Countdown to e-Invoicing in Germany: Top 10 client questions
With mandatory e-Invoicing getting serious in 2025, one question looms large for finance, procurement, and accounting professionals: Will we be ready? As aftermarket digitalization experts, TecAlliance helps clients not only comply with regulations but also streamline e-Invoicing within their order and supply chain processes. To tackle the complexities ahead, they've gathered the 10 most frequently asked questions from TecAlliance clients. Discover below answers for questions you might also ask yourself.
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Here you go: Your must-know 2025 Q&A guide
1. What happens if we aren’t ready on time?
Mandatory e-Invoicing in Germany is introduced in different phases starting from 1 of January 2025. Depending on the size of your company you must be ready to meet different milestones at certain times. If you aren’t ready on time, you will have to deal with a number of problems:
- Legal risks: Non-compliant invoices (e.g., PDFs) can be rejected, and you could face fines or denial of VAT deductions.
- Payment delays: Invoices that don’t meet the new standards can delay or block payments.
- Operational issues: Manual corrections and increased workload slows down your processes.
- Partner Loss: Business partners may turn to compliant companies.
- Higher Costs: Last-minute implementation leads to increased costs and errors.
In any case, preparing early by adopting a compliant e-Invoicing systems is a good strategy to avoid all the above.
2. What’s changing 2025 with invoicing in Germany?
Thirteen European countries, including Germany, will introduce mandatory e-invoicing in 2025 and 2026, with each country having its own format requirements.
In Germany, from January 1, 2025, recipients must accept electronic invoices if requested by the sender, although sending e-invoices remains optional. This will require adjustments to existing invoice receipt processes and workflows.
PDFs will no longer qualify as electronic invoices; structured formats that comply with the EN-16931 standard, such as CII, UBL, X-Rechnung, or ZUGFeRD, will be required.
Click here to read more.
TecCom e-Invoicing fully supports ZUGFeRD and X-Rechnung.
3. Is my company affected by the e-Invoicing obligation?
Yes, your company receives invoices regularly. As a recipient, you must be ready to process tax-compliant electronic invoices from day one.
If your annual turnover exceeds €800,000, you are required to send e-invoices starting January 1, 2027. Companies with lower turnover must comply by January 1, 2028. Only invoices under €250 and sales of public transport tickets are indefinitely excluded from the e-invoicing mandate.
This reform impacts virtually all German companies and foreign companies doing business in Germany. The timeline for compliance is tight, so swift action is necessary, particularly if your business isn’t yet equipped with e-invoicing software.
Remember:
There is no transition period for receiving invoices. You must be ready by January 1.
4. How can I stay informed about legal requirements and changes for e-Invoicing?
The legal basis for the e-invoicing obligation is the European Directive 2014/55/EU. Germany has implemented the EU requirements through the federal e-invoicing regulation. Additionally, the legislator has made amendments to the German VAT Act (UStG) and the VAT Implementation Ordinance (UStDV) as part of the so-called Growth Opportunities Act.
Here’s a few websites and newsletters which you might find useful to stay-up-to date:
- VAT Update
- Pages from the European Commission (EC)
- German Association for e-Invoicing – VeR Verband – newsletter
- Federal Ministry of Finance for Germany – newsletter
TecAlliance's TecCom sales consultants are, of course, also happy to give you an update anytime. Click here to arrange a call.
Want to stay ahead of the changes? Join the data expert's upcoming webinar on November 28 (in German) for the latest updates
5. When do I need to start the transition to compliant e-Invoicing?
Start now—or as soon as possible. This fundamental change will affect multiple departments, including Accounting, IT, Procurement, and Sales. You’ll need to inform your teams, create a plan, and pinpoint areas that require action. Ideally, involve your suppliers, clients, and employees early to ensure smooth change management.
In TecAlliance's TecCom experience, an e-Invoicing implementation project takes at least 2 months. If IT-integration is required, it takes between 3-5 month.
6. What’s the best approach to get ready in time?
First, assess the gap between your current invoicing process and the upcoming mandatory requirements. Can your existing software generate and send e-invoices in formats like ZUGFeRD 2.X and comply with the German X-Rechnung, which is an extension of the EU standard EN 16931? Can it process incoming e-invoices?
