Benefits and Legal Obligation (in Germany) of using electronic invoices
Electronic invoices are an increasingly common way to bill products and services. Compared to the classic paper invoice, you save time (e. g. for creation, transport and processing) and costs, as well as natural resources (paper).
Even more important: in Germany, on January 1, 2025, a new legal obligation comes into force. It stipulates by law to use electronic invoices in billing processes between companies (B2B sector) based in Germany. From that date, the law requires that electronic B2B invoices must have a structured XML format instead of unstructured formats like for example simple PDF or Microsoft Word.
From January 1, 2025, more specifically this means that all of these companies must be able to receive electronic invoices, while staggered transitional regulations apply with regard to the issuing of such invoices in the B2B sector. From January 1, 2028, the new requirements for e-invoicing in the B2B sector will then be generally applicable. According to the new regulations, currently only a few exceptions apply, for example for travel tickets or for sales to foreign companies.
XRechnung and ZUGFeRD are German e-invoicing standards, and FACTUR-X is a French standard. All three transform the European standard for electronic invoicing EN 16931-1 into national law and thereby implement Directive 2014/55/EU of the European Parliament and the Council.
What is required for efficient electronic invoice processing? Generally recognized, uniform standards that are easily applied in practice. This is especially true in the general case that buyer and seller do not use the same invoicing and accounting software. The PDF Xpansion SDK product offers these standards and corresponding functionality.
The product supports all officially published standards of the the electronic invoicing specifications FACTUR-X, ZUGFeRD and XRechnung. All of them are compliant with the standard EN 16931-1. While XRechnung only needs a structured XML file that can be read/loaded by appropriate accounting programs or billing systems directly, ZUGFeRD and FACTUR-X consist of a PDF/A3-file that is the visual representation of the invoice (just like a “simple” PDF file, for example based on a Microsoft Word document) plus a structured XML file with the invoice content. This XML file can be read/loaded by appropriate accounting programs or billing systems as well.
Feature sets of PDF Xpansion SDK - E-Invoicing (Invoice Creation)
The product is made to create electronic invoices that have the specifications FACTUR-X, ZUGFeRD or XRechnung. It offers the following:
- Creation of XML invoices (XML files) with PDF Xpansion SDK API (structured according to UN/CEFACT CII syntax, including save in UN/CEFACT CII or UBL syntaxes), support of all profiles defined in the three specifications, and of the XRechnung Extension.
- Create e-invoice/e-order (PDF/A file) using compliant e-invoice/e-order (XML file) and already existing PDF file, including converting to PDF/A-3, support of all profiles defined in the three specifications, and of the XRechnung Extension.
Example scenario for Factur-X/ZUGFeRD invoice creation
- Open an existing PDF file (= visual representation of the invoice).
- Convert PDF to PDF/A-3.
- Embed the Factur-X/ZUGFeRD-compliant XML file in PDF/A-3 file or first create this XML file with the PDF Xpansion SDK API and then embed it. In both cases, all Factur-X/ZUGFeRD profiles are supported.
- Save the Factur-X/ZUGFeRD file (PDF/A-3).
