If your business operates in Germany or has a registered office there, you’ll need to prepare for significant e-invoicing changes starting in 2025. Under the Wachstumschancengesetz (or “Growth Opportunities Act”), many businesses in Germany will have to accept and send e-invoices in the near future.
Fortunately, with the right solution, this isn’t something NetSuite users will need to spend too much time worrying about. In this article, we’ll get you up to speed with Germany’s impending regulatory changes on e-invoicing – and how ZoneCapture can help you adapt with ease.
A closer look at German e-invoicing changes beginning in 2025
Currently, German companies only have to use e-invoicing for public contracts, but starting in 2025, the German government will start enforcing new regulations for e-invoicing in the B2B flow.
Mandates are applicable for:
- Entrepreneurs with a place of management or seat (registered office) in Germany
- Businesses with a fixed German establishment that is involved with a given transaction (or a domicile/habitual residence in Germany if they do not have a registered office)
Once Germany’s B2B e-invoicing regulations are fully implemented, German institutions that fall into these categories will have to issue e-invoices when doing business with other companies and entrepreneurs domestically. They must submit these invoices as ZUGFeRD files (a hybrid format combining PDF documents with embedded XML files) or XML files in Cross-Industry Invoice or Universal Business Language (UBL) syntax.
Please note that the transmission method of e-invoices is not regulated. Today, the most common strategy is delivery via email or the e-invoicing PEPPOL network. Only small-value invoices with gross amounts below €250 and travel tickets functioning as invoices will be exempt from the new e-invoicing requirements.
However, these regulations will not be fully implemented on day one. Instead, they will be introduced in three stages:
January 2025
From January 1, 2025 on, German businesses must be able to receive and process structured e-invoices from vendors. There will be no transitional period for this new requirement, but companies will not have to issue e-invoices immediately. Instead, they can continue sending paper invoices (without the recipient’s consent) or electronic invoices in non-standardized formats (with the recipient’s consent) until the end of 2026.
If you are a buyer, you should be prepared to receive and process e-invoices in case a vendor decides to start sending them already in 2025. It’s recommended to agree with your vendors on the delivery method of e-invoices in advance and proactively communicate with them about the formats you prefer to receive.
January 2027
On January 1, 2027, entrepreneurs must begin issuing e-invoices if their total annual turnover exceeds €800,000. Small and medium-sized enterprises will still be allowed to send paper invoices till the end of the year.
January 2028
Finally, all entrepreneurs in Germany affected by these changes will be required to start issuing B2B e-invoices on January 1, 2028.
E-invoicing and ZoneCapture: what you need to know
ZoneCapture is a native NetSuite application designed to simplify e-invoicing compliance and streamline your accounts payable processes. Here’s how it supports businesses with the upcoming regulatory changes:
Receiving E-invoices
ZoneCapture offers two primary options for receiving e-invoices:
1. Peppol Network
ZoneCapture supports receiving e-invoices via the Peppol network, a widely used platform for electronic data exchange. To leverage this function, businesses must purchase the ZoneCapture e-invoicing module. Peppol registration is also necessary to activate this feature, and a Zone & Co implementation consultant will assist to ensure a streamlined process.
2. Email Plug-in
ZoneCapture will offer two email plugin options for handling e-invoices:
- Standard Email Plugin: Scan PDFs, auto-populate vendor bills based on captured data, and attach XML files to created vendor bills for the client’s reference.
- Dedicated Email Plugin for XMLs: Prioritize XML files in UBL format and auto-populate vendor bills based on data in XML files while attaching PDFs as references. This plugin will be available in ZoneCapture version 2.14.0, which was released on November 29, 2024.
Sending E-invoices
Although businesses are not required to send structured e-invoices in 2025, ZoneCapture offers features to help you stay ahead of future mandates. These include B2G transactions that comply with existing requirements by sending e-invoices through the Peppol network. (Requires the e-invoicing module)
Make e-invoicing easy with ZoneCapture
Whether your business in Germany has been sending digital invoices for years or you need to start issuing these invoices to comply with upcoming regulations, you deserve to use the best software on the market for this vital task. No matter how familiar you are with e-invoicing, ZoneCapture from Zone & Co can simplify this process for NetSuite users with capabilities like:
- AP automation in NetSuite
- Automatic invoice capture
- 3-way matching
If you need powerful NetSuite e-invoicing features in Germany – or anywhere in the world you’re looking to optimize your AP strategy – ZoneCapture delivers these capabilities and many others. Set up a demo to get started, or explore our Knowledge Base to learn more!
Frequently asked questions
What e-invoicing requirements will German businesses have starting January 1, 2025?
From 2025 on, businesses in Germany will be required to receive e-invoices from vendors they work with. However, they will not be required to issue e-invoices at this point. To learn more about Germany’s e-invoicing regulations, refer to the German Ministry of Finance’s official guidelines on this subject.
Will I still be able to receive PDFs for B2B transactions via email?
Your business will still be able to receive PDF invoices through ZoneCapture after January 1, 2025. ZoneCapture will also continue providing OCR features for PDFs beyond this point.
Does ZoneCapture support emailed XML files?
ZoneCapture is introducing a dedicated email plugin to help companies deal with situations where vendors email invoices as both PDFs and XML files in UBL syntax. This plugin will auto-populate vendor bills with XML data and attach the PDF as a reference.
Will B2G transactions in Germany undergo any changes in 2025?
No. Germany’s e-invoicing requirements for B2G transactions will not change in 2025. For transactions like these, ZoneCapture gives businesses the ability to send e-invoices via Peppol.
Does the mandate apply to cross-border invoices as well?
Invoices sent to countries besides Germany do not need to be e-invoices and can be sent in traditional formats. Similarly, invoices received from outside Germany are not required to comply with these mandates.
Do I as a buyer have to be able to receive any e-invoice format my vendor sends me?
As long as the format is compatible with European standard EN 16931 you should be able to receive and process it. However as multiple formats are allowed, it’s worth proactively communicating with your vendor about formats you prefer to receive.
Do I as a buyer have to accept any delivery method of e-invoice that my vendor insists on?
The mandate does not regulate transfer methods. E-invoices can be transferred via the e-invoicing network (Peppol), as email attachments, through supplier portals, and more. It’s advisable to agree with your vendor on the transmission method in advance.
Is having an email inbox enough to receive e-invoices?
If your vendor will be sending invoices in PDF or PDF+XML formats, then yes. However, for vendors who prefer sending via the e-invoicing network (Peppol), the ZoneCapture E-invoicing module is required.
