E-Invoicing Transition Periods – Key Deadlines Companies Need to Know

The new e-invoicing transition periods are currently among the most important topics in finance and tax. With the gradual introduction of mandatory B2B e-invoicing, invoicing in Germany is undergoing a fundamental shift. Companies will need to be able to receive, process, and, in the long term, issue electronic invoices.

The transition from traditional PDF or paper invoices to fully structured electronic invoices is particularly important. However, many companies underestimate the organisational, technical, and legal impact of the new requirements.

The e-invoicing transition periods affect not only large enterprises, but also small and medium-sized businesses that need to adapt their ERP, SAP, and finance processes in good time.

In this guide, you will learn:

• which e-invoicing transition periods apply from 2025
• by when companies must be able to receive and issue e-invoices
• which transitional rules and exemptions exist
• which formats, such as XRechnung and ZUGFeRD, are relevant
• how companies can prepare both organisationally and technically
• which risks arise if deadlines are missed
• what role SAP, workflows, and automation play

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Table of Contents

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Fundamentals – What do e-invoicing transition periods mean?

The e-invoicing transition periods define the timeframe within which companies must gradually convert their invoicing processes to electronic invoices. They are part of the statutory introduction of mandatory e-invoicing in the German B2B sector.

The purpose of these deadlines is to give companies sufficient time to adapt their processes from both a technical and organisational perspective. At the same time, they are intended to ensure that the transition to structured electronic invoices is as smooth as possible.

An electronic invoice differs fundamentally from a conventional PDF invoice. While PDFs are merely visual documents, genuine e-invoices contain structured datasets that can be processed automatically.

The most important formats include:

• XRechnung
• ZUGFeRD
• XML-based e-invoicing formats
• PEPPOL BIS

The new e-invoicing transition periods therefore mark the beginning of a comprehensive digital transformation in accounting.

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Why is mandatory e-invoicing being introduced?

The introduction of mandatory e-invoicing is part of a Europe-wide strategy to digitise tax processes. The key drivers include greater tax transparency, the reduction of VAT fraud, real-time reporting, more efficient finance processes, and increased automation.

At the centre of this development is the European Union’s “VAT in the Digital Age” (ViDA) initiative. Its objective is to standardise digital reporting and invoicing processes across Europe.

With the new e-invoicing transition periods, Germany is following this European trend. Companies are expected to gradually move toward digital and structured invoicing processes.

This transition affects not only invoice creation, but also invoice receipt, processing, archiving, compliance, and ERP integration.

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Legal basis for the e-invoicing transition periods

The legal framework is primarily based on the Growth Opportunities Act, the German VAT Act, European e-invoicing requirements, EN 16931, and future ViDA regulations.

The most important change is that, from 1 January 2025, companies must generally be able to receive electronic invoices.

This marks the practical start of mandatory e-invoicing in Germany.

A key point is that, for tax purposes, an e-invoice only qualifies as such if it is issued in a structured electronic format that can be processed automatically.

PDFs will no longer automatically qualify as e-invoices.

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Which e-invoicing transition periods apply from 2025?

The new e-invoicing transition periods will be introduced gradually.

From 1 January 2025 – mandatory receipt

From this date, companies must be able to receive e-invoices.

This means that structured invoice formats must be processable, companies need suitable systems, and ERP and SAP landscapes must be prepared.

In many cases, sending PDF invoices will initially remain possible.

Transition phase from 2025 to 2027

During the transition phase, certain simplifications apply.

Paper and PDF invoices may still be used in some cases, but only under specific conditions.

One important point is that the recipient’s consent will continue to play a role.

From 2027 – extended obligations

Stricter requirements will apply earlier for larger companies.

In particular, companies with higher revenues will need to switch to structured electronic invoices more quickly.

From 2028 – full mandatory e-invoicing

From this point onwards, electronic invoicing is expected to become the general standard in the B2B sector.

Traditional PDF and paper invoices will then largely lose their relevance for tax purposes.

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What transitional rules apply?

The e-invoicing transition period includes various special rules and exemptions.

These apply in particular to small businesses, low-value invoices, travel tickets, certain industries, and companies with lower revenues.

The legislator has deliberately chosen a phased approach to give companies enough time to make the transition.

Nevertheless, companies should not underestimate the transition phase. Introducing new invoicing processes often affects ERP systems, interfaces, archiving, approval workflows, and compliance processes.

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What do the e-invoicing transition periods mean for SMEs?

Small and medium-sized businesses face particular challenges.

Many SMEs still work with PDF invoices, manual processes, paper-based approvals, and non-integrated systems.

The new e-invoicing transition periods force companies to digitise their processes more extensively.

