E-Invoice Obligation: These Exemptions Apply in 2026

The e-invoice obligation has raised many questions since the start of 2025. The key distinction first: since 01.01.2025, every domestic business must be able to receive structured e-invoices – there is no exemption from this. The obligation to issue them, by contrast, comes with several exemptions and generous transition periods. This guide explains precisely who may still write a paper or PDF invoice, when, and what you must still observe despite an exemption.

What an e-invoice actually is

In the legal sense, an e-invoice is not simply a PDF sent by email. It must be issued, transmitted and received in a structured electronic format that allows automatic processing and complies with the European standard EN 16931. In Germany, two formats mainly meet this requirement:

• XRechnung – a pure XML format, widely used in public-sector procurement.
• ZUGFeRD (from version 2.x, EN-16931-compliant profiles) – a hybrid format combining a PDF/A-3 file with embedded XML data. A human sees a familiar PDF while the software reads the structured data.

A classic PDF without embedded XML, or a scanned paper invoice, counts instead as an "other invoice" – precisely not an e-invoice. This distinction is the core of every exemption that follows: wherever the e-invoice obligation does not apply, the "other invoice" in paper or PDF form remains permissible.

The transition periods (the most important exemption)

The most practically relevant relief is time-based. Although e-invoicing will in principle become mandatory in B2B, staggered transition rules apply:

• Until 31.12.2026: All businesses may continue to issue paper or PDF invoices for B2B sales – but only with the recipient's consent.
• Until 31.12.2027: For businesses with a prior-year turnover up to 800,000 €, this relief is extended. They too may still use paper or PDF, provided the recipient consents.
• From 01.01.2028: Issuing structured e-invoices becomes fully mandatory in B2B.

These deadlines apply only to issuing. By contrast, you must have been able to receive since 01.01.2025 – with no transition period at all. In practice, an email inbox that can accept XRechnung or ZUGFeRD files is already enough; expensive specialist software is not strictly required just to receive. What matters is that you can read, process and archive incoming structured invoices in an audit-proof way.

Note too that the recipient's consent to a paper or PDF invoice can be implicit – for example, by accepting and paying a PDF invoice without objection. However, if the recipient expressly requests an e-invoice, you should comply where you are technically able to do so.

Exemption 1: B2C – invoices to private customers

The e-invoice obligation applies only to B2B, i.e. transactions between domestic businesses. Invoices to private individuals (B2C) are explicitly exempt. Anyone selling mainly to end consumers – such as tradespeople with private clients, retail or hospitality – is not affected here and remains free to choose between paper, PDF or a voluntary e-invoice.

Important: as soon as a business customer is involved, the B2B logic with the deadlines above applies again. What is decisive is whether the recipient obtains the service for their business. Mixed cases – such as a freelancer buying partly privately, partly for business – should be treated as B2B when in doubt, to stay on the safe side.

Exemption 2: Small-amount invoices up to 250 € gross

Invoices up to 250 € gross count as small-amount invoices under §33 UStDV and are exempt from the e-invoice obligation. They may therefore still be issued as paper or PDF documents – with the simplified mandatory fields.

Worked example: An IT service provider issues a business customer an invoice for 200.00 € net. With 19 % VAT, this gives:

• Net: 200.00 €
• VAT (19 %): 38.00 €
• Gross: 238.00 €

Since the gross amount is below 250 €, this invoice is a small-amount invoice and not subject to the e-invoice obligation. At 250.01 € gross and above, it falls back under the normal B2B rules. What always matters is the gross amount – the amount including VAT, not the net amount. You can quickly check the exact gross or net amount with our VAT calculator, and create the finished invoice with our invoice generator.

A note on scope: the 250 € threshold is a pure amount limit. You may not artificially split a single service into several small-amount invoices to circumvent the e-invoice obligation – the tax office would treat this as abusive structuring.

Exemption 3: Certain tax-free services under §4 UStG

Services that are tax-free under §4 No. 8 to 29 UStG are also exempt from the obligation to issue an e-invoice. These include, among others:

• certain financial and insurance services,
• the letting and leasing of real estate,
• medical and healthcare services,
• services provided by educational institutions.

For these transactions there is in principle no obligation to issue an invoice at all; accordingly, they need not be created as e-invoices either. If you nonetheless issue an invoice voluntarily, the format is freely choosable.

Note the distinction: tax-free supplies under §4 No. 1 UStG (e.g. intra-Community supplies) are not part of this exemption – the e-invoice obligation may well apply here, provided both parties are established domestically and a B2B transaction is involved.

Exemption 4: Foreign cases

The e-invoice obligation requires that both parties are established domestically. Invoices to foreign recipients – whether within the EU or in third countries – are therefore exempt from the domestic e-invoice obligation. Here the rules of the recipient's country or separate EU requirements may apply instead.

What matters is being established in Germany, not merely holding a German VAT ID. A business established abroad with a German registration generally does not trigger the obligation. Be aware, however, that at EU level the "VAT in the Digital Age" (ViDA) initiative plans further requirements for electronic invoicing in cross-border trade. Anyone who regularly invoices into other EU countries should keep an eye on these developments.

Special case: small businesses under §19 UStG

Small businesses (Kleinunternehmer) occupy an intermediate position. The thresholds since 2025: prior-year turnover must not have exceeded 25,000 € and current-year turnover must not exceed 100,000 €.

• Receiving: Small businesses too must be able to receive e-invoices since 2025 – no exemption here.
• Issuing: For their own sales, which are tax-free under §19 UStG, small businesses are exempt from the obligation to issue e-invoices. They may continue to use paper or PDF but can issue e-invoices voluntarily.

Remember the mandatory note on every small-business invoice: "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet." (No VAT is charged pursuant to §19 UStG.) Because small businesses do not show VAT, they also have no input-tax deduction – this applies regardless of the invoice format.

What applies despite an exemption: retention and mandatory fields

Regardless of format, the §14 UStG mandatory fields remain in force: full name and address of both parties, the supplier's tax number or VAT ID, issue date, sequential and unique invoice number, quantity and type of service, service date (time of supply), the net amount broken down by tax rate, plus the applicable tax rate and tax amount, or a note on the tax exemption. For small-amount invoices up to 250 € gross, the simplified details under §33 UStDV are sufficient.

The GoBD requirements also continue to apply: invoices must be stored unalterably, and the retention period has been eight years since 2025 (previously ten years). Received e-invoices must be kept in their original structured format – a mere printout is not sufficient, because the machine-readable data would be lost.

Quick check: do you have to issue an e-invoice?

• Do you sell to private customers (B2C)? → no obligation.
• Is the gross amount no more than 250 €? → no obligation (§33 UStDV).
• Is the service tax-free under §4 No. 8–29 UStG? → no obligation.
• Is the recipient based abroad? → no domestic obligation.
• Are you a small business (§19) issuing for your own tax-free sales? → no obligation (receiving still required).
• Otherwise: domestic B2B → check the transition period until 2026/2027; mandatory from 2028.

If none of these cases apply, you should prepare for XRechnung or ZUGFeRD in good time. Even if you currently fall under an exemption, it pays to become receive-capable early and to test your own processes. Until you switch over, create §14-compliant invoices quickly and for free with our invoice generator.