Many companies underestimate the e-invoicing requirement set to take effect in 2027

Jul 1, 2026

While businesses have been required to accept electronic invoices since January 1, 2025, an important transition period ends for many companies on January 1, 2027: Companies with prior-year revenue exceeding 800,000 euros will then generally be required to issue electronic invoices in a structured format for domestic B2B transactions.

In practice, however, it is evident that many companies still underestimate the scope of the legal changes. PDF invoices are often still considered sufficient.

However, from a tax law perspective, these are generally not considered e-invoices as defined by the legal requirements. Those who delay the transition risk operational disruptions, increased administrative burdens, and, in some cases, tax disadvantages when processing invoices.

What exactly will change starting in 2027?
Starting January 1, 2027, companies with prior-year revenue exceeding 800,000 euros must generally issue their invoices to other domestic companies as e-invoices. The invoice must be in a structured electronic format and comply with the European standard EN 16931. Common formats include, for example, XRechnung or ZUGFeRD in the appropriate version.

Transitional provisions remain in effect until December 31, 2027, for companies with prior-year revenue of up to 800,000 euros. Starting in 2028, e-invoicing will generally become the standard in the B2B sector.

Take Action Now: How to Ensure a Legally Compliant Transition
1. Analyze Existing Processes
The first step is to review current invoicing and accounting processes. Companies should determine whether their existing systems already meet legal requirements or if adjustments are necessary.

2. Selecting the Right Software
Not every accounting or ERP solution automatically supports legally compliant e-invoices. Conducting a technical review early on provides planning certainty and helps avoid bottlenecks later on.

3. Ensure Compliance
It is crucial that the invoices generated comply with legal requirements. In addition to the mandatory VAT information, the technical requirements of the EN 16931 standard must be met.

4. Involve Business Partners
A successful transition also requires coordination with customers and suppliers. It is recommended to set up a central email address or a digital invoice inbox for receiving electronic invoices.


Tax Advisors as Key Partners in Implementation
The transition to e-invoicing is not just a technical project, but also a tax and organizational challenge. Seeking advice early on helps minimize risks, design efficient processes, and implement legal requirements in a legally compliant manner.

The e-invoicing requirement taking effect in 2027 will affect many companies sooner than expected. Any company with prior-year revenue exceeding 800,000 euros should use the time remaining to prepare its processes, software, and internal workflows for the new requirements. Timely implementation not only ensures legal compliance but can also drive the digital transformation of financial accounting in the long term.

Would you like to know if your company is already prepared? The HCSM team will help you analyze your processes from a tax perspective and guide you step by step toward compliant e-invoicing.

Note: This article is for general information purposes only and does not replace individual tax advice.