What Is an E-Rechnung? German E-Invoicing Guide

An E-Rechnung is not a standard PDF but a structured, machine-readable invoice. Learn why every German business needs to become E-Rechnung-ready and how to prepare.

An E-Rechnung is an invoice issued, transmitted and received in a structured electronic format that software can read and process automatically. It is not a standard PDF and it is not a scanned paper invoice.

The short answer: every business in Germany needs to become E-Rechnung-ready. Businesses have generally had to be capable of receiving E-Rechnungen since 1 January 2025. Mandatory issuance is expanding in stages, and by 2028 structured e-invoicing becomes the standard for domestic German B2B invoicing.

An E-Rechnung is therefore more than a new file type. It permanently changes how businesses create, send, receive, check, process and retain invoices.

This guide explains Germany’s rules. It does not describe the separate e-invoicing regimes that may apply in other countries.

Key E-Rechnung answers at a glance

What is an E-Rechnung? A structured, machine-readable invoice that software can process automatically.
Is a PDF an E-Rechnung? No. A standard PDF does not contain structured invoice data.
Who needs E-Rechnung capability? Every German business needs to be able to receive and handle E-Rechnungen reliably.
When does the mandate apply? Receipt since 2025, phased mandatory issuance from 2027, and the general domestic B2B standard from 2028.
Which formats are common? XRechnung and ZUGFeRD are the main formats used in Germany.
What must businesses do? Establish a professional process for creation, receipt, validation, processing and retention.

E-Rechnung explained: what does the term mean?

Under Section 14 of the German VAT Act (Umsatzsteuergesetz or UStG), an electronic invoice is an invoice issued, transmitted and received in a structured electronic format that enables electronic processing.

“Structured” means that the invoice information is stored in clearly defined data fields, rather than appearing only as text positioned on a page. Compatible accounting software can identify, for example:

the supplier and customer,
the invoice number and invoice date,
the date on which the supply was made,
individual goods or services,
net, VAT and gross amounts,
payment terms and payment information.

Because each value has a defined meaning, the recipient’s system can import and process the information without somebody retyping it or relying on optical character recognition.

Not every XML file is automatically a compliant E-Rechnung. The syntax, structure and invoice data must meet the relevant technical and German VAT requirements.

Why is a PDF not an E-Rechnung in Germany?

A standard PDF can be perfectly readable to a person. To accounting software, however, it is usually just a visually designed page. The system cannot reliably determine which text is the invoice number, the VAT amount or the supply date without additional extraction or manual work.

Since 1 January 2025, German VAT law distinguishes between:

E-Rechnung: a structured electronic invoice that enables electronic processing;
other invoice (sonstige Rechnung): a paper invoice or an unstructured electronic document, including a standard PDF.

This does not mean that every PDF invoice has been prohibited since 2025. PDFs can still be used during statutory transition periods and in specified exceptions. But a permitted PDF remains an “other invoice”; it does not become an E-Rechnung.

Renaming a PDF, scanning a paper invoice, taking a photograph, or exporting a Word or Excel document as a PDF does not create an E-Rechnung. The decisive element is valid, structured invoice data.

ZUGFeRD is an important exception to the simple “PDF is not an e-invoice” rule. A ZUGFeRD invoice can qualify because it embeds structured XML data inside a PDF/A-3 document. The visible PDF helps people read the invoice, while the XML contains the data used for electronic processing. If the two layers differ, the structured data is authoritative under the current German rules.

Which E-Rechnung formats are used in Germany?

The two best-known German formats are XRechnung and ZUGFeRD. Both can satisfy the VAT requirements when the correct version, profile and content are used.

XRechnung

XRechnung is a structured, XML-based invoice format. It generally does not include a conventionally designed PDF view. The format was established particularly for invoicing German public-sector customers and implements the European EN 16931 standard for the German context. Suitable viewer software can turn the XML data into a human-readable view.

ZUGFeRD

ZUGFeRD combines a human-readable PDF/A-3 document with embedded structured XML invoice data. It can make the transition easier for businesses because employees can continue to view a familiar PDF while software processes the XML. According to the current German Federal Ministry of Finance guidance, ZUGFeRD versions from 2.0.1 generally meet the VAT requirements, except for the MINIMUM and BASIC-WL profiles.

Which format should a business choose?

The answer depends on the recipient, the transaction and the systems used by both parties. Invoices sent to public authorities are also subject to separate B2G rules, transmission portals and, where applicable, a Leitweg-ID. A Leitweg-ID is generally not required for ordinary B2B invoicing.

