Germany phases in mandatory e-invoicing for all businesses by 2028
Germany has introduced a phased rollout of mandatory electronic invoicing for businesses. The new rules, part of the EU's ViDA package, will gradually require all companies to adopt structured e-invoicing formats by 2028. Smaller firms and those in transition will have extra time to comply. Since January 1, 2025, every company in Germany must be able to receive and process electronic invoices. However, only businesses with annual turnover above €800,000 will need to send them from January 1, 2027. Smaller firms, with turnover below this threshold, have until December 31, 2027, to adapt.
During 2025 and 2026, businesses can still issue paper or PDF invoices via email if the recipient agrees. This flexibility helps ease the shift toward full digital compliance. By 2028, though, all business-to-business (B2B) transactions in Germany must use structured e-invoicing formats like **EN 16931**, **ZUGFeRD**, or **XRechnung**. The rules also allow for unstructured appendices. Companies can attach additional details, such as partial prepayments, to the final electronic invoice. This ensures clarity while maintaining compliance with the new standards. Germany's approach aligns with the EU's ViDA package, adopted in March 2025. The package requires uniform cross-border e-invoicing by July 2030, though some countries, like Poland, use different systems. With its focus on **EN 16931**, Germany could become a leader in standardised digital invoicing across Europe.
The transition to mandatory e-invoicing will unfold in stages, giving businesses time to prepare. Larger firms must comply sooner, while smaller ones benefit from an extended deadline. Once fully implemented, the system aims to streamline invoicing and improve cross-border trade efficiency.
