Electronic invoicing simple explained

In Germany, public contracting authorities and companies that accept contracts for the federal administration are obliged to issue electronic invoices. The corresponding regulation, similar to a law, is set out in the e-invoicing ordinance. The switch to electronic invoicing is therefore part of everyday life.

From January 2025, B2B companies must be able to create, send and process invoices electronically. However, the legislator is offering a transitional period until January 2028. Depending on a company's annual turnover, the transitional phase may end earlier. After that, invoices may only be sent electronically.

Electronic invoicing runs via software. It is available in the following formats:

• Structured data such as XML or EDI format
• Unstructured data such as PDF or Word formats or as e-mail text or image files
• Hybrid data, i.e. a mixture of image file or PDF and XML or EDI format

Hybrid data is most frequently used in everyday life.

• E-mail or e-mail attachment
• DE-Mail
• E-Post
• Fax via computer
• SMS with download via the web

• Lower costs: As no paper or postage is required when creating invoices
• More space: On the shelves, as electronic invoices are not archived in paper form and printing is not necessary
• Time savings: As the creation, processing and storage of e-invoices is (partially) automated and digital. In some cases, it is even possible to create an e-invoice directly from the ERP system
• Fewer errors: as manual input is no longer necessary and media disruptions are avoided
• More satisfied customers: As throughput times are shorter and processing is faster
• End-to-end digitalization: Because another area of the company can be implemented digitally
• Greater consideration for the environment and climate protection: because the less paper is needed, the fewer trees have to be felled. In addition, the number of journeys required is reduced, thereby lowering CO2 emissions

• An e-invoice must comprise an electronic format. As such, it is: issued, sent, received, processed.
• Another requirement is that it must be readable by humans.
• In addition, it must be possible to prove the authenticity of the origin via a control procedure.

In principle, an electronic invoice must contain the same information as a paper invoice.

These are

• Name and address of the company
• Name and address of the service recipient
• Tax number and / or VAT identification number
• Date on which the invoice was issued
• Type of shipment and quantity of items
• Type and scope of service
• Date on which the shipment or other services are provided
• Date of payment
• Remuneration, tax amount and rate
• Reductions in payment that were agreed in advance

A digital signature is not required for a valid e-invoice.

Electronic invoicing is subject to the legal principles of the GoBD. GoBD stands for "Principles for the proper keeping and storage of books, records and documents in electronic form and for data access" and also applies to electronic invoices. Companies are obliged to archive in accordance with GoBD.

Formats such as ZUGFeRD and XRechnung are used and processed in software to ensure that electronic invoices are processed in compliance with GoBD. Both are XML-based data models and enable invoices to be exchanged uniformly across countries. It is not enough to archive PDF files locally or in the cloud. Rather, they must be archived in an audit-proof manner. A number of criteria must be met for this.

They must be:

• traceable and verifiable thanks to a signature
• complete
• correct
• unalterable
• including procedural documentation
• secured against loss
• and posted and recorded in a timely manner.

Section 14b UstG stipulates that invoices must be kept for ten years, regardless of whether they are electronic invoices or paper invoices. The ten-year period begins at the end of the calendar year in which the respective invoice was issued. During the retention period, invoices must comply with the requirements of Section 14 (1) sentence 2 UstG at all times. This concerns the authenticity of the origin as well as the integrity of the content and legibility. In addition, taxpayers are obliged to keep an eye on the provisions of the UstG and the German Fiscal Code as well as the GoBD.

With the introduction of e-invoices, a number of prerequisites should be ensured:

• Incoming invoices are processed regularly. They are also checked for correctness and form.
• Electronic invoices are posted as soon as the check has been completed.
• Electronic invoices are paid on the specified payment date.
• Storage must be ensured.
• The processing of the resulting data is GDPR-compliant.
• Customers and suppliers have consented to the sending of e-invoices. The recipient's consent is therefore given.

Paper invoice

A paper invoice is an invoice that is represented visually as a printout. It is not possible to process them automatically and electronically.

PDF invoice

A PDF invoice is issued, transmitted and received in electronic format. At the same time, it is a pictorial invoice that cannot be processed automatically and electronically.

Electronic invoice

An electronic invoice, on the other hand, is transmitted and received electronically and can be processed automatically and electronically at the same time. This avoids media discontinuity.

The e-invoicing obligation presents companies with new challenges. With Yaveon 365 EDI, you can master these requirements efficiently and reliably.

• Create and import e-invoices in XInvoice format based on posted sales invoices and credit notes.
• Freely configurable mappings for import and export, adapted to invoice recipients and issuers.
• Automatic document dispatch and resending by e-mail, FTP/SFTP or AS/2 (optional costs).
• History and logs for viewing sent e-invoices.
• Automatic download of incoming invoices and protection against double import by checking vendor numbers.
• Incoming invoice verification with automated generation of purchase invoices for checking.