Starting January 1, 2025, electronic invoicing (E-Invoicing) becomes mandatory for B2B transactions between companies based in Germany. This regulatory change is part of Germany's broader strategy to digitalize tax administration and enhance financial transparency. For many businesses, especially online sellers, Amazon merchants, and operators of platforms like Shopify or WooCommerce, this represents a significant shift.

If your current invoicing system (ERP, e-commerce platform, or SaaS software) does not support structured electronic invoices, now is the time to adapt. Implementing these changes ensures compliance with both GoBD (principles for electronic accounting) and German VAT laws (UStG).

What Exactly is an E-Invoice? (§ 14 UStG)

According to German VAT Law (§ 14(1)(3) UStG), an electronic invoice is:

"An invoice issued, transmitted, and received in a structured electronic format that enables automatic electronic processing."

It’s crucial to understand that a standard PDF invoice is not considered an e-invoice under this law. Instead, only structured data formats facilitating automatic data processing qualify.

Accepted structured formats:

XRechnung: Primarily used by public authorities and increasingly adopted for B2B transactions.
ZUGFeRD (from version 2.0.1): Combines human-readable PDF invoices with XML data for automatic processing.

These formats streamline bookkeeping, enabling automation and integration with accounting systems such as DATEV and Xero.

Key Details Required on an E-Invoice (§ 14(4) UStG)

To comply legally, your invoice must include:

Complete names and addresses of both the issuer and recipient.
VAT identification number or tax number.
Invoice date and sequential invoice number.
Detailed description of the goods or services.
Date of service delivery or completion.
Net amount, VAT rate applied, and VAT amount.
Any applicable VAT exemption notes.

Furthermore, invoices must be archived securely, maintaining readability and integrity in accordance with GoBD.

Timeline: Who is affected and when?

Germany is introducing e-invoicing gradually:

Date	Obligation
01.01.2025	Mandatory acceptance of e-invoices for all B2B transactions
01.01.2026	Mandatory issuance for businesses with revenue > €800,000
01.01.2027	General issuance obligation for all B2B transactions

This applies to all Germany-based businesses providing taxable services domestically. B2C transactions and certain tax-exempt services like financial services or real estate leasing remain exempt.

Practical Implications for Online Sellers

If you run an online store on platforms such as Amazon FBA, Shopify, or WooCommerce, the change means you'll soon be required to issue structured e-invoices when dealing with business customers. Given the high transaction volumes typically associated with online commerce, adopting automated invoicing solutions early is essential.

Solutions if You Cannot Currently Generate E-Invoices

You don't need to overhaul your existing infrastructure immediately. Alternatives include:

Utilizing specialized e-invoicing tools to create compliant XRechnung or ZUGFeRD invoices.
Outsourcing invoice creation to accounting services or software providers such as DATEV SmartTransfer.
Exporting invoice data from your current platforms for conversion into structured formats.
Leveraging accounting platforms like Xero, which support creating, exporting, and managing structured e-invoices.

How KudTax Supports Your Compliance

KudTax is designed specifically for e-commerce invoice management, enabling you to:

Centrally store and securely archive invoices.
Automatically assign transactions and match them to invoices from platforms like Amazon and Shopify.
Export invoices and transaction data in a GoBD-compliant manner directly to systems like DATEV and Xero or your tax advisor.

KudTax itself does not generate e-invoices but integrates seamlessly with systems that do, simplifying compliance.

Conclusion: E-Invoicing as an Opportunity

E-invoicing is more than a legal requirement—it's a valuable opportunity to modernize your accounting processes. Digital solutions like KudTax and integrations with accounting platforms such as Xero will significantly reduce manual effort, errors, and compliance risks.

Act now to transform your invoicing process—ensure compliance and position your online business for a smooth transition into 2025 and beyond.

KudTax Blog

E-Invoicing 2025: What Online Sellers Need to Know