The digitisation of accounting is progressing and XRechnung is an important milestone on this path. As Standardised electronic invoice it plays a crucial role, especially for companies that work with public sector clients. In this blog post, we explain what an XRechnung is, what legal requirements and benefits are associated with it and how the implementation of XRechnung can succeed efficiently with the help of modern software solutions such as ZEP.
Table of contents - What you can expect:
Structure of XInvoices
Create XRechnung professionally
Advantages of the XRechnung
XRechnung is a standardised XML data format for electronic invoices in Germany, which has been mandatory in exchanges with public clients for several years. With the new E-invoicing regulation from 2025 the use of XRechnung will also become mandatory in business transactions between companies. The format is based on EU standard 16931 and enables automated further processing of invoice content thanks to its structured data organisation.
An XRechnung must contain a defined structure that includes all essential information:
| Invoice recipient data | Name of the invoice recipient Address of the invoice recipient Contact details - e.g. e-mail/telephone - of the invoice recipient Routing ID (for dispatch to public clients) |
| Invoice issuer data | Sales tax ID Name of the invoice issuer Address of the invoice issuer Contact details - e.g. e-mail/telephone - of the invoice issuer |
| Invoice details | Invoice number Date of the invoice Terms of payment Invoice items Invoice amount in total Value added tax incl. current tax rate |
| Method of payment | Bank details Payment deadline optional: agreed advance payments, discounts, etc. |
| Additional agreements | Contract number Order number Order number |
Since 27 November 2020, all invoice issuers to public authorities have been obliged to comply with the XRechnung requirements. This applies to all companies and organisations that work with state and local authorities. From 1 January 2025, the e-invoicing obligation will also be extended to business-to-business (B2B) transactions as part of the Growth Opportunities Act. The Federal Ministry of Finance has confirmed that XRechnung will also play a central role in this area.
From 1 January 2025 § 14 paragraph 1 UStG the term "electronic invoice" has been redefined. In future, an electronic invoice (hereinafter: e-invoice) only exists if the invoice is issued, transmitted and received in a structured electronic format and enables electronic processing (Section 14 (1) sentence 3 UStG).
An invoice is recognised as an XRechnung if it is created, transmitted and received in XML format and only contains the information elements defined in the standard. To achieve the status of an XRechnung, the following conditions must be met:
The invoice is independent, but may contain embedded objects such as supporting documents.
✅ It corresponds to the XML schema definitions of EN 16931 and is therefore valid.
✅ It fulfils the defined business rules and their technical requirements of the XRechnung standard.
✅ It only uses information elements that are defined according to the semantic description in the standard.
There are various ways to create an XRechnung, depending on the volume and requirements of your company. Here are the most common methods:
Manual creation via web form: Use a portal like ZRE Federationif you only need to create a small number of invoices. This method is simple and direct.
External service provider: Commission a specialised service provider to create and manage the XRechnung invoices for you. This can be particularly advantageous for larger invoice volumes.
Direct creation from PSA software: If you have a large number of invoices, it is advisable to create the XInvoices directly from a PSA software such as ZEP. This method offers efficiency and integration into your existing processes.
The transmission method of an XRechnung is currently not standardised, meaning that it can also be sent to the recipient by email, for example. There are various options for transmission to contracting authorities, whereby different requirements must be observed depending on the recipient - federal or state level. It is therefore important to find out about the specific transmission channels and requirements of the respective authority.
There are several options available to you when sending an XRechnung invoice to the federal government. You can send the invoice by email, send it via the ZRE portal with a routing ID, use the PEPPOL network or send it directly via an ERP system or document management system (DMS). However, different regulations and requirements must be observed for transmission to the federal states, which vary depending on the individual laws and regulations of the 16 federal states. The Electronic Invoices Association (VeR) offers a current overview and interactive map of the XRechnung implementation standards for each federal state.
With ZEP, you get a powerful software solution that can Invoicing efficiently and responds flexibly to your individual needs. The functions for managing additional project and customer fields allow you to predefine standardised data for each invoice and adapt it as required.
The use of XRechnung brings numerous advantages for companies and the self-employed. Here is an overview of the most important advantages:
📜 XInvoice as a mandatory format: From 2025, companies in the B2B sector will also have to use XRechnung, which makes the standard important for all relevant business processes.
💸 Cost and time savings: Using XRechnung reduces paper and postage costs by up to 70% and saves time on administrative tasks.
📈 Driving digitalisation forward: XInvoices promote digital transformation by enabling paperless processes and saving storage space for invoices.
🔄 Standardised invoicing process: The standard enables a standardised and automated invoicing process that increases efficiency and transparency.
🔐 Data protection and legal certainty: Fulfil Xinvoices Data protection requirements and can be easily checked for correctness, which provides legal certainty.
XRechnung represents significant progress in the digitalisation of accounting and will also be mandatory in the B2B sector from 2025. Its standardised structure and automatable processing not only offer considerable time and cost savings, but also promote the digitalisation and efficiency of business processes.
Companies that prepare for this format at an early stage benefit from a smooth implementation and can thus optimally adapt to the legal requirements and the advantages of paperless invoice processing. Modern software solutions such as ZEP provide support through seamless integration and simplified administration, which makes the introduction of XRechnung much easier.
The E-bill is a structured, electronic format for the automatic processing of invoices. XInvoice is a special national version of the e-invoice in Germany, which is based on the EU standard EN 16931 and was developed especially for public clients in Germany.
XInvoice is a pure XML format that was specially developed for electronic invoicing to public sector clients in Germany. ZUGFeRD on the other hand, is a hybrid data format that integrates structured XML data within a PDF document (PDF/A-3). While XRechnung only uses the XML format, ZUGFeRD enables the simultaneous transmission of invoice data as a PDF for display and as XML for automatic processing.
The obligation to accept electronic invoices for federal ministries and constitutional bodies has been in place since 27 November 2018. Since 27 November 2020, invoice issuers must submit invoices to the federal government electronically in XRechnung format. From 1 January 2025, the XRechnung obligation will be gradually extended to business transactions between companies, meaning that every company will be able to receive, process and archive XRechnung invoices (Document management) must.
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