This affects invoice receipt, invoice creation, archiving, ERP integration, and workflow management.

Companies should therefore analyse early which systems are already e-invoicing-ready, which interfaces are missing, and which processes need to be adapted.

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Which formats are affected by mandatory e-invoicing?

The new rules apply to structured electronic invoice formats.

The most relevant formats include XRechnung, ZUGFeRD, and PEPPOL BIS.

XRechnung

XRechnung is a purely XML-based format and is already established in the public sector.

Its key advantages are that it is standardised, legally compliant, and fully machine-readable.

ZUGFeRD

ZUGFeRD combines PDF and XML data.

This makes the format particularly suitable for hybrid B2B scenarios.

PEPPOL BIS

PEPPOL is becoming increasingly important across Europe.

International companies in particular are making greater use of PEPPOL networks.

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What applies to PDF and paper invoices during the transition phase?

Many companies are asking whether PDF invoices will remain permitted.

The answer is: partly yes, but only within the defined e-invoicing transition periods.

It is important to note that PDFs will not be regarded as fully valid e-invoices in the long term. Structured data will become mandatory, and companies should switch to XML-based formats early.

Paper invoices will also gradually lose relevance.

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Technical requirements for companies

To meet the requirements of mandatory e-invoicing, companies need several technical components.

These include ERP systems, SAP or other finance solutions, XML processing capabilities, interfaces, workflow solutions, and archiving systems.

The ability to automatically process structured invoice data is particularly important.

Learn more about SAP e-invoicing:
E-Invoicing with SAP

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SAP and ERP systems in the context of the e-invoicing transition periods

For many companies, SAP plays a central role in implementing the new requirements.

SAP Document and Reporting Compliance (DRC)

SAP DRC supports legal compliance, e-invoicing, format provisioning, and communication with authorities.

SAP DRC:
SAP Document and Reporting Compliance – Fink IT-Solutions

SAP Invoice Management by OpenText (VIM)

SAP VIM supports the automation of inbound invoice processing.

Its capabilities include workflows, validation, approval processes, archiving, and exception handling.

SAP VIM:
SAP Invoice Management by OpenText – Fink IT-Solutions

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Which organisational measures should companies implement now?

The e-invoicing transition periods require not only technical adjustments, but also organisational change.

Companies should analyse existing invoicing processes, define responsibilities, train employees, clean up master data, update process documentation, and integrate compliance processes.

A holistic approach is particularly important.

The transition does not only affect IT. It also involves finance, procurement, accounting, compliance, tax, and process management.

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What risks arise from delayed implementation?

Companies that ignore the e-invoicing transition periods risk significant issues.

These include breaches of tax requirements, problems during audits, inefficient processes, higher process costs, lack of scalability, and media breaks.

It becomes particularly critical if companies continue to rely exclusively on PDF or paper-based processes.

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Step by step – how companies can prepare

1. Analyse current processes

Companies should begin by analysing their current invoicing processes.

2. Define the target architecture

They should determine which formats will be used, which systems will be integrated, and which workflows will be required.

3. Prepare SAP and ERP integration

Existing systems must be made e-invoicing-ready.

4. Carry out a testing phase

Formats, interfaces, and workflows should be tested thoroughly.

5. Train employees

User adoption is critical to project success.

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Best practices for companies

Successful projects often follow similar principles.

Companies should start early, use standardised formats, prioritise SAP standards, automate processes, improve master data quality, and integrate compliance from the outset.

More insights:
SAP DRC Roadmap 2026

Further information:
Why ZUGFeRD Gets Expensive Without SAP DRC

SAP Invoice Management:
SAP Invoice Management

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Costs and project effort

Costs depend heavily on several factors.

These include company size, the existing ERP landscape, international scope, level of automation, SAP complexity, and invoice volume.

In practice, implementation projects often take several weeks to several months.

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The future of e-invoicing in Germany and Europe

The current e-invoicing transition periods are only the beginning of a broader digitalisation of tax processes.

In the future, real-time reporting, ViDA, PEPPOL networks, AI-based compliance, real-time tax reporting, and global e-invoicing platforms will become increasingly important.

Companies should therefore not only focus on short-term transition periods, but also develop long-term digital strategies.

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Conclusion

The new e-invoicing transition periods mark a fundamental shift in German accounting and invoicing.

Companies must address mandatory e-invoicing early and prepare both their technical and organisational processes.

The most important priorities are structured invoice formats, automated processing, SAP and ERP integration, compliance, and audit-proof archiving.

Companies that act early will benefit not only from regulatory certainty, but also from more efficient and highly automated finance processes.

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FAQ