Moving to B2B E-Invoicing in Germany with SPS Commerce

E-Invoicing Mandatory for Domestic B2B Transactions from 2025

With the Growth Opportunities Act passed on March 22, 2024, the Federal Council has paved the way for the gradual introduction of mandatory electronic invoicing (e-invoicing) in the B2B sector. Let's take a closer look at the transition rules for German companies.

Transitional Regulations According to § 27 (38) UStG New Version

Companies must be able to receive e-invoices from their business partners from January 1, 2025. This can be done by using e-invoicing solutions or by setting up an email inbox specifically for receiving invoices. Although paper invoices are still valid, they lose their priority. This means that companies are obliged to receive and process e-invoices from their business partners if they are sent to them in this format. Sending other electronic invoice formats, such as PDF, is still possible, but only with the express consent of the recipient.

From January 1, 2027, companies based in Germany with a turnover of more than 800,000 euros in the previous year must send their B2B invoices electronically. Companies with a lower turnover still have the choice: they can continue to send paper invoices, PDF invoices or other electronic invoice formats. EDI invoices will also remain possible: in 2027, companies will still be able to send EDI (Electronic Data Interchange) invoices, but only with the consent of the invoice recipient. EDI is a standardized procedure for the electronic exchange of business documents, including invoices.

From January 1, 2028, every company based in Germany must send and receive B2B e-invoices. The EDI procedure is permitted with interoperability with EN 16931 in relation to invoice components subject to VAT.

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What Kind of Expertise Do You Need on the Team?

The changeover to electronic invoicing (e-invoicing) in Germany presents companies with numerous challenges. In addition to the technical implementation, your organization must consider legal aspects, cooperation with business partners and the adaptation of internal processes.

To successfully meet these challenges, it is important to ensure that the appropriate expertise and experience are available within the organization.

Financial Accounting Expertise

E-invoicing requires adjustments in financial accounting. Your team must be familiar with the relevant accounting regulations, in particular the German Commercial Code (HGB) and the International Financial Reporting Standards (IFRS).

It is important to ensure that the e-invoices can be correctly mapped and processed in the financial accounting system. This includes verifying the invoice data, converting it to the required format and posting it automatically.

At SPS Commerce, among many other services, we support your finance team in the legally compliant archiving of e-invoices. Moreover, SPS Commerce has documented the process of receiving, converting and providing electronic documents with the GoBD guidelines in general.

Tax Law Know-How

Sound tax knowledge is essential to meet the legal requirements for e-invoicing. This includes knowledge of Directive 2006/112/EC (VAT Directive) in its current version with update 2010/45 and the German Value Added Tax Act (UStG).

Your team must understand which invoices must be issued electronically, which formats are permitted, and which deadlines must be observed. It is also important to stay informed about the latest developments in tax law in connection with e-invoicing.

Your compliance, our priority. At SPS Commerce, we take a comprehensive approach to ensure that your invoices are error-free. Not only do we ensure compliance with strict regulatory requirements for audit trails and tax returns, but we also customize our services to meet the unique needs of each of your trading partners. The result is smoother transactions, fewer rejections and stronger business relationships.

Smooth Workflows Through Process Optimization

The switch to e-invoicing offers the opportunity to optimize existing processes in accounting, logistics and sales.

Your team should analyze the existing processes and identify where efficiency gains can be achieved through digitalization. This includes the automation of manual processes, the reduction of media disruptions and the optimization of interfaces between different systems.

E-invoicing and EDI are two sides of the same coin. We understand the flexibility that e-invoicing mandates often offer, and we are here to ensure compliance without disrupting your existing systems. SPS offers more than just a Peppol Access Point or a connection to a tax authority portal; we facilitate relationships between trading partners and e nsure smooth and efficient transactions.

Technical Expertise with ERP Systems and Transaction Systems

The implementation of e-invoicing requires technical expertise in the field of ERP systems such as SAP, Oracle, Microsoft, etc.

Your team must be able to configure the necessary interfaces, ensure data transfer and manage the e-invoices in the system. It is also important to regularly check the systems for updates and security requirements.

SPS Commerce has mastered how to make ERP integrations secure, compliant and seamless. With solutions from SPS Commerce, you can outsource the technical details of the work to focus on the most important activities - real-time data analysis, identifying cost savings opportunities and optimizing financial operations. By automating the invoicing process, you can shift your finance team's focus from data gymnastics to strategic finance. Find out more about our ERP connections here.