E-invoicing obligation – easily solved thanks to ERP

You’ve known it for a long time: since 01.01.2025, the processing of e-invoices in B2B business transactions has been mandatory for all companies in Germany. Mandatory – at first, this always sounds like coercion, prohibition and additional work. But what is quickly overlooked: The e-invoice obligation primarily brings with it a number of simplifications and opportunities.

In particular, companies that meet the legal requirements with an ERP system are among the winners of the transformation. The software not only provides all the necessary technical functions. It also creates immense added value beyond mere legal compliance. Ready to take a positive look at e-billing? Then get started:

Legal basis for e-billing – the most important facts in brief

Which law regulates the e-invoicing obligation?

The German government decided to make e-invoicing mandatory in March 2024 when it passed the Growth Opportunities Act. The government hopes that the digitalization of the invoicing process in B2B business will lead to greater efficiency, cost savings and less VAT fraud.

In addition, the EU-wide VAT in the Digital Age (ViDA) legislative package is being planned, which regulates the sending and receiving of electronic invoices for cross-border transactions. However, this will not come into force until 2028 at the earliest.

Who does the law apply to?

The e-invoicing obligation under the Growth Opportunities Act applies to services between domestic companies (B2B) or between companies and public authorities (B2G). The business partners must be based in Germany.

Exceptions:

• Invoice amounts up to a maximum of 250 euros gross
• Tax-free sales according to §4 No. 8 to 29 UstG
• Invoices for tickets

What exactly is an e-bill?

Previously, electronic invoices included all document formats that were not printed out on paper and sent by post – i.e. also PDF, EDI and IDoc invoices. The definition has been different since January 2025: According to the Growth Opportunities Act, an e-invoice must be issued, transmitted and received in a structured electronic data format. It must also enable electronic processing.

Which formats are permitted?

The data format of an e-invoice must comply with the European EN 16931 series of standards. All other formats will belong to the category of other invoices from 2025.

✓ E-bills are:

• XRechnung – an XML file with purely digital data
• ZUGFeRD – a combination of PDF and XML file
• European invoice formats – e.g. Factur-X in France or Peppol-BIS Billing
• EDI procedure according to EN 16931

✘ No e-invoices are:

• Paper invoices
• File formats with purely pictorial representation, such as PDF, DOCX, JPEG or TIF
• EDI procedure without EN-16931-compliant data formats
• Other formats such as IDoc or in-house formats

When will electronic invoicing be mandatory?

• Reporting date 01.01.2025
  All German companies in B2B business must be able to receive e-invoices and archive them in an audit-proof manner. However, the sending of electronic invoices is not yet mandatory: If the invoice recipient agrees, a company may still send an invoice in another format.

• Deadline 01.01.2027
  Companies with an annual turnover of more than 800,000 euros are obliged to send legally compliant B2B invoices.
• Deadline 01.01.2028
  All companies must send, receive and process e-invoices.

E-invoicing obligation: no problem with an ERP system

The e-invoicing obligation can only be implemented in compliance with the law using software. Gone are the days when you could simply process and manage paper invoices in analog form. Although the word “simple” is rather misleading at this point. Because paper-based document processing is never really uncomplicated.

Anyone who already has a modern ERP system is already in use is basically well equipped. Even if the e-invoice function has not yet been set up, the system changeover can be completed within a few days:

• The ERP provider implements a standard solution,
• integrates the inbox into the process chain,
• sets up the required authorizations,
• explains the most important functions and
• supports you in the training of employees.

Once implemented, the ERP solution offers an extremely useful range of functions for an optimal e-invoicing workflow:

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1. seamless data processing

Until now, processing paper invoices was monotonous, time-consuming and error-prone. Incoming invoices were first manually checked, typed and recorded by employees. They then had to link the documents to the order and goods receipt number, archive the documents and prepare the payments. For outgoing paper invoices, on the other hand, manual invoice creation, printing, enveloping and outgoing mail were among the unavoidable work steps. It is clear that these processes a lot of time, resources and money and money – especially when hundreds of invoices arrived and went out every day.

