Introduction of mandatory e-invoicing from 2025

From 1 January 2025, the e-invoicing obligation for companies in the B2B sector will come into force. The aim is to simplify control and fulfil EU requirements to prevent VAT fraud.

This obligation is based on the Growth Opportunities Act and requires the issuing of electronic invoices (e-invoices) in a structured format that enables electronic processing. An electronic receipt, in accordance with the EU Directive on electronic invoicing (2014/55/EU), is issued and transmitted in a structured format, such as XML. This format can be read and processed automatically by ERP systems. Examples of this are XRechnung and the hybrid ZUGFeRD format. The term 'e-invoice' includes not only invoices, but also credit notes and other document types. It should be noted that sending a PDF invoice by email does not count as an electronic invoice.
 

We summarise the most important points for you:

 

Transition periods for paper invoices: Paper invoices for B2B sales and electronic invoices in other formats will continue to be permitted until the end of 2026. For sales from 2027, paper invoices will remain permitted until the end of 2027. 

1. From 1 January 2025, companies in Germany must be able to receive electronic invoices.
2. From 1 January 2028, e-invoices must be fully compliant with the EN16931 standard.
3. Transitional periods allow invoices in EDI format until the end of 2027 and paper, PDF or JPG invoices until the end of 2026 if the recipient agrees.

 

Technical requirements: An e-mail inbox is sufficient for receiving an e-bill. However, companies can also use other electronic transmission channels such as PEPPOl

 

Retention obligation: E-invoices must be stored in electronic form in accordance with the GoBD (principles for the proper management and storage of books, records and documents in electronic form and for data access).

 

Acceptance obligation from 2025: From 1 January 2025, invoice recipients must accept and process e-invoices without the need for consent. Exceptions apply to receivables under 250 euros and B2C invoices.

 

Compliance with the new requirements: The requirements for e-invoices must be met from 2028. Other invoices, such as pure PDF files, will then be deemed "improper" and will not entitle the recipient to deduct input tax.

 

Solutions for companies

Companies that work with Microsoft Dynamics 365 Business Central and Microsoft Dynamics NAV need solutions for implementing the e-invoicing obligation. Microsoft and third-party providers offer corresponding extensions and apps for sending and receiving e-invoices as XRechnung. The current version of Business Central already offers solutions, which Microsoft lists and explains in this article. For example, you will learn how to set up e-invoices, how to use them in purchasing and sales, how to exchange data electronically and learn about other features relating to e-invoices: Business Central | Microsoft Learn

 

Our recommendation: Customers who use older versions of NAV (currently < NAV 2017) or cannot switch to a solution in a timely manner should agree with their suppliers to continue issuing paper invoices within the transition periods.

Alternatively, our partner Anveo already offers a solution for older versions of Dynamics NAV technically from version 2009 R2 via Anveo EDI. You can find more information here: Anveo E-Rechnung für Microsoft Dynamics Business Central (anveogroup.com)

Based on our experience from numerous projects, we can recommend the Continia Document Capture solution for the receipt and processing (input management) of XRechnungen.

 

In this table you will find a comparison of the solutions of the 3rd party providers anveo, Continia, ForNAV and the Microsoft solution E-Documents in relation to the respective requirements and a cost overview.