Many companies underestimate the mandatory e-invoicing requirement from 2027 onwards.

July 1, 2026

The introduction of e-invoicing is progressing in Germany. While companies have been required to receive electronic invoices since January 1, 2025, an important transition period ends for many businesses on January 1, 2027.

Companies with a turnover of more than 800,000 euros in the previous year are generally required to issue electronic invoices in a structured format in their domestic B2B business.

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

However, these are generally not considered e-invoices under tax law, as defined by legal requirements. Those who delay the transition risk process disruptions, increased administrative costs, and potentially tax disadvantages in invoice processing.

What specific changes will occur from 2027 onwards?

From January 1, 2027, companies with a turnover exceeding €800,000 in the previous year must generally issue their invoices to other domestic companies as e-invoices. The invoice must conform to a structured electronic format and comply with the European standard EN 16931. Common formats include XRechnung and ZUGFeRD in their respective versions.

For companies with a turnover of no more than 800,000 euros in the previous year, transitional regulations still apply until December 31, 2027. From 2028 onwards, e-invoicing will generally become the standard in the B2B sector.

Act 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 whether adjustments are necessary.

2. Select suitable software

Not every accounting or ERP solution automatically supports legally compliant e-invoicing. An early technical review provides planning certainty and avoids later bottlenecks.

3. Ensure compliance

It is crucial that the generated invoices 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. Setting up a central email address or a digital invoice receipt system for receiving electronic invoices is recommended.

Tax advisors as important partners in implementation

Switching to e-invoicing is not just a technical project, but also a tax and organizational challenge. Early consultation helps to minimize risks, streamline processes, and ensure legally compliant implementation of legal requirements.

The mandatory e-invoicing requirement from 2027 onwards will affect many companies sooner than expected. Those with a previous year's revenue exceeding €800,000 should use the remaining time to prepare their processes, software, and internal procedures for the new requirements. Timely implementation not only ensures legal certainty but can also sustainably advance the digitalization of financial accounting.

Want to know if your company is already prepared? The HCSM team supports you with a tax analysis of your processes and guides you step by step on the path to legally compliant e-invoicing.

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