Is e-invoicing mandatory in Germany?

Germany is in the midst of an e-invoicing mandate journey which began in 2020 and will complete on 1 January 2028. Focussed on domestic transactions, Germany’s mandates have been phased in by entity type, size and receive/send capability.

Here’s the full timeline:

Since 2020: all German public sector entities must be able to receive e-invoices from domestic suppliers (B2G e-invoicing). Additionally, suppliers to German authorities inHamburg, Bremen, Hessen, Baden-Württemberg, Saarland, Mecklenburg-Vorpommern, Rheinland-Pfalzmust issue e-invoices to these clients. This is due to Germany’s decentralised federal structure which allows each state to make its own rules.

Since 1 January 2025: all German businesses must be able to receive e-invoices (B2B e-invoicing).

From 1 January 2027: German businesses with a turnover exceeding €800,000 (during the 2026 calendar year) must issue bills as e-invoices (B2B e-invoicing).

From 1 January 2028: all German businesses must issue bills as e-invoices (B2B e-invoicing).

So, by 1 January 2028, every B2B and B2G financial transaction within Germany will have to be conducted via e-invoicing.

There are currently no plans in Germany to make e-invoicing mandatory for B2C transactions, invoices under €250, passenger tickets, VAT-exempt sales or inter-EU transactions.

For software companies, the race is on for e-invoicing compliance

At the time of writing, German businesses exceeding the €800,000 annual turnover threshold have just a couple months left to be fully compliant with the country’s e-invoicing mandate from 1 January 2027.

For software and ERP teams, this leaves limited time to design, build, test, and deploy compliant einvoicing capabilities. Even for businesses which have until 1 January 2028 to comply, this is a timeline that needs attention.

Here’s what e-invoicing readiness means for software platforms:

Assessment of current invoicing systems

If current systems are not able to generate and process e-invoices, and transmit them via Peppol, changes need to be made. All financial workflows need to be taken into account.

Ongoing software updates and integrations

To remain compliant with Germany’s e-invoicing legislation, e-invoicing software needs to be kept up to date with ongoing technical changes. It is essential to have a maintenance contract in place to assure this.

Choosing a suitable e-invoicing solution or provider.

Connecting into Peppol requires a certified Peppol Access Point. Software companies can build their own, but this can take up to twelve months and Germany’s e-invoicing mandate is just a couple of months away. The most practical solution is to utilise an off-the-shelf API, such as Flowin.

Factors to look out for when choosing a Peppol Access Point provider include Peppol certification, security and data protection standards, service reliability, integration capabilities, interoperability, scalability, support provision, pricing and ability to handle cross-border invoicing. Flowin has an excellent offering in each of these aspects.

Learn more: How to choose the right e-invoicing provider

Avoid the last-minute scramble. Introduce your clients to e-invoicing now so everybody benefits

Switching to e-invoicing delivers multiple business benefits. The sooner your clients comply with Germany’s e-invoicing mandate, the sooner they’ll start enjoying these.

But it’s not just your clients who’ll benefit from early implementation. It’s in software companies’ interests to get started as soon as possible to manage the workload. Nobody wins when there’s a last-minute scramble to introduce new systems and integrations, with finite availability of suitable technical experts.

Here’s how your customers can benefit from e-invoicing:

Improved efficiency and reduced invoicing errors

With e-invoicing, processes happen automatically with minimal human intervention.

Faster payment processing and better cash flow

E-invoicing can significantly shorten the invoice processing cycle, improving cash flow management and efficiency.

Enhanced security and fraud prevention

E-invoices move from vendor to buyer via a secure network , making it harder for fraudsters to intercept and manipulate them. And because vendors need to satisfy strict requirements and verifications in order to send e-invoices, these cannot be issued from fake accounts.

The clock is ticking to achieve compliance. But with so much to gain, persuading your clients to get on board with e-invoicing now really shouldn’t be a hard sell!

Prioritise e-invoicing now to ensure on-time compliance

The countdown to mandatory e-invoicing for all B2B and B2G transactions in Germany is well underway. If steps have not already been taken to prepare systems for e-invoicing, this needs to be initiated now as a matter of urgency – especially for the businesses which need to comply by 1 January 2027.

For software and ERP teams, this leaves limited time to get things in place.

While a lot of the necessary work – as outlined earlier in this article – cannot be short-cut, the good news is it typically takes no more than a week to implement the Flowin API. With clear documentation, great technical support directly from developers, and a uniquely advantageous pricing structure, Flowin keeps costs down without compromising on standards.

But Flowin is only one component in the project. It is essential to prioritise e-invoicing preparation now to ensure compliance with Germany’s regulations before the 1 January 2027 and 2028 deadlines.

Learn more: Why myKMO implemented Peppol directly

Key takeaways for German software companies

Germany’s B2B e‑invoicing mandate is getting closer by the day. Large businesses must issue e‑invoices by 2027, everyone by 2028. Preparations need to start now to spread the workload.

Peppol will be the prevalent exchange network. But there is not enough time for software companies to build their own Peppol Access points. Connecting via a certified API – such as Flowin – is the fastest route. As well as enabling compliance in time for the deadline, Flowin keeps longterm maintenance manageable.

E‑invoicing brings clear benefits to businesses. Communicating these to your clients should encourage them to get on board, sooner rather than later.