How does an E-Rechnung work in practice?

A complete E-Rechnung workflow involves more than attaching a file to an email:

Create: Complete invoice data is entered in a suitable system and exported in an accepted structured format.
Validate: The system checks the format, mandatory fields and logical relationships for technical or content errors.
Transmit: The invoice is sent by email, an interface, a shared storage location or a portal.
Receive and display: The recipient accepts the file and, where needed, uses a viewer to make the structured data readable to a person.
Check and process: The invoice data is reviewed, approved and transferred to accounting or payment processes without avoidable manual entry.
Retain: The original structured component is stored intact, retrievable and for the required retention period.

German VAT law does not prescribe one single transmission channel for domestic B2B E-Rechnungen. Email can be sufficient. The important points are that the correct file reaches the recipient and that the business can handle it reliably afterwards.

Why is Germany introducing mandatory e-invoicing?

According to the current guidance from the German Federal Ministry of Finance, the E-Rechnung is intended to accelerate business digitalisation and make accounting processes more efficient. When invoice data is supplied in a structured form, the recipient does not need to enter the same information again.

Structured e-invoicing can help businesses:

reduce duplicate data entry,
detect calculation and transmission errors earlier,
review and approve invoices faster,
automate accounting workflows,
speed up payment processes,
transfer consistent data between systems.

The E-Rechnung is also intended to provide a technical foundation for a future transaction-based reporting system through which certain invoice information could be reported electronically to the tax authorities. That reporting system is not part of the current E-Rechnung obligation and will require additional legislation.

The change is therefore not a temporary exercise in converting one document format into another. It is a long-term move from document-based invoicing to data-based invoicing.

Who needs an E-Rechnung in Germany?

The clear answer is: every business in Germany needs to prepare for E-Rechnung. This applies to freelancers, self-employed professionals and small businesses as well as medium-sized and large companies.

Since 1 January 2025, businesses established in Germany have generally had to be capable of receiving E-Rechnungen. This includes businesses using the German Kleinunternehmer scheme. An email inbox can be sufficient for basic receipt, but it does not provide a complete workflow: XML files still need to be displayed, assigned, checked and retained in their original structured form.

Mandatory issuance is expanding in stages. E-Rechnung is therefore not a specialist requirement for large finance departments; it is the new invoicing standard that every German business must prepare to handle.

When must German businesses issue E-Rechnungen?

Germany is introducing mandatory issuance in stages:

Until 31 December 2026

All invoice issuers may still use an “other invoice” for affected transactions. Paper invoices remain possible during this period. A standard electronic format such as PDF can be used only with the recipient’s consent.

From 1 January 2027

Businesses whose prior-year turnover exceeded €800,000 must generally issue E-Rechnungen for affected domestic B2B transactions. Issuers with prior-year turnover of no more than €800,000 can use the transition rule until the end of 2027.

From 1 January 2028

Once the transition periods end, E-Rechnung issuance is generally mandatory for affected transactions between businesses established in Germany, regardless of turnover.

Limited exceptions remain for particular invoice types, including certain B2C transactions, low-value invoices and supplies made by Kleinunternehmer. These exceptions do not change the practical conclusion: every German business needs a reliable E-Rechnung process. Invoices to German public authorities are also governed by separate B2G rules.

What should businesses do now?

An email address by itself is not a complete E-Rechnung process. A business should review the workflow from creation through retention:

Receipt: Can the business securely receive XRechnung and ZUGFeRD files?
Display: Can the responsible employees read XML invoices reliably?
Validation: Can format errors, missing required fields and inconsistent amounts be identified?
Creation: Can the current system generate valid E-Rechnungen rather than ordinary PDFs?
Recipient requirements: Is the correct format and transmission route known for each customer?
Processing: Can structured data move into accounting without unnecessary manual work?
Retention: Is the original structured component kept complete, intact and retrievable?
Responsibility: Is it clear who handles errors, rejections and invoice corrections?

For German VAT purposes, incoming and outgoing invoices generally have to be retained for eight years. For an E-Rechnung, at least the structured component must be kept intact in its original form. A printout or a newly generated PDF view does not replace the original structured file.

Why businesses need professional E-Rechnung support

Businesses need a professionally configured process for the transition. Adding the words “E-Rechnung” to an existing PDF template or exporting a Word invoice as a PDF is not enough.

