E-invoicing is a key component of modern digital tax administration. Together with the German GoBD principles, it determines how businesses should organise their accounting processes in 2026. Since 2025, every business has been required to be capable of receiving electronic invoices. Companies that understand the requirements and implement them early save time, avoid issues during tax audits and, most importantly, remain compliant.
What is an e-invoice?
An e-invoice is much more than a PDF document. Under German law, it is primarily defined in Section 14(1), sentences 3 to 5 of the German VAT Act (UStG).
An e-invoice is an invoice in a structured electronic format that can be processed automatically by computer systems.
The most common e-invoice formats are:
- XRechnung – a structured data file without a visual document, and
- ZUGFeRD – a hybrid format combining a readable PDF with embedded structured data.
Note: A simple PDF sent by email does not meet the legal requirements for an e-invoice.
E-invoicing in 2026: who must do what and when?
Since 1 January 2025, every business, regardless of size or industry, has been required to be able to receive and process e-invoices. Relying solely on paper invoices is therefore no longer sufficient.
For issuing e-invoices, transitional periods apply:
- Until the end of 2026, businesses may continue to issue paper invoices or PDF invoices with the recipient’s consent.
- Smaller businesses with annual turnover of no more than €800,000 in the previous year may continue to do so until the end of 2027.
- From 1 January 2028, e-invoicing will become mandatory for all B2B transactions.
Exceptions apply only in limited cases, such as low-value invoices, transport tickets and invoices issued by small businesses benefiting from the small business VAT exemption.
Note: Issuing invoices correctly is also important because it safeguards your business partners’ entitlement to deduct input VAT.
GoBD: the foundation of legally compliant digital accounting
GoBD stands for the German principles governing the proper maintenance and retention of books and records in electronic form.
Put simply, the GoBD establish the rules set by the tax authorities for how digital records must be captured, processed and archived.
At their core, the GoBD require accounting records to be:
- complete,
- accurate,
- maintained in a timely manner, and
- properly organised.
Particular importance is placed on data integrity. Once a transaction has been recorded, it must not be altered without leaving an audit trail.
Businesses must also ensure:
- a documented and traceable process description explaining how documents move through their systems, and
- audit-compliant archiving procedures.
Simply storing documents in an email inbox is generally not sufficient.
Accounting records must be retained for several years. Since 1 January 2026, the standard retention period is generally eight years under both tax and commercial law.
Why are the GoBD important?
If a tax audit reveals significant deficiencies in accounting records due to non-compliance with the GoBD, the tax authorities may estimate taxable amounts.
Such estimates are often made to the disadvantage of the business. Compliance with the GoBD is therefore essential to reduce the risk of unfavourable assessments by the tax authorities.
Note: From 1 January 2027, payroll records must also be maintained in digital form. These records must likewise be archived in compliance with the GoBD and remain machine-readable. For further information, see our article “Digital payroll and employment record from 2027: why companies should act now”
How are e-invoicing and GoBD connected?
The e-invoicing rules determine whether invoices in the B2B sector must be issued, transmitted and received electronically and in which format.
The GoBD govern what happens afterwards. They establish how digital invoices must be processed, archived and made available for audits in order to avoid adverse tax assessments.
Moving to e-invoicing: not just an obligation but an opportunity
Any business wishing to maintain a modern, digital accounting function in 2026 cannot ignore e-invoicing.
It is important to remember that e-invoicing is not merely a regulatory requirement. It also delivers tangible benefits:
- incoming invoices can be automatically captured and posted,
- approval workflows can be handled digitally, and
- there is no longer any need to send physical document folders to your tax adviser at month-end.
As a result, e-invoicing not only supports legal compliance but also saves time, reduces manual input errors and provides more up-to-date financial information.
How to implement e-invoicing
Businesses should generally approach implementation in three steps:
- Verify that e-invoices can already be received and archived correctly.
- Select a suitable format and GoBD-compliant software solution, for example cloud-based systems such as DATEV Unternehmen online.
- Document internal processes and responsibilities in a formal process description.
Because e-invoicing and GoBD compliance are closely linked, it is also advisable to involve your tax adviser at an early stage.
This helps identify and close organisational and legal gaps before they become an issue during a tax audit, turning digitalisation from a compliance exercise into a genuine efficiency gain.
For further information, see our related articles:
“E-invoicing: turbocharging digital accounting and smart workflows”
“E-invoicing from 2025: chore or efficiency booster?”
E-invoicing: a key building block for efficient digital tax processes
Many businesses view e-invoicing primarily as a compliance burden. However, this perspective does not fully reflect its strategic value.
In reality, e-invoicing is an important step towards well-organised digital tax processes. Only the combination of e-invoicing, GoBD-compliant documentation and clearly defined responsibilities creates the foundation for efficient and audit-ready tax administration.
For many businesses, the introduction of e-invoicing therefore represents an opportunity to review and optimise their accounting and tax processes as a whole—from document capture and approval workflows through to collaboration with tax advisers and tax authorities.
Want to know where your business stands?
Would you like to assess your company’s readiness for e-invoicing and GoBD compliance?
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Do you have questions about digital tax advisory services in 2026?
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Simply book an appointment using one of the scheduling options provided.
Yours sincerely,
Hannes Pritzl
Your ACCONSIS contact
Hannes Pritzl
Graduate in Finance (University of Applied Sciences)
Tax consultant
Service phone
+49 89 547143
Email
h.pritzl@acconsis.de
FAQ – answers to frequently asked questions about digital tax advisory services
1. When does e-invoicing become mandatory for businesses?
All B2B businesses in Germany have been required to be able to receive e-invoices since 1 January 2025. Transitional periods apply to issuing e-invoices. From 1 January 2028, e-invoicing will become mandatory for all B2B transactions.
2. Does a PDF qualify as an e-invoice?
No. A PDF is not considered an e-invoice. A genuine e-invoice must be issued in a structured, machine-readable format, such as XRechnung or ZUGFeRD. A standalone PDF is legally classified as a conventional electronic invoice rather than an e-invoice.
3. What does GoBD-compliant mean?
GoBD compliance means that digital accounting records are complete, accurate, timely, properly organised and protected against unauthorised alteration. It also requires audit-proof archiving and a clear, traceable process documentation describing how accounting records are created, processed and stored.
4. What happens if a business fails to comply with the GoBD requirements?
Significant breaches of the GoBD or major deficiencies in accounting records may allow the tax authorities to estimate a company’s taxable income or tax bases. In addition, the right to deduct input VAT may be jeopardised if invoices do not meet the applicable legal requirements.
