E-invoicing in Germany
As of 27 November 2020, the German Federal Government will not accept paper or pdf invoices for public procurement contracts.
Vendors must be technically ready to issue invoices to public entities in electronic format. It will only apply to business-to-government transactions, not vice versa. At state level, supplier obligation will have to be decided separately. So far, only Bremen has made such a decision along with the federal government. The use of paper and pdf invoices will be prohibited for government vendors.
Who is eligible for e-invoicing in Germany?
Every taxpayer is eligible to conduct relevant billing processes according to the standard for electronic invoices set by German and EU laws.
Is B2B e-invoicing mandatory in Germany?
Many German companies have already been using electronic invoicing to reduce their workload and the costs associated with manual invoicing processes. Currently, the government does not mandate B2B e-invoicing for taxpayers. However, it is recommended to exchange invoices electronically between businesses. In the upcoming years, Germany may follow in the footsteps of Italy and France and make B2B e-invoicing mandatory.
What is the required format for public procurement e-invoicing?
According to the government, X-Rechnung, or any EU-compliant format, could be used by government suppliers for public procurement. This e-format is unique, standardized and made interoperable so as to be usable by all taxpayers across the whole country. It is machine readable and can be fully automated through the ERP Accounting system.
What is X-Rechnung?
X-Rechnung, which is the official format of Bund for e-invoicing, is solely available in XML format. X-Rechnung makes sending invoices through the Peppol network possible. Kosit (Coordination office for IT standards) is responsible for the set-up and maintenance of the Peppol system in Germany for e-invoicing.
It is different from ZUGFeRD, which contains the PDF format of the invoice, in addition to the XML format. ZUGFeRD 2.1.1 with profile X-Rechnung is identical to X-Rechnung, and consequently accepted by the government for B2G transactions.
How can SNI’s SAP X-RECHNUNG add-on help you?
SNI’s SAP-XRECHNUNG is an SAP add-on for creating and exchanging electronic invoices between trade partners, including public entities, organizations, and individuals.
X-Rechnung invoices are only available in electronic XML format. SNI’s solution is able to issue invoices directly in XML format.
It is transmittable through Peppol Network by Access Point Providers. SNI is a certified Peppol access point.
SNI’s solution is an end-to-end solution, meaning that all these major steps are handled by a single SAP add-on:
Extraction of accounting and transaction data from SAP
Data mapping and processing
Communication with tax authorities through SNI’s e-invoice connector, or any connector chosen by the client