Industrial, economic, social... Germany is a world power in many fields, isn't it? At easyap, we focus on electronic invoicing, which is our area of expertise, we are using this article to take an in-depth look at how electronic invoicing works in Germany. Therefore, below we analyze the requirements and procedures for digital invoicing in this country. It is also essential there and, as in Spain, it guarantees legal compliance and optimizes processes and commercial relations throughout the business fabric.
Current status of electronic invoicing in Germany
In line with the rest of Europe and the world, electronic invoicing has been experiencing remarkable growth in Germany in recent years. In fact, it is following EU trends in terms of its implementation. However, to see this more clearly, it is best to answer several key questions to clarify the picture:
- Tax authority responsible for electronic invoicing: Federal Ministry of the Interior (BMI) or Ministry of the Interior. At the federal level, each state or Land assumes responsibility and management.
- Mandatory: Currently, only companies and self-employed individuals that do business with the Public Administration are required to issue electronic invoices.
- Is an electronic signature required? No.
- How long must electronic invoices be stored? Currently, it is mandatory to keep them for a period of 10 years (although, in certain cases, this requirement can be up to 11 years).
And are B2B electronic invoices mandatory?
In turn, in November 2023, the German government launched the latest proposal for the Growth Opportunities Act (Wachstumschancengesetz). This includes mandatory regulations on electronic invoicing between companies or B2B. Likewise, according to this law, which was finally approved in March 2024, the regulation has the following deadlines:
- From 2025 onwards – All German companies must be able to receive electronic invoices in EN16931 format. The requirement for the buyer to give their consent to receive electronic invoices is eliminated.
- Until December 31, 2026 – Paper invoices and electronic invoices in formats other than EN16931 are still permitted, but will only be sent with the consent of the recipient.
- Starting in 2027 – It will be mandatory to issue B2B electronic invoices for companies that have exceeded €800,000 in turnover in 2026. However, companies can also continue to use EDI after this date.
- Starting in 2028 – It will be mandatory to issue B2B electronic invoices for all companies. At the same time, EDI will continue to be permitted as long as the VAT information can be extracted in EN16931.
Therefore, considering the deadlines, although they are similar to those in Spain, perhaps they are somewhat behind in the implementation of online invoicing in Germany. Here, mandatory electronic invoicing has been in effect since 2024.
Requirements for electronic invoicing in Germany
On the other hand,electronic invoicing in Germany is regulated by legal and technical requirements. These are established, on the one hand, to guarantee the authenticity, integrity, and legibility of invoices. On the other hand, to ensure their acceptance by tax and commercial authorities.
Each state may establish or add specific aspects, but in general, every organization must take into account two bodies (one legal and one technical):
- Firstly, electronic invoices must comply with the legal requirements laid down by the German Fiscal Procedure Act (Abgabenordnung – AO) and the Value Added Tax Act (– UStG – UStG). These laws specify the mandatory information that invoices must include.
- From a technical standpoint, electronic invoices must comply with the data exchange standards and formats established by the Federal Finance Administration (Bundesministerium der Finanzen – BMF). The most commonly used standard in Germany is the ZUGFeRDformat. This combines a PDF file with structured data in XML format, which facilitates automatic processing by computer systems.
In addition to legal and technical requirements, German companies must also comply with relevant regulations and standards. For example, in the area of public procurement, electronic invoices are governed by the Public Procurement Act (Vergaberecht). Failure to comply with these regulations results in financial and legal penalties ranging from fines to legal action by the tax authorities.
Phases of B2B electronic invoicing in Germany
On the other hand, B2B electronic invoicing in Germany follows a well-defined process that encompasses several phases. These phases are detailed below to give you a better understanding of the electronic invoicing flow in the German business context:
1. Broadcast
This is the creation and issuance of the electronic invoice by the supplier or issuer, in accordance with legal and technical requirements. To do this, specialized electronic invoicing software to facilitate compliance with the requirements.
2. Transmission
Once the electronic invoice has been generated, it is sent by email, document exchange platforms, or integrated ERP solutions. The crucial thing is to ensure the security and integrity of the data to prevent tampering or fraud.
3. Receipt and validation
After receiving the invoice, the recipient proceeds to validate it by verifying its authenticity and integrity, as well as reconciling the data with internal records. At this point, automatic validation tools will ensure its compliance with requirements.
4. Storage and management
Finally, the validated electronic invoice is stored. This means that it can subsequently be consulted, audited, and thus comply with document retention requirements. That is why it is essential to maintain an efficient management system that provides quick access to archived electronic invoices and guarantees their integrity and availability.
As you can see, B2B electronic invoicing in Germany is not very different from that in Spain. In fact, its objective is also to guarantee efficiency, security, and legal and commercial compliance, but in this case, adapting to the technical requirements of its business fabric.
Comparative implications with Spain
Precisely in terms of requirements, we can also pause to compare electronic invoicing in Germany and Spain. Starting from the basis that we share many aspects, the world of e-invoicing in Germany presents significant differences:
Legal aspects
In Germany, electronic invoicing is regulated by the German Fiscal Procedure Act and the Value Added Tax Act. In Spain, it is covered by Law 25/2013, of December 27, which outlines a similar legal framework for the issuance of electronic invoices.
However, both countries require compliance with their specific standards and formats, such as the aforementioned ZUGFeRD in Germany and Facturae or other official formats in Spain.
Technical aspects
Technically, Germany and Spain use similar technologies for the generation, transmission, and storage of electronic invoices. This includes the use of advanced electronic signatures to guarantee the authenticity and integrity of invoices.
However, there may be differences in the standards and technological platforms preferred by companies in each country. In turn, this may influence the implementation and interoperability processes between systems.
Furthermore, at a cultural level, Germany and Spain have different perceptions and practices. For example, in Germany, where the business culture tends to be more conservative, there may be greater initial resistance to the adoption of new technologies. In Spain, electronic invoicing is more widely accepted and adopted, especially in the public administration and large companies, where its use is very actively promoted.
And how do you send an electronic invoice from Spain to Germany?
At this point, if you are an entrepreneur or financial director, you come to the big question: how can you send an invoice from Spain to Germany that meets all the requirements? Well, sending an electronic invoice to Germany involves following a few steps, which we detail below to ensure its safe delivery and compliance.
- Prepare the electronic invoice with all the mandatory information and in accordance with German format and standards.
- Use a secure transmission medium that guarantees the confidentiality and integrity of the data.
- Send the invoice to the recipient in Germany, including the correct email address or contact information to ensure successful delivery.
- Confirm that the invoice has been received correctly by means of a follow-up email or through the document exchange platform you use.
- File a copy in the document management system.
And the best part is that all this effort and the ability to to comply with German electronic invoicing requirements, even as a Spanish company, are at your fingertips. And in a very simple way: by contacting easyap. Our team, with international experience in developing solutions for all types of companies, will help you.
At easyap, we design a comprehensive solution that adapts to you and your business. It doesn't matter if your customers and suppliers are German. Nor if you have to invoice according to German standards or those of any other country. Our software combines functionalities and adapts to each customer, their sector, and their characteristics: it generates, sends, receives, and stores electronic invoices according to the company. We can demonstrate this to you whenever you want.
