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      What is the E-Invoice?

      Germany is taking a significant step towards digitalization with the introduction of the e-invoice. This move is set to revolutionize how businesses handle their invoicing processes, bringing a wave of efficiency and cost savings.

      Simply put, an e-invoice is a digital version of a paper invoice. It's issued, transmitted, and received in a structured electronic format, allowing for automated processing and eliminating the need for manual data entry. In Germany, the e-invoice will be based on the European standard EN 16931, ensuring compatibility across the EU.

       

      The Rollout Plan
      The introduction of the e-invoice in Germany is happening in stages:

      • Federal Government: From November 27, 2020, federal authorities are required to receive and process e-invoices.
      • B2G (Business-to-Government): Suppliers to federal authorities must be able to issue e-invoices. This is gradually being extended to state and local authorities.
      • B2B (Business-to-Business): While not yet mandatory, the use of e-invoices between businesses is strongly encouraged and expected to become more prevalent in the coming years.

      Benefits for Businesses
      The transition to e-invoicing offers numerous advantages for German businesses:

      • Reduced Costs: Say goodbye to paper, printing, postage, and manual processing. E-invoicing significantly reduces administrative costs.
      • Increased Efficiency: Automated processing streamlines workflows, freeing up valuable time and resources.
      • Improved Accuracy: Minimize human error and enjoy greater accuracy in invoice processing.
      • Faster Payments: E-invoices can be processed and paid more quickly, improving cash flow.
      • Enhanced Security: Digital signatures and encryption ensure the authenticity and integrity of e-invoices.
      • Environmental Friendliness: Reduce paper consumption and contribute to a greener future.

      Looking Ahead
      The introduction of the e-invoice marks a significant milestone in Germany's digital transformation. While the initial focus is on the public sector, the benefits are clear for businesses of all sizes. By embracing e-invoicing, German companies can position themselves for greater efficiency, cost savings, and competitiveness in the digital age.