ZUGFeRD or XRechnung: Which Format Should You Use in Germany?

ZUGFeRD and XRechnung are the two central e-invoicing formats in Germany. Both formats are EN 16931 compliant, but they meet different technical and regulatory requirements, especially in the public sector.

Key Takeaways

• The XRechnung standard is mandatory for B2G invoices (invoices to public authorities).
• ZUGFeRD combines PDF + XML and is particularly suitable for B2B processes.
• Both formats are based on EN 16931 and are machine-readable.
• From 2025, there is an obligation to receive structured e-invoices in the B2B sector.
• The choice of an e-invoicing format depends on the recipient, the level of automation, and the IT infrastructure.

What is ZUGFeRD?

ZUGFeRD is a hybrid electronic invoicing format that combines a visually readable PDF/A-3 file with an embedded structured XML file. The XML data is based on the UN/CEFACT CII syntax and complies with the European standard EN 16931.

ZUGFeRD therefore enables both automated processing by ERP systems and manual review by the user. It is used primarily in the B2B sector because business partners still need a visible invoice without giving up structured data.

Key features of ZUGFeRD:

• Hybrid format: PDF/A-3 with embedded XML
• Syntax: UN/CEFACT Cross Industry Invoice (CII)
• EN 16931 compliant: in the “EN 16931” and “Extended” profiles
• Not mandatory for public authorities unless the format is explicitly accepted.
• Compatible with Factur-X (France)

What is XRechnung?

XRechnung is the German standard format for electronic invoices to public contracting authorities. It is a purely structured XML file without a visual PDF component.

XRechnung is Germany’s Core Invoice Usage Specification (CIUS) under EN 16931 and specifies the European requirements with national mandatory fields for example, the Leitweg-ID for unique assignment by public authorities.

Key features of XRechnung:

• Pure XML format (.xml)
• Syntax: UBL 2.1 or CII
• CIUS of EN 16931 (Germany’s national specification)
• Leitweg-ID mandatory in B2G
• Mandatory for federal authorities since 2020

What formats are available for electronic invoices in Germany?

Germany permits several EN 16931-compliant formats:

• XRechnung (XML-based) – mandatory for public authorities.
• ZUGFeRD (PDF + XML) – common in the B2B sector.
• Peppol BIS 3.0 (UBL-based) – for domestic and cross-border transmission via the Peppol network.

Since the reform introduced by the Growth Opportunities Act, companies must be able to receive structured e-invoices from 2025 onward; simple PDFs no longer qualify as electronic invoices in the legal sense.

Overview: ZUGFeRD vs. XRechnung

The following table shows the key differences between ZUGFeRD and XRechnung:

Which format should you use in Germany?

The choice of an e-invoicing format depends on the use case:

1. Invoices to public authorities (B2G):For federal authorities, XRechnung is mandatory. XRechnung can also be transmitted via Peppol. 
2. Invoices between companies (B2B): Here, ZUGFeRD is often more practical if business partners still require a visually readable PDF file.
3. High level of automation / ERP integration: Choose XRechnung or Peppol BIS if end-to-end automation is the priority.
4. International transactions: The Peppol network offers standardized transmission across national borders.

Conclusion

The choice between ZUGFeRD and XRechnung is not a technical detail question, but a strategic compliance decision. While XRechnung is mandatory in the public sector and offers maximum standardization, ZUGFeRD enables a practical hybrid solution in the B2B environment that combines readability and automation.

With the phased introduction of mandatory e-invoicing through 2028, companies must align their systems early with EN 16931 compliance. Those who adopt a scalable, validation-capable format now reduce later conversion risks, process disruptions, and integration costs.