XRechnung in Germany

XRechnung and its rollout in Germany: a technical overview

As part of the digital transformation wave, Germany has made significant progress with the introduction of XRechnung, a standardized electronic invoicing format. This move aligns with a broader European directive aimed at improving efficiency, transparency, and interoperability in public procurement processes across Europe.

What is XRechnung?

XRechnung is an XML-based electronic invoicing standard developed to comply with the European Norm EN 16931. Initially applied to transactions between businesses and public administrations, XRechnung will become the mandatory standard for domestic B2B invoicing in Germany by January 2025.

Key features of XRechnung

1. Standardization: XRechnung provides a uniform structure for electronic invoices, ensuring consistency across different systems and platforms.
2. Compliance: it adheres to the European Norm EN 16931, ensuring that invoices meet the EU’s legal requirements for electronic invoicing.
3. Interoperability: the format is designed to be compatible with various ERP systems, making it easier for businesses to integrate into their existing workflows.
4. Security: XRechnung includes features to ensure the authenticity and integrity of the invoice data, offering a secure approach to electronic invoicing.

Challenges and considerations

1. Integration: businesses need to ensure that their ERP systems are compatible with XRechnung or partner with a reliable EDI provider who can handle invoice conversion.
2. Compliance: maintaining compliance with legal and technical standards is critical and can be outsourced to trusted EDI partners.

Conclusion

The rollout of XRechnung represents a significant milestone in Germany’s digital transformation, particularly in public procurement. By adopting this standardized invoicing format, both businesses and public administrations can achieve greater efficiency, transparency, and interoperability. Understanding the technical and legal aspects of XRechnung is crucial for successful implementation and reaping the full benefits of this shift.