Mandatory Implementation of Electronic Billing in Germany Begins in 2025
Simplifying Electronic Invoicing in Germany with PEPPOL
The Pan-European Public Procurement Online (PEPPOL) network is revolutionizing the way businesses and public administrations in Germany exchange electronic invoices. This secure, interoperable digital infrastructure, developed by the EU, is becoming the preferred system for Business-to-Government (B2G) transactions in the country [1][4].
In Germany, PEPPOL is particularly useful for companies dealing with large volumes of invoices. By using a single, standardized access point, businesses can send electronic invoices to multiple government entities and trading partners efficiently [1]. The network supports the XRechnung format, an EU-compliant structured invoice format, ensuring compliance with German and EU e-invoicing regulations [2].
A key aspect of PEPPOL's operation in Germany is its decentralized model. Businesses choose their own certified service providers or platforms (Peppol Access Points) to send or receive compliant e-invoices, with these providers handling secure transmission, format validation, and archiving [2]. Participants in the network use unique Peppol identifiers, following a federated system based on ISO 15459 standards, to identify senders and receivers [3].
While Germany offers a governmental platform for invoice submission, the PEPPOL network is favoured for its efficiency and scalability, especially for higher invoice volumes [1]. Businesses often integrate PEPPOL transmission into their accounting or ERP systems or use third-party certified e-invoicing service providers to ensure compliance with German regulations [1][2][4].
PEPPOL supports hybrid invoices, which include a structured information part (such as XML) and an unstructured but human-readable part (e.g., a PDF document), as long as both formats are combined into a single file [5]. However, email transmission of electronic invoices may not be considered secure for fiscal purposes [6].
For an electronic invoice to be considered valid, it must contain mandatory data for VAT purposes, such as the invoice number, complete supplier and customer data, and the amount [6]. The German Federal Ministry of Finance has mandated that electronic invoices exchanged with German companies must comply with the European e-invoicing standard and the relevant syntax list according to Directive 2014/55/EU of the European Parliament [7].
PEPPOL was initially developed to simplify public procurement processes and promote transparency and competition among businesses [8]. Today, it serves as a standardized, secure network infrastructure in Germany, facilitating the automated and compliant transmission of electronic invoices, supporting both national regulations and cross-border interoperability within the European Digital Single Market [1][2][4].
References:
- https://ec.europa.eu/info/business-economy-euro/digital-single-market/e-invoicing-and-standardisation/peppol_en
- https://www.zugferd.org/de/ueber-uns/peppol/
- https://www.iso.org/standard/43276.html
- https://www.de-wi.de/de/themen/digitale-wirtschaft/elektronische-rechnungen/peppol/
- https://ec.europa.eu/info/business-economy-euro/digital-single-market/e-invoicing-and-standardisation/peppol_en#hybrid-invoices
- https://ec.europa.eu/taxation_customs/business/company/vat/invoicing_en
- https://ec.europa.eu/info/business-economy-euro/business-environment/business-law/company-law/electronic-invoicing-and-e-invoicing-standards_en
- https://ec.europa.eu/info/business-economy-euro/digital-single-market/e-invoicing-and-standardisation/peppol_en#peppol-network
The PEPPOL network, used for Business-to-Government (B2G) transactions in Germany, is a valuable tool for companies dealing with large volumes of invoices, as it allows for efficient electronic invoicing to multiple entities within the country [1]. In the realm of finance and business, PEPPOL supports the XRechnung format, ensuring compliance with both German and EU e-invoicing regulations [2].
