Germany changed the tax definition of an electronic invoice for domestic business transactions from January 1, 2025. A simple PDF is now an “other invoice,” not a structured E-Invoice. The implementation is gradual, so “mandatory since 2025” is true only with important context.
The timeline in plain language
| Date | Practical meaning according to the BMF FAQ |
|---|---|
| January 1, 2025 | Domestic businesses generally need to be able to receive structured E-Invoices |
| 2025 and 2026 | Issuers can still use other invoices under the general transition rule |
| 2027 | The transition continues for issuers with previous-year turnover up to EUR 800,000; qualifying EDI arrangements can also continue |
| January 1, 2028 | After the transition periods, structured E-Invoices become the regular requirement for covered domestic B2B transactions |
Exceptions and special cases remain. Small-value invoices, certain exempt transactions, small businesses as issuers, and B2G rules need separate review. The transaction date and status of both parties matter.
Receiving and issuing are different projects
Since 2025, a domestic business must generally be able to receive an E-Invoice. The BMF says an email inbox can be sufficient as a receiving channel. That does not mean the company can validate, display, approve, book, and archive the structured file well.
Issuing from Magento is another workflow. It starts with invoice data, then format creation and validation, delivery, error handling, and storage. Merchants should not wait until the last transition date to test the recipient's import.
Which formats count?
The BMF specifically names XRechnung and ZUGFeRD from version 2.0.1, except MINIMUM and BASIC-WL, as commonly used formats that generally meet the German tax requirements. Other EN 16931-based or agreed formats can also qualify when required data can be correctly and completely extracted.
A format name is not a compliance certificate. Missing mandatory data or illogical tax totals can still make an invoice defective. The BMF recommends validation because it helps catch such errors, although validation itself is not the direct condition for tax recognition.
What a Magento team should do now
- Identify domestic B2B, B2G, consumer, cross-border, and exempt invoice flows.
- Ask major recipients which formats, identifiers, and channels they accept.
- Clean seller details, VAT IDs, buyer references, payment terms, and tax mapping.
- Test normal invoices, corrections, and refunds.
- Define who handles rejected documents and how originals are preserved.
- Review the result with tax and legal advisers for the merchant's actual transactions.
SoftwareSilo can create several structured formats from Magento and automate document handling. It does not decide whether a transaction is legally covered, replace archival policy, or provide tax advice.
Related reading
- SoftwareSilo E-Invoice for Magento 2
- XRechnung vs ZUGFeRD
- Magento 2 E-Invoice implementation checklist
Sources
- German Federal Ministry of Finance E-Invoice FAQ, March 2026
- KoSIT XRechnung FAQ
- FeRD ZUGFeRD and Factur-X
Last reviewed: August 9, 2026. This article is general implementation information, not tax or legal advice.