The e-invoicing process in Germany:
- Invoice creation: Invoices must be generated in formats compliant with the EN 16931 standard, such as XRechnung or ZUGFeRD. Hybrid PDF/A3 formats with embedded XML are allowed, but plain PDFs without structured data will no longer be accepted.
- Submission: E-invoices will be sent directly to recipients via e-mail, electronic interfaces, or customer portals. The obligation for all companies to receive e-invoices takes effect on January 1, 2025.
- Validation: Submitted invoices will be verified for compliance with EN 16931 requirements and VAT regulations. For hybrid formats, the structured data portion (XML) must take precedence over the visual representation.
- Processing: E-invoices will be integrated into company and tax systems for efficient processing, VAT reporting, and ensuring regulatory compliance.
Archiving: All e-invoices must be archived for a minimum of 10 years in line with German tax law. Companies providing VAT-exempt services are also required to store e-invoices in compliance with these regulations.