---
title: Mandatory e-invoicing in Germany 2021 – Who needs to know?
description: XRechnung or ZUGFeRD? E-invoicing is now mandatory for anyone billing Germany's Federal Government. Here's exactly what you need to know | Holvi 2020
---

[Holvi Blog for Makers and Doers](https://blog.holvi.com)

# [Mandatory e-invoicing in Germany 2021 – Who needs to know?](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020)

 Written by [Thomas Schex](https://blog.holvi.com/author/thomas-schex) | 22/10/2020, 10:49

If you’re self-employed and working for Germany’s Federal Government, you’ll have heard of e-invoicing already. How come? Because...

> As of 27 November 2020, the Federal Government will no longer accept paper or PDF invoices.

Yes, ‘XRechnung’ or ‘ZUGFeRd’ invoicing are now mandatory when freelancers and sole traders bill the Federal Government **in amounts over €1,000**. But hold on… what do these terms even mean? 

And, more importantly, what do they mean *for you*?

 

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| --- |

## E-invoicing in Germany – everything you need to know

1. [What is e-invoicing?](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#what-is-einvoicing)
2. [Is e-invoicing mandatory in Germany?](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#is-e-invoicing-mandatory)
3. [Why is this happening? – EU E-invoicing Directive](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#why-is-this-happening)
4. [How do I e-invoice the Federal Government?](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#how-do-i-einvoice-the-gov)
5. [XRechnung or ZUGFeRD? E-invoice formats explained](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#xrechnung-or-zugferd)
6. [How do I create and send e-invoices in Germany?](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#how-do-i-create-einvoices)
7. [How do I store an e-invoice?](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#how-do-i-store-einvoices)
8. [How much will e-invoicing cost?](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#how-much-will-einvoicing-cost)
9. [Glossary of e-invoicing terms](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020?hs_amp=true#glossary)

## What is e-invoicing, anyway?

Electronic invoices are invoices that are issued, transmitted and received in a structured, machine-readable format (using XML file format). This allows for invoice information to be exchanged digitally between companies. The advantage? Huge savings on admin time, and no mistakes. E-invoices can be processed automatically and paid faster.

**An ordinary invoice that you send by e-mail as a PDF is not an e-invoice.**

 

 

## Is e-invoicing mandatory in Germany?

This is today’s \[insert-earnings-figures-here\]-euro question. And the answer? 

> If you have Federal Government clients, then e-invoicing will be mandatory for you as of 27 November 2020.

Other public bodies – such as regional and municipal administrations, energy companies, schools and hospitals – will soon follow, most likely in 2021. But so far no official deadlines have been announced.

Right now, mandatory e-invoicing is being pushed in the B2G (Business to Government) sector. Nevertheless, more corporations and larger companies are making e-invoicing the standard way of collecting earnings. So if you work for these companies – or want to work for them – you may as well familiarise yourself with e-invoicing now. It’s super easy, and we’re here to break it down for you.

## Why is this happening? EU E-Invoicing Directive

Mandatory e-invoicing in the public sector comes off the back of Germany’s adoption of the European Directive 2014/55/EU (or ‘E-Invoicing Directive’), dating from 16 April 2014. Other EU countries have already made this a legal requirement, Germany is just catching up!

> Get with the Rechnungsprogramm, Germany.

The EU expects electronic invoicing to cut costs. Germany alone expects to save 6.5 billion euros per year.

## How do I e-invoice the German Federal Government?

### Manually via the Government's online platform

If you only send a few bills, there’s a manual but time-consuming solution. You can use the Government portal to convert a standard invoice into an e-invoice online. To do this, visit the ‘[Zentrale Rechnungseingangsplattform des Bundes](https://xrechnung.bund.de/prod/authenticate.do)’ (ZRE – yes, that’s some Grade-A German bureaucracy humour for you). In English, that’s the ‘Federal Invoice Receipt Platform’. 

### Or by using e-invoicing software, like Holvi

But if, like us, you hate government portals and find the word ‘Rechnungseingangsplattform’ mildly terrifying – ‘What is it, a platform for gangs?!\*’ – there’s an easier way.

[E-invoicing](https://www.holvi.com/de-en/e-invoicing/) software works just like a normal invoicing tool, except it creates your invoices in machine-readable format. 

