The future of invoicing is digital
Digital tools are changing the way companies create and manage e-invoices. By using modern software solutions, the entire process is becoming more efficient and less prone to errors. Automated functions for creating and sending invoices reduce manual intervention and thus minimize the risk of errors. In the best case scenario, these tools enable simple integration into existing systems, making them easier to implement. The user-friendliness of current applications is a priority so that team members without specialist technical knowledge can quickly become familiar with the system. This allows your company to save time and resources while increasing the professionalism of business communication. Another advantage is the ability to keep track of outstanding invoices and payments, which improves liquidity. With the help of digital tools, e-invoicing is then transformed from an obligation into a convenient solution that drives the company forward. This fits in with our credo: rely on sensible digitalization.
What is an e-bill?
No, a PDF is not an e-invoice, that should have gotten around by now. Converting a text file into a PDF or even scanning a paper invoice and sending it as a PDF has nothing to do with the electronic invoice from 2025. The e-invoice is a digital invoice based on a structured data format. It is transmitted electronically, received automatically and processed further. The e-invoice meets the requirements of EU Directive 2014/55/EU and is a proper invoice within the meaning of VAT law (Section 14 UStG).
Structured format means that the invoice information is machine-readable. The XML format (XML stands for Extensible Markup Language) enables a structured presentation of the data. It is not suitable for fast human reading. XML is not a new format; it has been used for more than 25 years in various versions for the platform-independent exchange of data between computer systems, especially on the Internet. An e-book in XML format could, for example, begin with these data lines:
<?xml version=“1.0” encoding=“UTF-8”?> <books> <book> <title>XML for beginners</title>
The e-bill is transmitted electronically directly from the invoice issuer to the invoice recipient. There is no physical transmission - the stagecoach is a thing of the past.
The e-invoice can be imported automatically and without manual processing directly into a company's accounting software for further processing.
Advantages of the e-invoice:
E-billing offers an efficient and transparent way of exchanging and processing invoices between companies. Let's assume that all organizational hurdles have been overcome, all employees have been informed and trained, and the invoicing processes have been converted. Ideally, this will lead to positive results from the company's point of view. The most important advantages after switching to e-billing:
The machine-readable data and automated processes reduce error rates.
The automated processing of data reduces the processing time for an invoice transaction and therefore also the costs.
The e-invoice is transparent, invoice content can be checked and traced. In the B2B sector, e-invoices are issued for all deliveries and services.
E-invoicing will be mandatory from January 1, 2025 for all B2B transactions, i.e. for all transactions between at least two companies, both for domestic companies and for self-employed persons. Transitional arrangements are being discussed for small businesses. Private individuals are therefore not currently affected. Nevertheless, everyone is well advised to familiarize themselves with the basics of the topic. A survey of acquaintances revealed that many are still completely unfamiliar with the topic of e-billing.
Even freelancers, sole traders, start-ups and small businesses who do not yet have to issue e-invoices themselves in 2025 should be able to receive (and read!) e-invoices. An email address is sufficient to receive them. There are free tools for reading e-invoices received in this way. ELSTER (“Your online tax office”), for example. for example, offers free visualization of e-invoices on the portal's website: https://www.elster.de/eportal/e-rechnung
Link tips for further information on the introduction of e-invoicing
All common providers of accounting solutions now offer solutions for issuing and receiving e-invoices. If it is only a matter of receiving e-invoices, there are many free tools that can read out the data and display it in PDF format. The following links provide an introductory overview of the most important tools, requirements and solutions:
Verband der Gründer und Selbstständigen Deutschland e. V., checklist and comparison table: https://www.vgsd.de/checkliste/
Federal Ministry of Finance, questions and answers on e-invoicing: https://www.bundesfinanzministerium.de/Content/DE/FAQ/e-rechnung.html