eInvoices to authorities to become mandatory

German Federal Government adopts the E-invoice regulation (E-Rech-VO) in order to implement EU Directive 2014/55/EU in Germany

With the adoption of the e-Invoice Regulation (ERechV), the EU Directive 2014/55/EU will be implemented into national law. The eInvoice regulation is often referred to as the eInvoice law and will first come into force for federal authorities and then for authorities in federal states and municipalities.

Find out the latest news and stay up-to-date on the topic of eInvoices to authorities.

What does this mean for you as public sector supplier?

If you supply products or services to a public authority, you need to make sure that electronic invoices are sent out on time in XRechnung format. No later than on 27/11/2018, federal authorities are obliged to offer the acceptance of electronic invoices subject to the eInvoice regulation. This applies to federal states and municipalities from 27/11/2019. As a supplier, as of 27/11/2020, you have to deliver your invoices in the form of eInvoices to customers and thus to invoice recipients from the federal government, states and local authorities, incl. their wholly owned subsidiaries, in accordance with the eInvoice regulation.

Excluded from this obligation are invoices for direct orders up to a value of €1000 and invoices for defence and security-related orders, or for orders that concern the foreign service and the other procurements made abroad.

What form does an electronic invoice take according to the eInvoice regulation or eInvoice law?

Depending on the authority, you will have to submit invoices electronically from the date when the regulation enters into force. In doing so, however, an electronically transmitted invoice in the form of a simple pdf file, for example, will not be accepted. An electronic invoice is understood to mean a document in the form of structured data in the agreed-format as an XRechnung that withstands a format check by the recipient. As stated in the e-invoice regulation (incl. justification of the bmwi), the use of the established ZUGFeRD standard in the further developed version 2.0, which corresponds to the EU standard, is also advocated.

The XRechnung contains all the information in purely structured form as an XML file. Alternatively, other formats are also permitted provided that they comply with the requirements of the European standard (EN 16931) for electronic invoicing.

The following information is also required in addition to the VAT components: route identification number, bank details, terms of payment, e-mail address of the invoicing party and, if provided in the order, the supplier and order number.

How are eInvoices to be sent to authorities?

Electronic invoices will be sent over an administrative portal belonging to the authorities.

Several ways will be available to do this:

  • Manual entry using a web form
  • As an email or DE-mail attachment (expected to be discontinued in 2023)
  • Via web services/file upload

The invoicing party or invoice recipient must have previously registered to use the administration portal.

Make sure you are prepared on time for the new requirements of the eInvoice law!

As a public sector supplier, you should make sure you prepare for the new requirements in good time. Benefit from the advantages to you and your customers and register early. You get to benefit directly from processes that are free of media disruptions from the point of invoicing to the receipt of payment. We will be happy to support you with your conversion to electronic invoicing so that it complies with the new eInvoice regulation.

As a service provider in the field of electronic invoicing, a member of the association of electronic invoicing “Verband elektronische Rechnung (VeR)”, we remain at the cutting edge on your behalf and address the conditions that will allow you to meet the requirements of the e-invoice regulation in good time so that the jobs contracted to you by the public sector can be settled correctly.

In addition, information is always available on the VeR website regarding the E-Invoice regulation of 2018.