An XRechnung is not a prettier invoice. It is a structured XML file, meant to be read by software rather than a person, and it is the format German public bodies require. If a client has asked you for one and sent back your PDF, this page explains what they actually want and why nothing you can do in a word processor will produce it.
The rules below come from German legislation published only in German. What follows is an accurate summary written for people who cannot read the source. Where it is silent or ambiguous, the German text governs — not this page.
What an e-invoice actually is
German law draws a line that most people find surprising: a PDF is not an electronic invoice. Neither is a scan, and neither is a photograph of a printed one. An e-invoice in this sense is a file in a structured format that a machine can read without anyone retyping it — issued, transmitted and received electronically end to end.
The underlying standard is European: EN 16931, which defines what an invoice must contain and how it is encoded. XRechnung is the German profile of that standard — the same rules with some national specifics added. Two syntaxes are allowed for the same content, CII and UBL, and the sender chooses which one to use.
Who has to do what, and from when
The obligation arrived in two halves, and confusing them is the single most common mistake. **Receiving** came first and applies to everyone already. **Issuing** is being phased in and depends on your turnover.
| From | What applies | To whom |
|---|---|---|
| 1 January 2025 | You must be able to **receive** e-invoices. An email inbox is generally enough — no portal or special software is required. | All domestic businesses, for domestic B2B |
| 2027 | You must **issue** e-invoices for domestic B2B. | Businesses with more than €800,000 turnover in the previous year |
| 2028 | You must **issue** e-invoices for domestic B2B. | All remaining domestic businesses |
Until the issuing obligation reaches you, you may keep sending paper or PDF invoices — provided the recipient agrees. What you cannot do is refuse to receive an e-invoice someone sends you.
Two groups are treated differently. Small-amount invoices and travel tickets are largely exempt from the issuing obligation. Businesses using the Kleinunternehmerregelung (the German small-business VAT scheme) are also largely exempt from issuing — but, like everyone else, they still have to be able to receive.
Public-sector clients are a separate matter and predate all of this: invoicing a German federal authority has required an XRechnung for years, whatever your turnover.
What you need before you can send one
- Everything an ordinary invoice needs — your details, the client’s, a unique number, dates, line items and the VAT breakdown.
- For public bodies, a Leitweg-ID — a routing address inside the authority. It is the most common reason an otherwise correct invoice is rejected.
- An electronic address for both parties, which in practice is usually an email address.
- A tax category on every line, and a stated reason whenever the rate is 0%.
How to produce one
You cannot write XML like this by hand in any reasonable amount of time, and you should not try — the rules about which fields depend on which other fields are the part that catches people out. There is a free XRechnung generator here that takes a form and gives you the file, with no account. If you have been sent one and cannot read it, the viewer renders it as an ordinary invoice in your browser.
Common questions
The issuing obligation covers domestic B2B — businesses established in Germany invoicing each other. If you are abroad, it does not oblige you. Your German client may still ask for an e-invoice because it suits their own bookkeeping, and a public body will require one regardless. See invoicing German clients from abroad.
Between businesses, only while the transition still allows it and only if your client agrees. To a public authority, generally no — that has needed a structured invoice for years.
An email address is normally enough. The obligation is to be able to accept the file, not to buy a system for it. Reading it is a separate problem, and the free viewer solves that.
Not quite. XRechnung is one format that satisfies the e-invoice rules; there are others. The practical difference between them is covered in the comparison of the formats.
InkVoice produces XRechnung files from your saved invoices, keeps your clients and tracks what has been paid — free for 5 clients and 10 invoices a month, no credit card, with the whole interface in six languages.
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