E-invoicing obligation: X-Invoice and ZUGFeRD explained simply

E-invoicing obligation: X-invoice and ZUGFeRD in comparison

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The mandatory introduction of e-invoicing in Germany is approaching, and many companies are asking themselves: which formats are permitted and how do they differ? The most important formats that companies should know are the X-Invoice and ZUGFeRD. In this blog article, we will introduce you to the two formats in detail, explain their technical specifications and discuss which format is best suited for your company.

What is e-invoicing?

In short, it is important to know that companies are initially required to be able to receive e-invoices from January 1, 2025. Compulsory sending of e-invoices is mandatory for companies with an annual turnover of more than €800,000 from January 1, 2027 - and for all companies from January 1, 2028.

Tip: GetMyInvoices offers all the features to fulfill your obligation to receive invoices easily and efficiently. Try GetMyInvoices without obligation!

The formats of the e-invoice: X-Invoice and ZUGFeRD

When introducing e-invoicing, companies are faced with a choice between different technical formats. The two best known and most frequently used formats are the X-Invoice and ZUGFeRD. Both formats meet the legal requirements and are suitable for electronic transmission to authorities and companies, but differ in some important points.

X-Invoice: The standardized format for authorities

The X-invoice is a structured, purely machine-readable XML format that was developed specifically for electronic invoicing with authorities. It is a format that does not contain a visual component, which means that it is not displayed as a PDF document by default. The X-invoice complies with the European standard EN 16931, which ensures that all relevant information is included and can be processed uniformly. Tip: To introduce the e-invoicing requirement, GetMyInvoices offers the option of converting X-invoices into a human-readable format.

Advantages of the X-invoice:

  • Standardization: The X-Invoice is specifically designed to meet the requirements of authorities and offers a high degree of standardization.
  • Interoperability: Since the X-Invoice complies with European standards, invoices can be easily exchanged between different systems.
  • Conformity: By using the X-Invoice, companies ensure that they comply with the legal requirements of public contracting authorities.

ZUGFeRD: The hybrid format for companies

ZUGFeRD (Central User Guide of the Forum for Electronic Invoicing Germany) is a hybrid format that contains both a machine-readable XML component and a visual PDF component. This means that the invoice can be processed electronically and presented in a human-readable form. ZUGFeRD was developed to make using e-invoicing as easy as possible for companies and is particularly suitable for the B2B sector.

Advantages of ZUGFeRD:

  • Hybrid format: The combination of PDF and XML makes ZUGFeRD ideal for both electronic processing and manual checking.
  • User-friendliness: Since the visual representation is included in PDF format, invoices can be easily viewed and checked as usual.
  • Flexibility: ZUGFeRD offers different profiles, such as Basic or Comfort, which can be used depending on the application and requirements.

Summary and Recommendation

It is important for companies to know that from January 1, 2025, only the obligation to receive e-invoices will apply. The formats that can be received by companies are X-Invoice and ZUGFeRD, although most experts believe that the purely XML-based X-Invoice will be used primarily in the B2G sector - i.e. in cooperation with offices and authorities. ZUGFeRD offers a hybrid solution consisting of a human-readable PDF and an embedded XML file, which is ideally suited for the B2B sector.

An obligation to be able to create and send e-invoices will take effect from January 1, 2027 at the earliest, depending on the company’s turnover - for smaller companies (with an annual turnover of less than €800,000) only from January 1, 2028.

GetMyInvoices is a simple solution for receiving e-invoices, archiving them in accordance with GoBD and processing them further. Setting up a GetMyInvoices account means that all of the company’s obligations regarding the introduction of e-invoicing are fulfilled.