A reliable process must bring together several tasks: generate the correct format, include all required information, validate files, make XML data readable, follow recipient-specific requirements and retain originals correctly. Problems inside a structured file may not be visible to the human eye and can cause an invoice to be rejected technically or classified as an “other invoice”.

Professional support is therefore the safest and most efficient route for most businesses. Depending on the company, that may include suitable E-Rechnung software, a properly configured accounting workflow and qualified advice for individual tax questions.

The key E-Klar recommendation

Do not treat E-Rechnung as a file-conversion problem. The important question is not, “How do we turn our PDF into XML?” It is: “How do we ensure that correct invoice data moves reliably through our entire process, from creation to retention?”

Changing the output format alone does not digitalise an invoicing process. Connecting creation, validation, receipt, approval and retention creates a workflow that continues to work as invoice volumes grow.

A professional solution should help a business to:

create and receive XRechnung and ZUGFeRD invoices,
turn structured data into a clear human-readable view,
identify technical errors before an invoice is sent,
organise incoming and outgoing invoices consistently,
retain original files securely and traceably,
integrate the new process into everyday work without unnecessary complexity.

This is where E-Klar is focused: making German E-Rechnung processes understandable, secure and clear, so businesses can spend less time worrying about invoice technology and more time on their work.

Frequently asked questions about E-Rechnung in Germany

Is a PDF invoice an E-Rechnung?

No. Since 1 January 2025, a standard PDF without structured invoice data has not qualified as an E-Rechnung under German VAT law. It is an “other invoice”. A ZUGFeRD document can qualify because it contains structured XML data embedded in a PDF/A-3 file.

Can businesses still send PDF invoices in 2026?

Yes. Under the general transition rule, invoice issuers may use “other invoices” until 31 December 2026. The recipient must consent to an unstructured electronic format such as PDF. The permitted PDF nevertheless remains an “other invoice”, not an E-Rechnung.

Must every German business receive E-Rechnungen?

Yes. Businesses established in Germany have generally had to be able to receive E-Rechnungen since 1 January 2025. This includes freelancers, self-employed professionals and Kleinunternehmer. Mandatory issuance is expanding in stages through 2028.

Do Kleinunternehmer need E-Rechnungen?

Businesses using the German Kleinunternehmer scheme must be able to receive E-Rechnungen. Under the current rules, their own supplies are exempt from mandatory E-Rechnung issuance. If the business moves to standard VAT treatment, the issuance obligation may apply when the remaining conditions are met.

What is the difference between XRechnung and ZUGFeRD?

XRechnung is a structured XML format without a conventional PDF view. ZUGFeRD combines a readable PDF/A-3 document with embedded XML data. Either can qualify as an E-Rechnung when its version, profile and content meet the requirements.

Can an E-Rechnung be sent by email?

Yes. German VAT law does not prescribe one transmission method for domestic B2B E-Rechnungen. Email, an interface, shared storage or a download portal may be used. Separate portal rules can apply when invoicing public authorities.

Do businesses need special E-Rechnung software?

In practice, businesses need a suitable solution to create, display, validate, process and retain structured invoice data reliably. An email inbox can cover basic receipt, but it does not replace a complete E-Rechnung workflow.

How long must an E-Rechnung be retained in Germany?

Incoming and outgoing invoices generally have to be retained for eight years for VAT purposes. At least the structured component of an E-Rechnung must remain intact in its original form.

Do Germany’s rules apply to a foreign business?

The domestic B2B mandate generally applies when both supplier and recipient are established in Germany or in one of the territories treated as domestic for this purpose. A German VAT registration alone does not necessarily make a foreign business “established” in Germany. Cross-border and permanent-establishment questions should be reviewed for the specific transaction.

Conclusion: an E-Rechnung is a new process, not just a new file

An E-Rechnung is not a PDF with a different name. It is a structured data record that makes invoices machine-readable and enables automated processing. The change affects the entire lifecycle of an invoice: creation, transmission, review, processing and retention.

Mandatory issuance is being phased in, but the transition is already under way. Businesses established in Germany generally need to be capable of receiving E-Rechnungen now and should ensure that their processes are ready for creation, validation and retention as well. With a professionally configured system, a technical and regulatory task becomes a clear, manageable business process.

Information current as of 1 September 2026. This article provides general guidance on E-Rechnung requirements in Germany and is not a substitute for tax or legal advice on an individual case.

What Is an E-Rechnung? Germany’s E-Invoice Explained