The digitized process is much simpler via the ERP system:

• The software automatically checks electronic incoming invoices for completeness and accuracy,
• reads out relevant data – such as supplier, amount and invoice number,
• links the documents with the corresponding order and goods receipt number and
• creates and sends outgoing e-invoices directly from the ERP system – based on stored data such as customer addresses and orders.

2. ensure format conformity

As mentioned above, the exchange of e-invoices is only permitted in certain standardized data formats. An ERP system supports all legally prescribed formats such as XRechnung, ZUGFeRD and other European invoice formats. It also offers the option of exchanging e-invoices via EDI. This gives companies maximum flexibility and allows them to respond optimally to the requirements of business partners and authorities.

Data is exchanged as follows:

• The e-invoice is created in the ERP system.
• Conversion into the desired format is carried out either directly in the system, via middleware solutions or via specialized service providers.
• The system sends the invoice to the recipient by e-mail.
• If the required standards change over time, the provider will take care of updating them.

3. audit-proof archiving

Since 2015 the “Principles for the proper management and storage of books, records and documents in electronic form and for data access” – GoBD for short– apply to companies and the self-employed. These state that electronic documents subject to retention requirements – including e-invoices – must be archived in an electronic system in an audit-proof manner for 10 years (commercial and business letters for 6 years). Audit-proof means that the documents must not be alterable.

An ERP system that includes an audit-proof document management system (DMS) fulfills this legal requirement one hundred percent:

• The ERP system automatically saves electronic invoices in a central archive,
• stores e-invoices in an audit-proof and forgery-proof format,
• regulates access authorizations and
• logs any changes.

4. traceability and simplified reporting

With the GoBD, the legislator places further requirements on electronic invoices: They must be verifiable and traceable. There is a good reason for this: authorities require a complete audit of business transactions to ensure compliance with tax and legal requirements. They want to be able to trace how an invoice was created, processed and archived. This enables an efficient tax audit and ultimately reduces tax fraud.

With an ERP system, all business transactions can be audited at any time:

• The software documents every processing step of an e-invoice,
• logs metadata such as date, time and creator,
• performs automatic versioning and
• links electronic documents with accounting transactions.

5. consideration of country-specific requirements

International business relationships present companies with additional challenges. This is mainly due to country-specific legal requirements, such as the format standard, mandatory information or reporting obligations. Some countries require the transmission of e-invoices via special platforms (e.g. SdI in Italy) or the integration of tax authorities. In addition, invoices often have to be issued in the language and currency of the recipient. If companies make mistakes here, there is a risk of fines, additional tax demands or delayed payments.

An ERP solution ensures legal compliance for international business:

• The software supports various international invoice formats such as FacturaE (Spain), FatturaPA (Italy) and Factur-X (France),
• automatically converts amounts into the respective national currency,
• generates e-invoices in the language of the recipient and
• automatically applies country-specific tax rules.

E-bill: More benefit than obligation

As you can see: With an ERP system, implementing the e-invoicing obligation is practically child’s play. But even more important is the realization that by digitizing your invoicing processes, you are not simply complying with an onerous law. Rather, you are improving your entire workflow and increasing your ability to act.

As a result, e-invoicing offers you the following advantages:

• Increased efficiency through faster processing of payment transactions
• Conservation of human resources through automated processes
• Reduced error rate and higher data quality due to fewer input errors
• Greater transparency through better invoice traceability
• Sustainability through significantly lower paper consumption and low CO2 emissions
• Monetary savings through reduced printing, shipping and archiving costs
• Uncomplicated archiving that is fast and space-saving
• Optimized business relationships through smooth, standardized processes

Conclusion: e-bill achieves high added value

With a modern ERP system, the e-invoicing obligation turns from a necessary evil into a huge opportunity. Automated processes not only ensure that you can create, send and receive electronic invoices in compliance with the law , regardless of country-specific requirements. They also mean a move away from slow, expensive and resource-intensive processes that unnecessarily paralyze your company.

By the way: the simpler the interaction with the ERP system, the greater the added value. That’s why we provide simplified and workflow-supported incoming invoice processing in the Flow Mode of APplus 9. This allows you to work even faster, more intuitively and more productively. Digitalization is advancing – with an ERP system, you can easily keep pace.

Status: January 2025