E-invoicing with SAP Business One: receive since 2025, send from 2027
From 1 January 2027, companies in Germany with prior-year revenue above €800,000 must issue e-invoices for domestic B2B transactions, and from 2028 all companies must. A PDF invoice sent by email will no longer be enough.
Together with you, we clarify how SAP Business One creates XRechnung and ZUGFeRD invoices, how incoming e-invoices are checked and posted, and where they are archived in an audit-proof way.
What an e-invoice is and what it is not
An e-invoice is an invoice in a structured electronic format that complies with the European standard EN 16931. It is issued, transmitted and received in a way that a system can read it without retyping. The common formats in Germany are XRechnung and ZUGFeRD.
A PDF file, a scan or a photo of an invoice is not an e-invoice, even if it arrives by email. With ZUGFeRD the data record is embedded in the PDF file; what counts is the data record, not the image.
For companies using SAP Business One this means: outgoing invoices must leave the system as a data record, and incoming e-invoices should be checked, posted and archived in their original format without media breaks.
- Receiving
- mandatory for all companies in Germany since 01/01/2025
- Issuing, stage 1
- from 01/01/2027 with prior-year revenue above €800,000
- Issuing, stage 2
- from 01/01/2028 for all companies in Germany
- Applies to
- transactions between businesses that are both established in Germany
- Formats
- XRechnung, ZUGFeRD 2.x (without the MINIMUM and BASIC-WL profiles)
- Not an e-invoice
- PDF, scan, image file
- Retention
- 8 years, in the original format
- Legal basis
- Section 14 German VAT Act (UStG), transition under Section 27 (38) UStG (Growth Opportunities Act)
Mandatory e-invoicing in Germany in three stages
Receiving is already mandatory. For sending, transition periods apply that depend on the previous year’s revenue.
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since 01/01/2025
Receive
All companies in Germany must be able to receive e-invoices. An email inbox is sufficient for this. How the invoice is then checked and posted is a separate question.
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from 01/01/2027
Send with prior-year revenue above €800,000
Companies with more than €800,000 revenue in the previous year must issue e-invoices for domestic B2B transactions. Paper and PDF invoices then remain permitted only for companies below the threshold.
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from 01/01/2028
Send for everyone
The transition period ends for all companies. Invoices exchanged via EDI must then also meet the requirements for e-invoices.
What applies until then
For transactions in 2025 and 2026, all companies may still issue paper invoices; other electronic invoices, such as PDF, only with the recipient’s consent. In 2027 this applies only to companies with prior-year revenue of up to €800,000. EDI procedures remain permitted until the end of 2027, even if they do not comply with EN 16931.
What the Federal Ministry of Finance letter of 15 October 2026 clarifies
The German Federal Ministry of Finance (BMF) has published supplementary rules for the third time. The description of the supply must be stated in the structured data record clearly enough to verify the VAT rate and the input tax deduction. A file that only violates a business rule generally remains an e-invoice. Anyone who issues a paper or PDF invoice despite the obligation does not commit an administrative offence – but the invoice is not a proper invoice.
Does this invoice have to be an e-invoice?
Every company in Germany must be able to receive. For issuing, go through the following questions in order. As soon as an answer leads to an exception, there is no e-invoicing obligation for this invoice.
- Are you and your customer businesses established in Germany, and is the transaction taxable in Germany? no no e-invoicing obligation, for example for private customers or customers abroad
- Is the transaction VAT-exempt under Section 4 nos. 8 to 29 UStG? yes no e-invoicing obligation
- Is it a small-amount invoice of up to €250 gross? yes no e-invoicing obligation
- Is it a travel ticket? yes no e-invoicing obligation
- Are you a small business under the German small-business rule? yes no e-invoicing obligation; you may still issue e-invoices
XRechnung or ZUGFeRD: which format for which case
Both formats comply with EN 16931. They differ in whether a person can read the invoice without software.
| Feature | XRechnung | ZUGFeRD |
|---|---|---|
| Structure | pure XML data record | PDF file with embedded XML data record |
| Readable without software | no, needs a viewer or ERP system | yes, via the PDF image |
| What counts | the data record | the data record, not the PDF image |
| Valid as an e-invoice | yes | from version 2.x, without the MINIMUM and BASIC-WL profiles |
| Typical use | invoices to public authorities, increasingly also B2B | B2B, when the recipient also wants to see the invoice as a PDF |
Which format you issue usually depends on what your customers require. Creating both from SAP Business One is common; we clarify this in the assessment.
E-invoicing for outgoing invoices, incoming invoices and the archive
The obligation affects three places in the system. There is a building block for each; which of them you need depends on invoice volume, customers and your current archive.
-
1
Incoming invoice
- XRechnung or ZUGFeRD arrives as a data record and goes straight to checking.
- PDF invoice (while still permitted) is captured first and the data is extracted.
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2
Digital processing
- Checking
- Approval
- Posting in SAP Business One
- Audit-proof archiving in the original format
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3
Handover
- Postings and documents to the tax advisor or to third-party systems
SAP Business One and PDFMailer
Create and send outgoing invoices as XRechnung or ZUGFeRD
- SAP Business One includes functions for XRechnung and ZUGFeRD in its German localisation.
- PDFMailer by gotomaxx software GmbH creates documents as XRechnung or ZUGFeRD and sends them by email or as a letter via a service provider.
- Whether the standard is sufficient for your documents or PDFMailer is the better choice, we clarify using your invoice layouts.
