XRechnung e-Invoice Germany: Complete Compliance Guide

We have put together frequently asked questions (FAQ) about XRechnung for you. With the help of the following answers, you can find out more about XRechnung in general terms.

What is XRechnung?

The XRechnung standard represents a national version of the European standard EN 16931. In Germany, XRechnung is a standard and file format for electronic invoices. It is used for invoices to authorities (B2G). The XRechnung can be used to specify the contents of the bills and thus continue to work electronically. Since it is binding for many companies and suppliers, the use of XRechnung is spreading rapidly.

When did XRechnung Start to be Implemented?

XRechnung is based on Directive 2014/55/EU of April 16, 2014, which was established by the European Union for B2G bills. On September 6, 2017, XRechnung was determined by means of the e-invoice regulation in Germany. From then on, the highest federal authority and constitutional organs had to be able to receive electronic invoices. Then it continued with other federal clients and public institutions at the state level.

When is XRechnung Necessary?

From November 27, 2020, electronic invoices submitted to public authorities must be sent in XRechnung format. Note that the €1,000 minimum order threshold has been removed in subsequent regulatory updates — XRechnung is now mandatory for all B2G invoices regardless of value. Companies supplying goods or services to German federal and state authorities must issue invoices in XRechnung format.

XRechnung 3.0: Latest Version

XRechnung 3.0 was released in 2023 and represents a significant update to the standard. It brings the format into closer alignment with the European standard EN 16931 and Peppol BIS requirements. Key changes in XRechnung 3.0 include mandatory use of the UBL or UN/CEFACT CII data model, improved handling of tax categories, and stricter validation rules. Organizations using XRechnung should ensure their systems support version 3.0 as older versions are being phased out.

Who is Under the XRechnung Obligation?

The XRechnung obligation particularly affects companies in Germany that invoice public institutions and authorities. From November 27th, 2020, companies and suppliers submitting invoices to public authorities must use the XRechnung format. Germany's e-invoicing regulations also align with the broader EU push toward mandatory B2B e-invoicing, which is expected to become law in Germany for all transactions in the coming years.

What is the file format of XRechnung?

An XRechnung is an XML-based invoice format with a .xml extension — it is a pure structured data record. XRechnung traces back to Directive 2014/55/EU and the EN 16931 standard. It can be rendered in two syntax flavors: UBL (Universal Business Language) and UN/CEFACT CII (Cross Industry Invoice).

XRechnung and Peppol: What is the Connection?

XRechnung and Peppol (Pan-European Public Procurement Online) are complementary frameworks. Peppol is a set of specifications that allow companies to exchange business documents including e-invoices across borders through the Peppol network. Peppol BIS Billing 3.0 is the most widely used Peppol invoice specification, and it is fully compatible with the EN 16931 standard — just like XRechnung.

For companies that need to send invoices both to German public authorities (XRechnung) and to international buyers or European public bodies (Peppol), having a solution that handles both formats is essential.

MDP Group offers Peppol e-invoice solutions that allow SAP users to send and receive Peppol-compliant invoices across Europe. Our solution covers the full Peppol document lifecycle: access point connectivity, document validation, delivery, and archive — all integrated with SAP. Contact us to learn more about our Peppol and XRechnung solutions.

How can XRechnung be Created?

You need software from a service provider to create XRechnung documents. MDP Group offers XRechnung Viewer and XRechnung Generator services so that you can create, convert and implement your invoices in compliance with the latest XRechnung standard. Our SAP-integrated solution automates the generation and transmission of XRechnung invoices directly from SAP, eliminating manual steps.

Which Regulator Regulates XRechnung?

The coordination office for IT standards (KoSIT) developed and still regulates the XRechnung. As a data exchange standard, XRechnung is operated by KoSIT on behalf of the IT planning council. KoSIT coordinates and designs the further development of XRechnung, and regularly publishes new versions including the current XRechnung 3.0.

Frequently Asked Questions

Is XRechnung mandatory for B2B invoicing in Germany?

As of 2024, XRechnung is mandatory only for B2G (Business-to-Government) invoicing in Germany. However, Germany has announced plans to introduce mandatory B2B e-invoicing requirements starting in 2025-2028, with a phased rollout. Businesses are encouraged to prepare their systems for B2B e-invoicing now to avoid last-minute compliance challenges. The German B2B e-invoicing mandate will likely accept both XRechnung and Peppol BIS formats.

What is the difference between XRechnung and ZUGFeRD?

XRechnung is a pure XML format (structured data only), while ZUGFeRD is a hybrid format that combines a PDF document with embedded XML data. XRechnung is required for B2G invoicing to German authorities, while ZUGFeRD is more common in B2B scenarios where a human-readable PDF is also needed. Both formats are based on the EN 16931 standard.

Can MDP Group help with Peppol e-invoice implementation?

Yes. MDP Group provides end-to-end Peppol e-invoice solutions for SAP users. Our solution covers Peppol access point registration, document exchange, validation and archiving — fully integrated with SAP ERP. We also support XRechnung generation and validation. Contact our team to discuss your e-invoicing requirements.

References

XRechnung Official Website (KoSIT)
Peppol — Official Website
MDP Group E-Invoicing Solutions