “hybrid” e-invoice type, extremely adaptable for all kinds of e-invoicing. In fact, nowadays, B2B, B2G, and B2C transactions are all possible with it.
This comprehensive guide will tell you everything you need to know!
What Is A Hybrid E-Invoice?
A hybrid e-invoice includes two different files for the same invoice. In the case of ZUGFeRD, those files are XML and PDF.
The reason for this is simple: XML-file invoices and PDF-file invoices serve different purposes.
Computer-generated invoicing systems can automatically process and understand XML files. But XML files are not readable for humans (unless you learn how to read such language).
Humans can read PDF files, but computer-generated invoicing systems cannot process them.
Many businesses preferred either an XML or a PDF formatted invoice in the past.
But the ZUGFeRD format has solved that problem with its intelligent hybrid solution.
Who Are FeRD?
‘FeRD’ stands for “Forum Elektronische Rechnung Deutschland” – which translates, roughly, to “Forum Electronic E-Invoice Germany.”
The Forum was founded back in Berlin, 2010.
Its function is to act as a contact point between companies, administrations, and authorities regarding e-invoicing matters.
FeRD is contacted when there are any issues – technical, practical, or otherwise – with e-invoicing systems.
What Are The Advantages of ZUGFeRD?
1. Hybrid Format
ZUGFeRD’s versatility is its key advantage.
The “hybrid format” feature makes ZUGFeRD an adaptable and versatile e-invoicing option.
Senders and receivers of invoices don’t need to agree on which invoice type to use. ZUGFeRD covers all bases.
2. E-Invoicing Saves Space, Time, and Money
Paper invoicing requires a lot of paper, space to store invoices (which build up rapidly over time), and printing costs.
ZUGFeRD format – which is a pure e-invoice – eliminates these issues.
3. Minimisation of Input Errors
Recipients don’t need to re-write invoice contents into their own, preferred formats. This reduces the (likely) chance of input errors.
And ZUGFeRD, with its hybrid formatting, is especially useful in this regard.
4. “One-Size-Fits-All”: B2B, B2G, and B2C Invoicing
It previously wasn’t possible to send ZUGFeRD invoices to the Federal Government in Germany.
But that is now possible since the development of ZUGFeRD 2.1.1.
Therefore, ZUGFeRD is the closest invoice format to a “one-size-fits-all” standard throughout Germany.
If you want to send ZUGFeRD invoices quickly and easily, try our invoice portal.
Does My Company Need to Use The Format?
Nobody “needs” to use the ZUGFeRD format, but it might be useful for your business.
You could benefit from using ZUGFeRD invoices if you:
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Work with contracting authorities
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Work with international businesses or administrations
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Already use an e-invoicing format but also need to provide printable invoice formats for a client, auditor, or supplier
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Use printable invoices types but want to start using electronic invoices, too
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Want to go paperless and be more environmentally friendly
If any of these pointers apply to you or your company, then you might want to consider ZUGFeRD invoices as a solution.
What is the ZUGFeRD Format?
According to FeRD, there is not a specific format or layout required for ZUGFeRD invoices.
However, you should ensure that you include the correct contents for whoever you happen to be invoicing.
For example, if you are invoicing the German Federal Government then you should include the contents that they specify.
The main incentive to format your invoice correctly? Your supplier/client might reject the invoice if it doesn’t include the correct contents. And that will delay your payment.
Why Doesn’t Germany’s Public Administration Accept ZUGFeRD 1.0?
Because version 1.0’s XML file is not compatible with the European e-invoicing standard EN 16931.
Not only version 1.0, but version 2.0, 2.0.1, and 2.1 are not accepted by public authorities in Germany.
If you wish to send a ZUGFeRD invoice to German public authorities, you must use ZUGFeRD version 2.1.1.
What Is The Difference Between ZUGFeRD and XRechnung?
XRechnung is the German adaptation of the European standard ‘EN 16931’.
It is a single XML file, which means that it is a simple invoice document meant for automatic processing by some kind of software.
The key difference between ZUGFeRD and XRechnung, then, is this:
ZUGFeRD includes both an XML file and a PDF file; whereas XRechnung only includes an XML file.
Furthermore, the XRechnung file has specific-to-Germany contents (tax-based, mostly) which earlier versions of ZUGFeRD’s XML file did not incorporate.
Since July 2020’s introduction of ZUGFeRD 2.1.1, though, ZUGFeRD and XRechnung are now compatible.
How Does ZUGFeRD work?
ZUGFeRD invoices are, as we have explained, designed so that companies who prefer PDF/readable invoices can keep their invoices archived while also having the ability to send digital invoices in XML format.
In order to create and send such invoices, you could make use of the Invoice-Portal software.
If you want to send ZUGFeRD invoices quickly and easily, try our invoice portal.
How Do I Send a ZUGFeRD Invoice?
You should always check how your client would like to receive their invoice before sending it.
The most common methods of sending invoices to your client are via:
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PEPPOL
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Email
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De-Mail
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Submission portal
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Web upload
You can send invoices to clients using invoicing solutions, by selecting whichever method you prefer (email, PEPPOL, etc).
With Invoice-Portal, your invoice creation, conversion, and sending can be achieved in one place.
Such solutions save time and money – especially when you need to process high numbers of invoices.
How to Create & Send ZUGFeRD Invoices via Invoice-Portal
It is an extremely simple process.
Once you have entered your invoice details (either by uploading your file or by entering the invoice data manually), then you can send the invoice in whatever format you choose with a few simple clicks.
First, select the invoice type you want to send:
Then select the sending method (email or PEPPOL):
If You Have Any More Questions About ZUGFeRD Invoices,
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