XInvoice

XRechnung: Legal background

On which law is the XRechnung based?

On April 16, 2014, the European Parliament and the Council of the European Union adopted EU Directive 2014/55/EU. This directive obliges all contracting authorities in the EU to accept and process electronic invoices. The aim was to simplify cross-border business processes, reduce costs and promote the digitalization of public administration.

In this context, the European Committee for Standardization (CEN) was commissioned to develop a European standard for electronic invoicing: the EN 16931 standard, which was published in 2017. Among other things, it states that an e-invoice must be created in the structured and machine-readable XML data format.

However, there are also country-specific requirements, which in Germany, for example, result from the Federal E-Invoicing Ordinance (E-RechV). To implement these, each country defines its own Core Invoice Usage Specification (CIUS). The XRechnung standard is therefore the national implementation – the CIUS – of the EN-16931 standard in Germany. The standard adds 21 national business rules to the EU standard.

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Who must be able to create and receive an XRechnung?

Clients and contractors in the public sector in Germany:

• All federal administration authorities have had to be able to receive and process an XRechnung since 27.11.2019.
• Alle Auftragnehmer staatlicher und kommunaler Behörden stehen seit dem 27.11.2020 in der Pflicht, nur noch elektronische Rechnungen im Standard XRechnung auszustellen. Allerdings ist es mittlerweile auch erlaubt, ein anderes Rechnungsformat zu benutzen, das mit den gesetzlichen Anforderungen konform ist – beispielsweise ZUGFeRD Version 2.2.0 im Profil XRECHNUNG als rein strukturierte XML-Datei.

companies in B2B business transactions:

• According to the Growth Opportunities Act, all German companies have been obliged to receive e-invoices and archive them in an audit-proof manner since 01.01.2025 – including XRechnungen. From 01.01.2028, they must also be able to create and send e-invoices.
• For companies with an annual turnover of over 800,000 euros , sending an e-invoice will be mandatory from 01.01.2027. However, the following also applies in the B2B sector: invoices do not necessarily have to be issued in XRechnung format, but can also be issued in ZUGFeRD format.

Technical basics of XRechnung

How is an XRechnung designed?

An XRechnung basically contains all mandatory and optional details that are also listed in other invoices. This includes, for example

• the data of the invoice recipient and the invoice issuer,
• the individual invoice items,
• the invoice amount and
• the payment information.

However, the XRechnung is implemented purely as a semantic data format and is therefore not suitable for visual inspection. It therefore does not allow a visual representation like a PDF, but must be processed by special software. Automatic validation plays an important role in ensuring that no errors creep into the code.

The XML structure ensures that all data is standardized and clearly interpretable, so that automated machine processing is possible without media discontinuity. CII (UN/CEFACT Cross Industry Invoice) and UBL (Universal Business Language ISO 19845) are permitted as syntax. The development and operation of the standard is carried out by KoSIT – the Coordination Office for IT Standards.

Software tools for the XRechnung

ERP system

An ERP system is mainly advantageous for large and medium-sized companies that process dozens of invoices every day. The software not only allows automated invoice creation in XML format. It also handles the automated dispatch, processing, checking and posting of incoming invoices. In combination with a document management system (DMS), it also enables archiving in accordance with legal requirements.

Accounting software

An accounting solution can be particularly useful for smaller companies that only send a few invoices on a regular basis. Such software supports the manual creation and dispatch of XRechnung invoices. It also offers functions for the automatic validation and processing of incoming invoices.

Web portals of the federal government

For small companies, federal web services offer the option of creating and uploading XRechnung invoices manually and transmitting them to a contracting authority. These include the invoice receipt platforms ZRE and OZG-RE.

Online generator

There are numerous websites on the Internet that provide simple generators for creating XRechnung invoices. However, these tools are only recommended for occasional use in the B2B sector.

Document management system (DMS)

Document management systems (DMS) have proven their worth in larger companies for archiving XRechnung invoices. These systems enable the audit-proof and long-term storage of invoices in accordance with the principles for the proper management and storage of books, records and documents in electronic form (GoBD).

What is the Peppol network?

Contracting authorities are often obliged to receive XRechnung invoices via the Peppol network. Peppol (Pan-European Public Procurement OnLine) is a transmission channel that ensures the secure, standard-compliant and automated exchange of XRechnung invoices and other digital documents. Peppol was originally developed by the EU Commission for public procurement. Today, Peppol is also increasingly being used in the B2B sector.

Contractors are generally entitled to send e-invoices to the recipient by email or via a web portal. However, Peppol is the only transmission channel that enables machine-to-machine (M2M) automation and the mass export of electronic invoices.

To connect to the Peppol network, a company needs a connection to a Peppol access point. This is usually provided by an external service provider. If the access point has a suitable interface, Peppol can even be integrated into the ERP system.

Advantages of the XRechnung

Time saving

Thanks to the structured XML format, invoices can be imported directly into IT systems and processed automatically without media disruptions. This reduces the manual effort required for data entry and speeds up the processing of invoices.

Cost savings

Die Nutzung der XRechnung reduziert Papier-, Druck- und Portokosten, da der Rechnungsversand vollständig digital erfolgt. Zudem entfallen aufwändige manuelle Prüfungen und Archivierungsprozesse, wodurch Unternehmen langfristig Geld sparen.

Error reduction

The automated validation of invoice data means that errors, such as incorrect amounts or missing information, are detected at an early stage. This leads to higher data quality and minimizes the risk of queries or rejected invoices.

Compliance with legal regulations

Today and in the future, all authorities, companies and organizations are affected by the e-invoicing obligation. By using the legally compliant XRechnung standard, clients and recipients automatically meet the legal requirements.

More transparency

All invoice information is clearly defined and easy to understand. This means that companies and authorities can quickly find and track invoices and compare them with orders or purchase orders.

Future security

The European standard EN 16931 standardizes electronic invoicing within the EU in the long term. With XRechnung, companies are therefore optimally prepared for future requirements – even in international business transactions.

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