Germany’s E-invoice Mandate: Why It Matters — and Why It’s Strategic

As Europe’s largest economy, Germany often ends up setting the tone for how digital standards evolve across the region. Its new mandate for business-to-business (B2B) e-invoicing is no exception. The attention it’s getting isn’t just about the rules themselves, but about how Germany is approaching flexibility, standardization, and the long-term shift toward real-time tax reporting. 

A More Flexible Path to E-invoicing 

Several EU countries have already adopted strict, centralized systems for e-invoicing. Germany, however, is taking a more open, market-friendly route. Companies can choose how they exchange e-invoices, as long as their invoices follow the European standard EN 16931 (or an equivalent structured format). 

The intention behind the mandate is clear: keep businesses running smoothly, support digital transformation, and lay the groundwork for the upcoming EU-wide VAT in the Digital Age (ViDA) reforms — not just tighten tax oversight. 

Key Milestones and Transition Timeline 

Germany is rolling out the mandate gradually, so companies have time to adapt: 

January 1, 2025: 

All businesses must be able to receive EN 16931-compliant e-invoices. 

January 1, 2027: 

Businesses with more than €800,000 in annual revenue must begin issuing compliant e-invoices. 

January 1, 2028: 

All remaining companies must shift fully to EN 16931-compliant e-invoices. Paper invoices or unstructured formats (like simple PDFs) can still be used — but only if the recipient explicitly agrees. 

What’s Included — and What Isn’t 

Covered by the mandate: 

• Domestic B2B invoices issued by businesses established in Germany.
• Structured formats that align with EN 16931, such as XRechnung and ZUGFeRD.
• B2G e-invoicing is already mandated since 2020, so this is mainly an expansion into B2B. 

Not covered (for now): 

• B2C invoicing — consumers aren’t part of this mandate.
• A single national portal — Germany is keeping the exchange model decentralized.
• Cross-border invoices are not subject to the same rules yet.

Why This Matters for Businesses 

The mandate is both a compliance requirement and a chance for companies to modernize. 

• Many businesses in Germany still rely heavily on paper, email PDFs, or fragmented EDI setups. E-invoicing forces long-overdue upgrades.
• Standardized, structured data means less manual work, fewer errors, and faster processing. Properly implemented, e-invoicing can cut costs by 60–80%.
• Moving early puts companies ahead of future ViDA-related reporting requirements, which will likely involve real-time or near-real-time transaction data. 

Key Challenges to Solve Early 

ERP and systems readiness: 

Most companies will need updates to generate, send, receive, and archive structured e-invoices. 

Data quality: 

EN 16931 has strict field requirements. Ensuring consistent data, correct format versions, and partner compatibility takes effort. 

Supplier–buyer dynamics: 

Historically, buyers dictated formats. Going forward, suppliers can issue compliant invoices without asking — a major process shift. 

Managing the transition: 

Paper, PDFs, and structured formats will coexist for a while, which may create more complexity before it simplifies. 

EDI and cross-border workflows: 

Existing EDI systems or international supply chains must be checked for EN 16931 compatibility. 

Practical Next Steps for Companies 

1. Assess your current setup 

Review your invoicing workflows, AP/AR processes, and archiving rules to see what already supports structured e-invoicing. 

2. Identify the gaps 

Compare your formats (paper, PDF, EDI) to EN 16931 and determine what needs to change. 

3. Upgrade your systems 

Ensure your ERP or accounting tools can generate formats like XRechnung or ZUGFeRD and connect to your preferred exchange channels. 

4. Talk to your partners 

Align timelines with your customers and suppliers, coordinate testing, and set expectations early. 

5. Train your teams 

Finance, operations, and IT all need to understand the new processes, data requirements, and audit-trail rules. 

6. Use the transition period wisely 

Test sending and receiving e-invoices now. Track errors, partner readiness, and process improvements — and make adjustments before deadlines hit. 

The Bottom Line 

Germany’s B2B e-invoicing mandate might seem slow and phased in — with receipt obligations starting in 2025 and full issuance kicking in by 2027/2028 — but the pace is deliberate. It gives businesses room to adapt while still setting clear rules, and it positions them early for the EU’s next big move toward fully digital tax reporting. 

For businesses operating in Germany, the move to structured e-invoicing isn’t just about compliance. It’s an opportunity to modernize processes, streamline operations, and prepare for the broader digital tax landscape ahead. The transition period is here — and the sooner companies start, the smoother (and more beneficial) it will be. 

GEP is ready to help your organization get ahead of Germany’s e-invoice mandate. Our solutions make it easy to send and receive fully compliant e-invoices without disrupting your existing processes. You can keep using the formats you work with today — we’ll convert them into approved standards like XRechnung or ZUGFeRD and deliver them through Peppol or directly to public-sector portals. We also handle validation, tracking, and even offer print options during the transition period. 

On the receiving side, GEP brings all your incoming invoices into one streamlined workflow. You can receive structured e-invoices through networks like Peppol, while still taking in PDFs or paper for now — with automated data capture to help you move smoothly toward full compliance. Secure archiving and audit-ready documentation are part of the package as well. 

Beyond invoicing, GEP supports the digital exchange of a wide range of supply chain documents, helping you strengthen automation and reduce manual work across both O2C and P2P processes. It’s a practical way to stay efficient, compliant, and ready for Germany’s phased rollout of mandatory e-invoicing.