Germany’s e-invoicing transition is already underway. Since 1 January 2025, businesses have been required to receive electronic invoices for relevant domestic B2B transactions. The obligation to issue e-invoices is being introduced gradually, with further deadlines approaching.
For organisations running SAP, this is more than a change in invoice format. It affects invoice processes, master data, integrations and the way electronic documents are exchanged and monitored.
So, what does the German e-invoicing mandate mean for SAP customers?
What is changing in Germany?
Under the German rules, an e-invoice is a structured electronic invoice that can be processed automatically. A conventional PDF sent by email does not meet this definition.
The requirements are based on the European EN 16931 standard, with formats such as XRechnung and ZUGFeRD relevant in Germany.
The transition is phased:
- Since 1 January 2025: businesses must be able to receive e-invoices for relevant domestic B2B transactions.
- Until 31 December 2026: businesses can generally continue to issue other types of invoices under the transition rules.
- Until 31 December 2027: an extended transition applies to businesses with previous-year turnover of up to €800,000.
- From 2028: e-invoicing becomes mandatory for relevant domestic B2B transactions, subject to the applicable rules and exceptions.
The transition period gives businesses time to prepare, but the work should start well before the final deadline.
What does this mean for SAP customers?
The German mandate affects both outbound and inbound invoicing.
For outbound invoices, SAP needs to be able to generate the required structured data and support its validation and electronic exchange.
For inbound invoices, companies need to be able to receive, validate and process structured e-invoices within their existing financial processes.
This also raises questions around:
- invoice and master data;
- connectivity;
- monitoring and status handling;
- rejected invoices and corrections; and
- integration with other European e-invoicing requirements.
E-invoicing is therefore not simply a compliance or formatting exercise. It is also an SAP architecture and business-process topic. Depending on the set-up of your sales billing process and the different process flows, the implementation project can becomes quite complex.
How can SAP Document and Reporting Compliance help?
SAP Document and Reporting Compliance (DRC) provides capabilities for electronic documents and statutory compliance within SAP.
Depending on the SAP product, release and business scenario, DRC can support electronic document generation and transformation, validation, exchange and status monitoring.
For German e-invoicing, this can help organisations integrate structured invoicing into their existing SAP processes rather than creating separate manual workflows.
For international organisations, DRC can also provide a foundation for addressing e-invoicing requirements across countries in the world.
How should you prepare?
We recommend focusing on three areas:
- Assess your SAP landscape
Identify where invoices are created and received and determine how SAP DRC fits into the architecture. - Review your data and processes
Check invoice and master data, as well as outbound and inbound processes, for potential gaps. - Test the complete process
Make sure your solution can handle invoice creation, validation, exchange, status updates and exceptions, not just the successful scenario.
Starting early gives Finance, Tax and IT time to align and reduces the risk of a last-minute compliance project.
Germany is part of a wider European landscape
Germany is not the only European country introducing new e-invoicing requirements.
Expertum has already supported implementations for Belgium, France, Romania and Poland.
Slovakia is another market to prepare for, with mandatory e-invoicing from 1 January 2027 on a Peppol-based exchange model.
For international SAP organisations, Germany is therefore an opportunity to build an e-invoicing architecture that can scale beyond a single country.
Frequently asked questions
Is e-invoicing already mandatory in Germany?
Businesses have been required to be able to receive e-invoices for relevant domestic B2B transactions since 1 January 2025. The obligation to issue e-invoices is being introduced through transition periods.
Can companies still send PDF invoices?
During the applicable transition periods, certain alternative invoice formats can still be used. A standard PDF, however, is not considered an e-invoice under the new German definition.
Does SAP DRC support German e-invoicing?
SAP Document and Reporting Compliance provides electronic document and compliance capabilities within SAP. The exact functionality depends on the SAP product, release and business scenario.
Prepare your SAP landscape for German e-invoicing
The German transition is already underway. Preparing now gives your organisation the opportunity to meet the upcoming requirements while building a scalable approach for future European e-invoicing mandates.
At Expertum, we help organisations implement SAP Document and Reporting Compliance and integrate e-invoicing into their SAP landscape.
Want to know what German e-invoicing means for your organisation? Get in touch with our SAP DRC experts.
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Cindy is based in Belgium.
