ZUGFeRD Invoice: The Hybrid E-Invoice Format Explained

Since 01 January 2025, every domestic business must be able to receive structured B2B invoices. That has moved a previously technical topic right into everyday office life: the e-invoice. One of the most important formats for it is ZUGFeRD. This guide explains what a ZUGFeRD invoice is, how it differs from XRechnung, and what to watch out for in practice.

What is a ZUGFeRD invoice?

ZUGFeRD stands for "Zentraler User Guide des Forums elektronische Rechnung Deutschland" (Central User Guide of the German Electronic Invoice Forum). It is a hybrid invoice format: every invoice consists of two parts combined into a single file.

• A PDF/A-3 that displays the invoice visually as usual – with logo, layout, and all the details a person can read.
• An embedded XML file in which the same invoice data is stored in a structured, machine-readable form.

The clever part: you open the file like an ordinary PDF and see your invoice. Accounting software, on the other hand, automatically reads the embedded XML and imports amounts, tax rates, and the invoice number without anyone having to retype anything. The invoice stays understandable for humans and machines.

PDF/A-3 is no accident here: this archival format officially allows arbitrary files – in this case the XML – to be permanently embedded inside the PDF. That also matters for the audit-proof storage required under the GoBD rules. Good to know: in case of a discrepancy, the embedded XML is always the legally authoritative document, not the PDF image. You should therefore make sure both parts match exactly in content – reputable software generates both from the same data source.

ZUGFeRD vs. XRechnung: the key difference

Both formats are genuine e-invoices in the legal sense, and both meet the European standard EN 16931. The difference lies in their structure:

• XRechnung is a pure XML file. There is no visual document; without a suitable viewer you only see code. XRechnung is the national standard for the public sector and has been mandatory in the B2G area (invoices to public authorities) for years.
• ZUGFeRD is a hybrid PDF/A-3 with embedded XML. You always have a readable visual document with you. ZUGFeRD is especially popular in B2B business between companies because recipients can read the invoice even without special software.

In short: XRechnung is machine format only, ZUGFeRD is human and machine in one. Importantly, the profiles available from ZUGFeRD version 2.x onward are designed so that the embedded XML complies with EN 16931 – ZUGFeRD and XRechnung are technically closely related and use the same data basis. Note, however, that the older ZUGFeRD 1.0 version was not yet EN 16931-compliant and is not considered a valid e-invoice today. Make sure your software outputs ZUGFeRD 2.x (or the technically identical Factur-X format common in France).

The ZUGFeRD profiles at a glance

ZUGFeRD is not a rigid schema but offers several profiles containing different numbers of data fields. The higher the profile, the more complete the structured data:

• MINIMUM and BASIC WL: only basic data, not intended as a full invoice on their own (e.g. for booking aids only).
• BASIC: simple invoices with the most important line items.
• EN 16931 (COMFORT): the central profile that fully maps the European standard – the right choice for most businesses.
• EXTENDED: additional fields for complex industries and cross-border transactions.
• XRECHNUNG: a profile whose XML corresponds to XRechnung – this lets ZUGFeRD be used for B2G-compliant deliveries too.

For a normal small or mid-sized business invoice, the EN 16931 profile is usually sufficient and safe. The MINIMUM and BASIC WL profiles deliberately contain no line items and are therefore not enough for a complete invoice under §14 UStG – do not use them as a stand-alone outgoing invoice.

Worked example: a ZUGFeRD invoice with 19% VAT

Suppose you bill a business customer for a consulting service at the standard VAT rate of 19%.

• Net amount: 1.000,00 €
• VAT 19%: 190,00 €
• Gross (invoice total): 1.190,00 €

If you only know the gross amount, you extract the tax like this: net = 1.190,00 € × 100 / 119 = 1.000,00 €; VAT = 1.190,00 € − 1.000,00 € = 190,00 €. Our VAT calculator does exactly that in seconds.

