E-Invoice Software: What to Look For When Choosing

In Germany, the e-invoice is no longer optional but mandatory. Since 01.01.2025, every domestic business must be able to receive structured B2B e-invoices. Choosing the right e-invoice software not only saves you trouble with the tax office but also automates bookkeeping and archiving. This guide shows which features really matter and how to compare providers neutrally.

What distinguishes an e-invoice from a PDF

For the legislator, a PDF invoice is just an image. A true e-invoice contains the invoice data in a structured, machine-readable form, so software can process it without manual re-typing. The relevant standard is the European norm EN 16931. Two formats are common in Germany:

• XRechnung: a pure XML format, often required in public procurement (B2G).
• ZUGFeRD: a hybrid format. It combines a readable PDF/A-3 with embedded XML. The ZUGFeRD 2.x profiles are EN 16931-compliant. People see a normal PDF, while machines read the data in the background.

From the respective deadlines onward, a PDF without structured data no longer counts as a proper e-invoice in the B2B area.

The most important features of e-invoice software

1. Export to XRechnung and ZUGFeRD

This is the core function. Make sure the software supports both formats. You need XRechnung for public authorities, while ZUGFeRD is practical in everyday B2B because recipients can still view the PDF. Also check which ZUGFeRD profiles are supported (e.g. EN 16931 / Comfort).

2. Receiving and processing incoming e-invoices

The obligation to receive already applies. A good solution reads incoming XRechnung and ZUGFeRD files, displays them readably, and transfers the data into your bookkeeping. This eliminates manual entry.

3. Automatic validation against EN 16931

A structured invoice with errors will be rejected by the recipient or their system. The software should check every invoice before sending against the EN 16931 standard (and, where relevant, the national XRechnung schema) and report errors clearly.

4. GoBD-compliant archiving

Under the GoBD, invoices must be stored unalterably. The retention period for invoices has been eight years since 2025 (previously ten). Look for audit-proof storage, change logging, and an export option for tax audits.

5. All mandatory fields under §14 UStG

Electronically, too, the rule applies: a complete invoice must contain all mandatory fields under §14 UStG. These include, among others, the name and address of the supplier and recipient, the tax number or VAT ID, the issue date, a sequential unique invoice number, the quantity and type of service, the date of supply, the net amount broken down by tax rate, plus the tax rate and tax amount. For small-amount invoices up to 250 € gross (§33 UStDV), simplified fields are allowed. Good software enforces the relevant fields so that no incomplete invoice goes out.

6. Connection to bookkeeping and DATEV

If you work with a tax advisor, a DATEV interface or a clean export is worth its weight in gold. Also check interfaces to your inventory management system or online shop.

Obligations and deadlines at a glance

The transition is phased. The key distinction is between receiving and sending:

• Since 01.01.2025: Every domestic business must be able to receive e-invoices. This also applies to small businesses (Kleinunternehmer).
• Until 31.12.2026: Paper and PDF may still be sent in B2B, provided the recipient consents.
• Until 31.12.2027: Extended transition period for businesses with prior-year turnover up to 800,000 € — they may still issue paper/PDF.
• From 01.01.2028: Issuing structured e-invoices in B2B is fully mandatory.

There is no e-invoice obligation for invoices to private customers (B2C). Small businesses under §19 UStG must be able to receive e-invoices; for their own (tax-free) sales they are exempt from the issuing obligation but may send e-invoices voluntarily.

Worked example: choosing for a small trade business

Take an electrical contractor with annual turnover of around 350,000 € that mainly bills business customers and property managers.

• Receiving: Already necessary now, since suppliers increasingly send ZUGFeRD.
• Sending: Because turnover is below 800,000 €, the extended deadline until 31.12.2027 applies. Even so, the business switches earlier because large clients already require XRechnung today.

A typical invoice of 1,000.00 € net at 19 % VAT works out as:

• Net: 1,000.00 €
• VAT (19 %): 190.00 €
• Gross: 1,190.00 €

The software embeds these amounts in a structured way into the ZUGFeRD file, validates against EN 16931, and stores the invoice in an audit-proof manner. So the business needs a solution with ZUGFeRD and XRechnung export, validation, and archiving — the core criteria named above.

How to compare providers neutrally

The market for e-invoice software is large: pure e-invoicing tools, accounting programs with an e-invoice module, and ERP systems. Instead of blindly trusting a name, assess every candidate against the same criteria.

Note: this table is a neutral evaluation template, not a ranking. Enter your preferred candidates and assign points — that way you make an objective decision.

A free way to get started without big software

Not everyone needs an expensive system right away. If you only write invoices occasionally or want to test what a §14-compliant invoice looks like, you can start for free and without registration with our invoice generator. It creates legally sound PDF invoices with all mandatory fields. You can quickly work out the tax amount beforehand with our VAT calculator. This way you gain experience before investing in a full e-invoice software with XRechnung and ZUGFeRD export.

For the actual sending of structured B2B e-invoices from the mandatory deadlines onward, however, you will need a solution that generates and validates the formats mentioned above. So plan the transition in good time and not just shortly before the respective deadline.