Once you’ve evaluated your system, you can begin preparing for the reform. This involves developing a plan, forming a project team with members from all affected departments, and selecting the right software partner to support your transformation and meet the deadlines.
Early on, involve your suppliers and clients. Inform them when they’ll start receiving e-invoices from you and when you expect to receive them in return.
Finally, with so many stakeholders involved, ensure your employees are well-trained for the transition.
A TecCom GAP analysis is a good starting point. You can reach out to TecAlliance for more information.
7. Which technical requirements does an e-Invoice have to meet?
A tax-compliant e-invoice must:
- Include all mandatory details as required by § 14 (4) of the German VAT Act (UStG).
- Be created in a machine-readable, structured XML format that allows for automatic electronic processing by the recipient.
- Comply with the EU standard EN 16931, or enable the full and accurate extraction of relevant data. Formats like ZUGFeRD and the German extension of the EN 16931 standard, X-Rechnung, meet these requirements, while PDFs or Word documents do not.
PDFs will no longer meet the criteria. As a recipient, you may still receive such invoices, but starting January 1, 2025, if a supplier sends compliant e-invoices, you are required to accept and process them.
As a sender, if your turnover exceeds €800,000, you must send compliant e-invoices from January 1, 2027. For all others, the deadline is January 1, 2028.
As a TecCom client you probably already use TecCom e-Invoicing to send invoices in the formats TXML or PDF. Depending on the set-up, not all your invoice recipients may receive both, some might only receive the PDF invoice. Eventually, receiving only a PDF, will not cover the legal requirements anymore. Check with TecAllianceto find out where you stand and which steps are required next.
8. Are there any e-Invoicing requirements specifically for the aftermarket?
No, there aren’t industry-specific exemptions—e-invoicing requirements apply equally to all sectors. However, having an industry expert can be invaluable, as invoicing is often deeply connected to other order processes. With almost every invoice corresponding to a proof of delivery (DESADV), by providing an complete order-to-invoice workflow, TecCom offers the possibility to validate this dependency between invoice and dispatch notification.
TecAlliance brings 25 years of experience in digitizing supply chain processes with its TecCom product suite, where invoicing has always been a key focus. The company helps clients worldwide achieve efficiency through digital transformation and automation. Its TecCom Order platform facilitates seamless trade for hundreds of suppliers and tens of thousands of buyers.
For TecCom clients, this means they can seamlessly integrate e-invoicing into their ordering processes, connect with invoice senders and receivers globally, and benefit from our extensive experience with IT integration projects. TecAlliance is the ideal e-invoicing partner for the automotive aftermarket—and beyond.
9. How can I tackle e-Invoicing internationally and across all my clients and suppliers?
Germany is just one of many countries transitioning to e-invoicing. To future-proof your business, you need a software solution that offers global coverage—adapting to different countries’ regulations, implementation options, and working seamlessly across platforms.
TecCom e-Invoicing allows you to harmonize all invoice information, whether you are a TecCom sender or receiver, by using a common XML format alongside various other formats. To support compliance, TecAlliance also offers mappings, for example, to and from ZUGFeRD, ensuring local legal requirements are met. This single format serves as a foundation for advanced automation and cost savings. With many suppliers already on the platform, you can connect with all recipients as a sender without needing additional service providers. Learn more.
10. How can I integrate an e-Invoicing solution into my IT-landscape and at what cost?
Integrating a new e-Invoicing solution into your current IT-landscape is a big challenge.
TecCom offers s everal SAP integration scenarios, allowing businesses to use their existing SAP format while leveraging our mapping engine for added value. Many manufacturers face IT challenges when their ERP systems aren’t ready for e-invoices or TXML5.0 formats, but TecAlliance's solutions help bridge these gaps with easy rollout and support.
The data experts recognize that pricing can be a concern for small and medium-sized businesses, so TecAlliance offers flexible options and discounts to make our services more accessible. Wholesalers can benefit from nearly free solutions, achieving significant savings through automated processes.
Contact TecAlliance today for a quote and discover how TecCom can streamline your e-invoicing and order management.
Register for the companies webinar on November 28 (in German) for expert insights.