In the ZUGFeRD file these values appear twice: once readably in the PDF layout and once in the XML fields (net per tax rate, applicable tax rate, tax amount, gross amount). The recipient's software then posts the 190,00 € input tax automatically. Had you charged a service at the reduced rate of 7% – for example a book at 100,00 € net – the XML would show 7,00 € VAT and 107,00 € gross. On mixed invoices combining 19% and 7%, the XML must show the net amount cleanly broken down by tax rate; standard-compliant software handles this automatically.

§14 UStG also applies to e-invoices

A ZUGFeRD invoice does not change the mandatory content required under §14 UStG. The following must still be complete:

• full name and address of supplier and recipient,
• the supplier's tax number or VAT ID (USt-IdNr.),
• the issue date and a sequential, unique invoice number,
• the quantity and type of service plus the date of supply (Leistungsdatum),
• the net amount broken down by tax rate, the tax rate, and the tax amount (or a note on the tax exemption),
• any reductions agreed in advance such as discount or rebate.

EN 16931 ensures that exactly these fields are present in the XML. A common mistake in practice: the nice PDF layout is complete, but the XML is missing, for instance, the date of supply or the VAT ID – then the invoice is technically incomplete, even though the visual document looks correct. Therefore, check regularly with a validation tool whether the XML contains all mandatory fields. For small amounts there is a simplification: for a small-amount invoice up to 250 € gross (§33 UStDV), fewer details are mandatory. With our invoice generator you create §14-compliant invoices without forgetting a single mandatory field.

Which format do I need and when?

• B2G (to public authorities): XRechnung is the standard here and mandatory in many cases.
• B2B (between businesses): ZUGFeRD is popular because the visual document makes the transition easier; XRechnung is equally permitted.
• B2C (to private customers): there is no e-invoice obligation. A normal PDF or paper invoice is sufficient.

For the receiving obligation since 01.01.2025, an email inbox that can accept ZUGFeRD and XRechnung files is often enough. For issuing there are transition periods: until 31.12.2026 all businesses may still send paper or simple PDF with the recipient's consent; for businesses with prior-year turnover up to 800.000 € this is extended until 31.12.2027. From 01.01.2028 the structured e-invoice is fully mandatory in B2B. Switching early avoids stress just before the deadlines – and many customers already expect ZUGFeRD or XRechnung today anyway.

An important point about receiving: a simple PDF that arrives by email is not a structured e-invoice – it lacks the embedded, machine-readable XML. Once the issuing obligation applies, such a PDF is no longer sufficient in B2B. ZUGFeRD and XRechnung are the two standard formats that keep you on the safe side in Germany.

What does this mean for small businesses (Kleinunternehmer)?

Anyone using the small-business scheme under §19 UStG (prior-year turnover ≤ 25.000 € and current year ≤ 100.000 €) must also be able to receive e-invoices. For their own VAT-free outgoing invoices, however, small businesses are exempt from the issuing obligation – though they may of course create a ZUGFeRD invoice voluntarily. The mandatory note "Gemäß § 19 UStG wird keine Umsatzsteuer berechnet." then belongs in both the visual document and the XML. Because small businesses do not charge VAT, they also have no input-tax deduction – the XML accordingly shows a tax amount of 0,00 € together with a note on the tax exemption.

Storage and GoBD

E-invoices must be stored unalterably and in a machine-readable form. What matters is that you archive the complete ZUGFeRD file including the embedded XML – not just a printout. Anyone who prints a ZUGFeRD invoice and files only the paper loses the machine-readable part and violates the GoBD. The retention period for invoices has been eight years since 2025 (previously ten). A suitable document-management or accounting system stores the original file unchanged and logs every access.

With ZUGFeRD you get ready for the e-invoice obligation without giving up an easily readable document. If you already create clean, §14-compliant invoices today, you have done most of the changeover work already – the step to a structured e-invoice is then just a matter of the right format.