How to Create e-Invoice in Germany: XRechnung & ZUGFeRD Format

Creating e-invoices in Germany means generating EN 16931-compliant invoice data in XRechnung or ZUGFeRD format so invoices can be validated, exchanged, and archived correctly. Businesses must choose the right format, capture mandatory fields, and use compliant tools or integrated systems.

Key takeaways

• Germany requires businesses to receive structured e-invoices from 2025, with phased issuance obligations starting in 2027 and expanding in 2028.
• XRechnung is XML-only and mainly used for public authorities, while ZUGFeRD combines PDF/A-3 with embedded XML for broader business use.
• A plain PDF is not a compliant e-invoice; mandatory seller, buyer, tax, item, and total data must be structured properly.
• Validation is essential before sending, because missing fields, wrong formats, or incorrect tax calculations can trigger invoice rejection.
• Low invoice volumes are usually handled with web tools or accounting software, while high volumes need ERP integration, automation, and batch workflows.

What Is an E-Invoice?

An e-invoice is a structured, machine-readable XML invoice in XRechnung or ZUGFeRD format that complies with the European EN 16931 standard. It contains all mandatory information as defined data elements and enables automatic validation, posting, and archiving.

E-Invoicing Germany: Mandate and Formats

Germany’s e-invoicing mandate is reshaping how businesses issue and receive invoices. Since 1 January 2025, all businesses established in Germany must be able to receive structured electronic invoices. The obligation to issue e-invoices will apply in phases, starting in 2027 for businesses with annual turnover above EUR 800,000 and extending to all businesses from 2028. 

An e-invoice in Germany is not just a PDF sent by email. It must be a structured, machine-readable invoice that complies with EN 16931 and contains all mandatory invoice data in XML format. 

Basic requirements:

• Mandatory fields: Seller and buyer details, invoice number, invoice date, VAT data, item details, totals
• Compliance: EN 16931 conformity and proper validation before sending
• Archiving: Original invoice format must be stored securely for audit purposes

Accepted formats:

• XRechnung
• ZUGFeRD

ZUGFeRD Format

ZUGFeRD, which stands for Central User Guide Forum Electronic Invoice Germany, is a hybrid e-invoicing format developed by the Forum Electronic Invoice Germany, known as FeRD, and supported by the German Federal Ministry for Economic Affairs and Energy.

The format uniquely combines a human-readable PDF document in the PDF/A-3 standard with an embedded machine-readable XML file. This creates a single file that is suitable both for manual review and for automated processing by accounting and ERP systems.

A ZUGFeRD invoice consists of three integrated components:

• Visual PDF layer: A standardized, professionally designed invoice that can be displayed, printed, and understood without special software.
• Embedded XML data: The complete invoice data set in structured XML form, which accounting software and ERP systems can automatically read and process further.
• Metadata: Document properties that ensure audit-proof long-term archiving and regulatory compliance.

XRechnung Format

XRechnung, where X stands for eXtended, is Germany’s official standardized XML-based e-invoicing format for business-to-government transactions.

It was developed by the Coordination Office for IT Standards, known as KoSIT, and is the mandatory format for all invoices sent to federal and state authorities.

Unlike the hybrid approach of ZUGFeRD, XRechnung consists solely of a pure XML file. It is fully machine-readable and specifically designed for automated invoicing processes in public procurement systems.

Three Ways to Create an E-Invoice

There are three main ways to create an e-invoice, and the right choice depends on invoice volume, technical resources, and how integrated the process needs to be. Smaller businesses usually prefer simple tools, while larger companies often need a more scalable setup.

• Tool-based solution: Best for small and medium-sized businesses that need a fast, simple, and cost-effective way to create compliant e-invoices.
• ERP-based integration: Best for growing companies and enterprises that need a scalable solution connected to finance, billing, and order-to-cash workflows.
• Manual XML creation: Best for developers who need maximum control and have the technical knowledge to work directly with XML schemas and validation tools.

Technical and Compliance Requirements for E-Invoicing

Before creating any e-invoice, whether for a small business or a high-volume operation, certain technical and legal requirements apply in all cases. An e-invoice must contain complete and accurate mandatory information so that an EN 16931-compliant XML structure can be generated. Missing or incorrect information can lead to rejection.

Creating E-Invoices for Low Invoice Volumes: Step-by-Step Guide

For companies with a low monthly invoice volume, usually under 50 invoices per month, manual creation through web-based tools or accounting software is often the most practical solution. In this case, full ERP integration is usually not economically necessary.

Step 1: Select a Suitable Tool

Several cost-effective solutions are available for small businesses- could be you existing accounting or billing software.

Step 2: Create the E-Invoice in a Web Tool

The process is similar with most providers:

• Create a company profile with VAT ID and address
• Enter the buyer profile
• Insert invoice line items, including description, quantity, price, and tax rate
• Review automatically calculated totals
• Select the format, either ZUGFeRD for B2B or XRechnung for B2G
• Download the file or send it directly

Automatically Creating E-Invoices for High Invoice Volumes

Companies with more than 200 e-invoices per month should fully automate their processes. The goal is an end-to-end EN 16931-compliant order-to-cash process with integrated validation, transmission, and archiving.

1. Analyze the System Landscape: Review the ERP or accounting system in use, map the current invoicing workflow, and identify delivery channels such as email, portals, PEPPOL, or API.
2. Choose an Automation Strategy: Select the best setup for the business. ERP extensions support direct XML generation, accounting software offers simpler EN 16931 output, and middleware connects multiple systems.
3. Define Format and Routing Logic: Use XRechnung for public authorities, ZUGFeRD or PEPPOL for domestic B2B customers, and EN 16931-compliant XML such as PEPPOL BIS for EU customers.
4. Implement Batch Processing: Generate invoices automatically from order data, validate the full batch, and send invoices in groups with status tracking.
5. Structure Error Handling: Detect format errors automatically, review business errors manually, and log delivery failures for retransmission.
6. Integrate into Receivables Management: Record delivery confirmations, match incoming payments automatically, and trigger reminder processes through the system.

Avoiding Common Mistakes in E-Invoice Creation

Typical mistakes repeatedly occur when creating e-invoices and can lead to rejections or compliance risks.

• A common misconception is sending a simple PDF file. However, a PDF is not a structured e-invoice within the meaning of EN 16931.
• Choosing the wrong format is equally problematic. For example, if XRechnung is not used for an invoice sent to a public authority, the invoice will usually be rejected.
  • Other frequent errors concern incomplete mandatory details, such as a missing VAT identification number, a non-sequential invoice number, or an omitted service date.
• Missing schema validation is also a significant risk, because every XML file must be checked against the EN 16931 requirements before dispatch.
• Finally, the archiving obligation is often underestimated. The original file, meaning the structured e-invoice, must be stored unchanged and in an audit-proof manner for six to ten years.

Difference in Creating an E-Invoice in ZUGFeRD and XRechnung Format

Creating an e-invoice in ZUGFeRD and XRechnung follows the same starting point: you enter complete invoice data in an EN 16931-compliant tool or system. The main difference lies in how the final invoice file is generated and what buyer-specific requirements must be included. 

Conclusion

The e-invoice is not merely an IT project, but a structural change in financial processes. Companies that adapt their invoicing early to valid EN 16931 structures reduce rejections, accelerate incoming payments, and minimize tax risks.

What is decisive is not only the correct format, but a continuous process consisting of data quality, validation, transmission, and GoBD-compliant archiving. Those who integrate these elements properly create not only compliance security, but also build a scalable order-to-cash process that can withstand future reporting and digital obligations.