E-invoicing obligation in Germany: what freelancers need to know

Since 2025, e-invoicing in German B2B is becoming mandatory in stages. For freelancers and small businesses that sounds like extra work at first, but in practice it is not, once you know what applies. This article sums up the essentials in plain words. It is general orientation and does not replace tax advice.

What applies since 1 January 2025

The most important point first, and it affects everyone: since 1 January 2025 every business established in Germany must be able to receive e-invoices. That includes freelancers and small businesses. In practice this means you need at least a way to accept and read an XRechnung or a ZUGFeRD PDF. An inbox is enough. The file usually arrives by email.

When you have to issue e-invoices yourself

The obligation to actively issue e-invoices is being introduced in stages. There are transition periods, and smaller businesses have longer:

• In 2025 and 2026, invoices between businesses may in many cases still be sent as paper or a simple PDF, if the recipient agrees.
• For businesses with prior-year turnover up to 800,000 euros, this transition period is expected to run until the end of 2027.
• From 1 January 2028, e-invoicing is intended to be mandatory throughout domestic B2B.

The exact deadlines and thresholds may still change, and the details depend on your situation. When in doubt, ask your tax adviser. But the direction is clear: the e-invoice is becoming the norm, and being comfortable with it early means no stress later.

Does this also apply to small businesses under § 19 UStG?

As a small business you are affected by receiving, and in due course you will be affected by issuing. An e-invoice does not rule out the small-business scheme: you still show no VAT, and that detail belongs in a structured invoice just as it does in a paper document.

The easiest first step is to create an e-invoice yourself once, to see how straightforward it is. With Invograde you enter your invoice data into a form and download a checked XRechnung or a ZUGFeRD PDF, free and without accounting software. We produce and check the file; sending it to your customer stays with you.