Questions and answers on electronic invoices – e-invoices
General information on e-invoices
What is an e-invoice? What are the advantages of electronic invoices? And how do e-invoices replace other invoice formats?
On this page we will answer frequently asked questions about electronic invoices:
What is an e-invoice?
An electronic invoice – or e-invoice for short – is an invoice in the form of a structured electronic document. This makes it different from a paper invoice, a scanned paper invoice or an invoice in PDF format. The e-invoice is generated, transmitted, received and processed completely electronically.
The structured format contains all invoice data that has previously been included on paper invoices or in PDF files. E-invoicing enables the seamless, automatic, and direct electronic processing of invoice data.
In Germany, electronic invoicing for invoice exchange with public authorities under the E-Invoicing Ordinance (E-Rechnungsverordnung) in 2020. From January 2025, it will also be mandatory in the B2B sector (Growth Opportunity Act (Wachstumschancengesetz).
What are the benefits of e-invoicing?
The e-invoice replaces the paper invoice and all data formats previously used in the billing process. This brings significant benefits for your financial process.
The exchange of electronic invoices in a standardized digital format enables the complete automation of your processes and guarantees the direct transfer to processing systems.
This makes the electronic exchange of invoices between suppliers and clients much more efficient. In particular, companies that process a large number of orders in particular will benefit from this service. They automate their processes, create legally compliant invoice documents, process them seamlessly and can expect immediate payments.
Last but not least, the introduction of electronic invoicing eliminates costs that were incurred through paper invoices and other data formats – expenses for manual processing, but also for paper, mailing and document storage.
Is a pdf an e-invoice?
A PDF invoice is not an e-invoice. It does not matter whether it was generated directly as a PDF file in a billing system or scanned from a paper invoice. The invoice as a PDF file may have been created, transmitted and received in an electronic format, but it still is only the digital image of an invoice that cannot be processed automatically or electronically. This includes other file formats such as .jpg, .tiff or .docx.
In terms of processing, PDF invoices hardly differ from paper invoices. Although you no longer have to scan them, the invoice data still has to be transferred to the accounting system manually or via other systems.
PDF invoices therefore do not comply with the Directive on electronic invoices applicable in the European Union.
Which data does an e-invoice include?
On the one hand, an electronic invoice includes the data required in paper invoices:
- Invoice number
- Payment conditions
- Bank details
- VAT identification number
On the other hand, e-invoices require an “electronic address” for the invoice issuer and the invoice recipient. This information allows the sender and recipient to be clearly identified and must comply with the EU-regulated Electronic Address Scheme (EAS).