B1ECM Invoice
Check, approve and post incoming invoices digitally
- Digital processing of incoming invoices with workflows and forms
- Automatic indexing of documents
- B1ECM is developed by init consulting AG and connects SAP Business One with ELO.
More on the process and the checks on the page Document management with B1ECM.
ELO with B1ECM
Retain e-invoices audit-proof in their original format
- Filing from SAP Business One directly into ELO, with indexing and search schemes
- Audit-proof archiving throughout the retention period
- init consulting AG has been a certified partner of ELO Digital Office GmbH since 2015.
Five steps to e-invoicing in SAP Business One
If you have to send from 2027, use 2026 for setup and testing. The order in which we proceed with you:
Consultation
We clarify your stage, your volume of outgoing and incoming invoices and what your customers already require today. Bring a typical outgoing and incoming invoice.
Assessment
We check the release and localisation of your SAP Business One, your invoice layouts and your current archive. This shows which building blocks you need.
Set up outgoing invoices
Format, delivery channel and mandatory data in the data record are set up, and the description of the supply in your documents is checked.
Set up incoming invoices and archive
Receiving address, checking and approval workflow and filing in the original format are set up and described in the process documentation.
Test, go-live and operation
Test invoices with selected customers and suppliers, followed by go-live before your effective date. After that, support via ticket, hotline and remote access.
What this page and our consulting do not cover
We would rather answer these points here than in the first meeting.
No tax advice
Whether a particular invoice falls under the obligation, which revenue counts towards the €800,000 threshold and how special cases are handled is for your tax advisor to answer. We implement the technical side in SAP Business One.
A PDF from SAP Business One is not enough
An invoice that leaves the system as a PDF by email is not an e-invoice – not even with a proper layout. The structured data record is required.
Receiving is not processing
An email inbox fulfils the obligation to receive. Someone still has to check, post and archive the invoice in its original format. Without processing, the XRechnung lands in accounting as an unreadable XML file.
The PDF image alone is not an archive
The data record must be retained in its original format. Filing only the view of an e-invoice does not meet the retention obligation.
Germany only
The deadlines on this page apply to Germany. For companies in Austria, Switzerland and other countries, separate rules apply, which we clarify separately in the project.
Your involvement is still needed
Customers, suppliers and tax advisor have to take part: collecting receiving addresses, exchanging test invoices, agreeing the process documentation. No add-on can take this part off your hands.
Terms used on this page
- E-invoice
- An invoice in a structured electronic format according to the European standard EN 16931 that allows electronic processing.
- Other invoice
- Any invoice that is not an e-invoice: paper invoice, PDF invoice, scan or image file (in German: sonstige Rechnung).
- XRechnung
- A German e-invoice format that transmits the invoice as a pure XML data record.
- ZUGFeRD
- A hybrid e-invoice format: a PDF file with an embedded XML data record. The data record is what counts.
- EN 16931
- The European standard for electronic invoicing. The format of an e-invoice must comply with it.
- Small-amount invoice
- An invoice of up to €250 gross. It may permanently be issued as an other invoice.
- EDI
- Electronic data interchange between business partners in an agreed format. Permitted until the end of 2027 even if the format does not comply with EN 16931.
- Audit-proof archiving
- Retaining documents so that they remain complete, unchanged and readable throughout the entire retention period.
Questions about e-invoicing with SAP Business One
When do we have to start sending e-invoices?
That depends on your revenue in the previous year. With more than €800,000, from 1 January 2027; otherwise from 1 January 2028. You have had to be able to receive e-invoices since 1 January 2025. The obligation applies to invoices to businesses that, like you, are established in Germany.
Is it enough to send invoices as a PDF by email?
No. A PDF invoice is not an e-invoice but an other invoice. It is only permitted during the transition period and only with the recipient’s consent. An e-invoice requires a structured data record, for example as XRechnung or ZUGFeRD.
Can SAP Business One create XRechnung and ZUGFeRD invoices?
The German localisation of SAP Business One includes functions for XRechnung and ZUGFeRD. Alternatively, PDFMailer creates and sends documents in both formats. Which route suits your release, your invoice layouts and your volume, we clarify in the consultation.
How do we process incoming e-invoices in SAP Business One?
With B1ECM Invoice, the incoming invoice processing by init consulting AG. Incoming invoices are indexed, checked and approved in a workflow, posted in SAP Business One and archived in ELO. Details on the page Document management with B1ECM.
How long and in what form must e-invoices be retained?
Eight years, in the original format. The data record is archived, not just a PDF view. It must remain complete, unchanged and readable for the entire period. An audit-proof archive such as ELO ensures this.
What happens if an e-invoice contains errors?
That depends on the error. If the format is wrong, the file does not count as an e-invoice and the recipient has to request a correct one. If it only violates a business rule, it generally remains an e-invoice. If mandatory details are missing, the recipient’s input tax deduction is affected until a corrected e-invoice is available.
We do not use SAP Business One yet. Is e-invoicing a reason to switch?
For many companies, e-invoicing is the point at which an old merchandise management or accounting system can no longer keep up. Whether switching to SAP Business One makes sense for you, we clarify in the consultation. The cost factors are on the page Prices and costs.
Who supports us after the changeover?
The same team that implemented it. init consulting AG offers ticket support, a telephone hotline and remote access as well as maintenance and version upgrades. To support
Clarify your e-invoicing in a consultation
Bring a typical outgoing invoice, an incoming invoice and your SAP Business One release. We tell you which stage applies to you, what your system can already do and which building blocks are missing.
Direct contact
- Phone
- +49 8456 2 78 04-0
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