*\*Just kidding, obviously we know what this means. We already translated it above!*

 

| **Tip: Choose Holvi Grower for unlimited e-invoicing** With [Holvi Grower](https://www.holvi.com/de-en/grower/), you can create unlimited invoices and e-invoices right in your business account, and send them with a few taps. No extra software, and no messy government portals. All you need to run your B2B, B2C and B2G business, in one place. |
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## XRechnung or ZUGFeRD? E-invoice formats

Look, we feel you. Studying all of Germany’s available e-invoicing formats is mentally taxing, not to mention confusing. Luckily, you don't have to. Here’s all you need to know:

- XRechnung is the Federal Government's preferred format, but
- ZUGFeRD 2.1.1 also meets all the requirements of the EU directive

Holvi supports both formats. So however your recipient chooses to receive your e-invoice, Holvi delivers.

 

| **Tip: Take a break from freelancing** For a fun foray into fantasy, type ‘zugferd’ into Google Translate and imagine your invoices being delivered by horse-drawn carriage! |
| --- |

 

## How do I create and send e-invoices in Germany?

Glad you asked. Exactly the same way you’d create an ordinary invoice with Holvi.

1. Create your invoice
2. Enter your customer's e-invoicing address as the recipient
3. Tick ‘E-invoice’ in sending options
4. Tap ‘Send’

Complex systems are at work behind the scenes – but fortunately, you don’t need to worry about those. As far as you’re concerned, it’s magic. Quick, effortless, payment-collecting magic.

## How do I store an electronic invoice?

A long time, truly. 

The same storage requirements apply as for standard invoices, only reversed. So…

- For 10 years
- In the invoice’s original form – i.e. in electronic format

This means that a paper printout of the electronic invoice is *not* valid.

## How much will e-invoicing cost me?

You might be thinking, ‘This all sounds fine, but how much will it cost me?’ Good news! With [Holvi's Grower plan](https://www.holvi.com/de-en/grower/), you can create unlimited electronic invoices – at no extra cost. 

On top of the [e-invoicing](https://www.holvi.com/de-en/e-invoicing/) feature, you also benefit from a business account built-in [invoicing](https://www.holvi.com/de-en/create-invoices-online/) and [expense management](https://www.holvi.com/de-en/bookkeeping/)tools.

## To sum up – e-invoicing in 2020

- As of 27 November 2020, e-invoicing is mandatory when billing the Federal Government
- If you’re self-employed and work for federal clients, you will **not** be able to send a conventional invoice after
- This should save €6.5 billion in costs per year
- XRechnung is the Federal Government’s preferred format
- The easiest way to write e-invoices is to use e-invoicing software
- You can [create, send and store e-invoices](https://www.holvi.com/de-en/e-invoicing/) easily with Holvi’s business account

 

| **Tip: A useful German resource** For more information (in German), visit the [German Federal Government's e-invoicing page](http://www.e-rechnung-bund.de). |
| --- |

 

## Glossary – e-invoicing terms you’ll forget almost instantly

For those who find this kind of thing fascinating and want to learn more technical terms, here’s our e-invoicing glossary.

### Leitweg-ID

The invoice recipient’s address. The Federal Government and Länder (Austrian states) have agreed on this standardised format. As a freelancer billing the Government, you’ll be informed of the Leitweg-ID in advance.

### OZG-RE

OZG-RE stands for ‘Online Access Act (compliant) Incoming Invoice (platform)’ in English.

You need this platform to send e-invoices manually to authorities of the indirect federal administration and cooperating federal states.

### PEPPOL

This is something like the transmission network for e-invoices. If you use an invoicing tool like Holvi's, your e-invoices will be sent in the background over this network.

### ZRE

The Federal Government’s Central Invoice Receipt Platform. Here you can submit e-invoices manually to institutions of the direct federal administration (e.g. ministries and higher federal authorities).

### ZUGFeRD

Central User Guide of the Forum elektronische Rechnung Deutschland.

### XML

No, this doesn’t mean ‘XRechnung My Life’. XML stands for ‘Extensible Markup Language’. It’s a file format used to exchange data between applications.

### XRechnung

An e-invoice standard with structured XML data. XRechnung was developed on the basis of the European Standard EN 16931.

[View full post](https://blog.holvi.com/mandatory-e-invoicing-in-germany-2020)

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