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E-Invoicing in Germany: A Focus on B2B Transactions

Electronic invoicing, e-Invoicing, is changing the world quickly. Germany, among many countries, adopted this technology establishing its standard known as XRechnung for Business-to-Government (B2G). Germany asked the European Union to make Business-to-Business (B2B) mandatory. 

Important update: Germany B2B e-Invoicing is planned for 2027

In recent news, the Bundesrat, the German parliament, has officially announced a delay in the implementation of e-Invoicing. The implementation of mandatory e-Invoicing has been postponed until January 2027 for companies with a turnover of more than € 800 000 and until 2028 for companies with a turnover below € 800 000.

However, all businesses are expected to receive e-invoices by January 2025. This means businesses can use e-invoicing voluntarily from 2025.

New timeline for German B2B e-Invoicing.

How exactly will this B2B solution work?

So, you might be wondering, how will this B2B eInvoicing solution work? Well, let’s dive right in!

From the B2B perspective, the German Bundestag is championing the cause of mandatory B2B eInvoicing to tackle VAT fraud head-on. The proposed method is in sync with the European Value-added Tax in the Digital Age (ViDA). This includes the use of the EN 16931 European electronic invoice standard.

Here’s the exciting part: invoice issuers will no longer have to wait for the tax authorities’ approval before sending out an invoice. The ball is now in the court of the trading entities who will be responsible for exchanging and distributing the invoices. And those who are subject to taxation, will need to provide the necessary information (a subset of the invoice) to the tax administration in a structured manner.

This proposal, launched by the Europeans, is set to kick off in January 2026. So, it’s not a matter of if, but when e-Invoicing will become the norm in Germany. The big question on everyone’s mind is: how will SAP, a major player in the digital transformation game, support this shift?

Why would you choose an SAP solution?

SAP brings extensive experience in implementing e-Invoicing across numerous countries. This automated process minimizes errors and ensures compliance, guaranteeing a smoother invoicing workflow. Additionally, SAP’s solution seamlessly integrates with other systems, fostering enhanced efficiency, cost savings, and stronger customer relationships.

Advantages for using SAP:

  1. Efficiency and Cost Reduction: e-Invoicing eliminates paper-based invoices, leading to cost savings and increased efficiency.
  2. Real-Time Tracking: Real-time invoice tracking facilitates faster input tax credit availability.
  3. Reduced Errors: Automation decreases manual data entry errors.
  4. Improved Cash Flow: e-Invoicing enables faster invoice delivery, improving cash flow.
  5. Security: Secure transmission of e-Invoices lowers fraud and data breach risk.
  6. Transparency: e-Invoicing enhances transaction transparency, aiding invoice management.

Germany’s e-Invoicing implementation is a significant stride towards digital transformation. Despite the challenges, the benefits are evident. Companies that embrace e-Invoicing can anticipate enhanced efficiency, cost savings, and compliance. SAP’s solutions can offer valuable support in this digital transition. By leveraging these technologies, businesses can remain competitive in the digital economy.

Why choose PIKON as your partner for your Compliance Project?

At PIKON, we have established a Competence Center for Legal Requirements, where our team of expert consultants stay on top of the latest developments and requirements, e.g. regarding SAP Document Compliance and PEPPOL. We combine our SAP expertise and in-depth knowledge of the legal requirements with experience gained over many projects, to help you with your strategic roadmap to digital transformation and compliance with country-specific legal requirements.

Contact us!

Do you have any questions about e-invoicing in Germany? Reach out! 

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About the author
Myriam Alicata
Myriam Alicata
I am active as a SAP ERP Consultant at PIKON Benelux in Genk, Belgium. My focus is on the SAP SD and MM modules. Within our PIKON group, I am part of the Competence Center for Legal Requirements. With my knowledge and experience gathered through different customer projects, I aim to find the right solution for our customers.

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