E-invoicing obligation 2025: What you need to know now
Since January 1, 2025, businesses in Germany are required to use electronic invoices in B2B transactions. While this regulation aims to drive digitization and improve efficiency, it also presents significant challenges. Companies must make substantial investments in IT infrastructure and employee training, and many criticize that the new requirements increase bureaucracy rather than reduce it.
Our Solution at seven.io
To make the transition easier, seven.io provides invoices in the ZUGFeRD format. ZUGFeRD (Zentraler User Guide des Forums elektronische Rechnung Deutschland) is a hybrid invoice format that combines a readable PDF with a machine-readable XML file. This allows both manual review and automated processing of invoice data.
How Do You Receive Your Invoices?
After every payment, we send your invoice in ZUGFeRD format via email. If you did not receive it or need another copy, you can always access and download it in your seven.io account under Finances. Simply click on the corresponding invoice number in the table. Lear more in our helpdesk article.
Need to Change Your Billing Address?
If you need to update your billing address, you can do so directly in your account.
• Navigate to Account → Finances
• Update your billing details
• Generate an updated invoice if necessary
Criticism of the New Regulation
Many businesses see the mandatory e-invoicing requirement as rushed and impractical. The technical complexity and financial burden of implementing new systems, especially for small and medium-sized enterprises, is a major concern. Instead of simplifying invoicing, the regulation adds another bureaucratic hurdle.
The Complexity of ZUGFeRD
The ZUGFeRD format combines a PDF with an XML file, which theoretically improves automation. However, the practical implementation is a nightmare. The XML component is highly complex, requiring specialized knowledge for validation and processing. Companies must adapt their systems accordingly, resulting in increased costs and effort.
Conclusion
While digital invoicing is, in principle, a step in the right direction, the current implementation of the mandatory e-invoicing regulation and the ZUGFeRD format has proven to be inefficient and burdensome for many businesses. Hopefully, lawmakers will take industry feedback seriously and revise the system to make it more practical for real-world use.