The countdown is on: Starting January 1, 2025, companies in the B2B sector must be able to receive electronically generated invoices. This change affects all businesses that maintain commercial relationships within Germany. From 2027, e-invoicing will become mandatory for companies generating over €800,000 in annual revenue, and by 2028, this requirement will extend to all companies operating in the B2B sector.
The transition to e-invoicing represents a significant step towards digitalization and increased efficiency in accounting. But what does this change specifically mean for system houses and IT service providers?
Even though it is not yet legally required, it will likely be beneficial in practice to start sending e-invoices as early as 2025. It is expected that large companies will adjust their processes to accept only e-invoices. In the future, business invoices will be issued, transmitted, and received electronically in a standardized format based on the European standard EN16931. This transition not only simplifies the exchange of invoices but also makes it faster, more secure, and cost-effective. Therefore, an early adjustment of your own processes is advisable.
What is an e-invoice?
An electronic invoice, commonly referred to as an e-invoice, is a document created in a structured electronic format that allows for machine processing. This enables automatic handling without manual intervention. In contrast, traditional PDFs or paper invoices will soon be classified as "other invoices," which will no longer meet legal requirements.
As an ITscope user, you are already well-prepared for this transition. The order documents, invoices, quotes, and data sheets generated by ITscope are machine-readable and accessible, some even compatible with the ZUGFeRD invoice format. This means that software can automatically recognize and process the contents of ITscope PDFs. Additionally, the information is accessible to people with visual impairments, as screen readers can read it aloud. This ensures that your invoices meet the new legal requirements and that you can communicate seamlessly with your business partners.
What is the EN 16931 format?
The EN16931 format is a standardized European format for electronic invoices, providing a uniform data structure for invoice exchange. In Germany, XRechnung, ZUGFeRD, and PEPPOL BIS are also approved as compatible formats. These formats facilitate not only national but also cross-border trade within the EU.
The introduction of e-invoicing offers numerous advantages. In addition to reducing paper consumption and the associated environmental impact, it enables faster invoice processing and more efficient accounting. Furthermore, automated data exchange minimizes sources of error, making the entire process more transparent and traceable.
With the introduction of mandatory e-invoicing, Germany is taking a significant step towards the digitalization and modernization of accounting. As an ITscope customer, you can face this change with confidence, as you are already well-equipped to meet the new requirements. Embrace the benefits of digital invoicing and position your company as a leader in efficiency and sustainability.