With the changeover to e-Invoicing, up to 80% can be saved compared to paper invoices by eliminating printing & postage costs. Not only the monetary aspect is an advantage here, but also the savings potential of resources, time and personnel must not be ignored.
Important questions on the e-Invoice law
What is “XRechnung”?
XRechnung is mostly used in exchange with authorities and local authorities, i.e. public administrations. The European Union’s requirement to introduce XRechnung as a standard is intended to create a basis for guaranteeing electronic data exchange in the public sector.
With Directive 2014/55/EU, Germany has started to introduce XRechnung as a standard norm and has committed itself to the EU norm. This standard is thus uniformly regulated for the federal government, the federal states and local authorities. The XRechnung is considered a future-proof standard, as it is available free of charge and through which clear & defined controls take place.
Are there alternatives to “XRechnung”?
Here the answer is: YES and NO!
In this case, the invoicing party can also use a different invoice format, the so-called ZUGFeRD 2.1 format. However, this only applies if the countries allow this in their invoices regulations and it is technically necessary. Invoices created with ZUGFeRD 2.1 must also comply with the EU standard. As a rule, ZUGFeRD 2.1 meets all standards that are also met by XRechnung. However, for public administrations, the XRechnung is mainly considered the standard format.
Does everyone have to be able to receive & send e-Invoices in the future?
The obligation to be able to receive and send e-Invoices currently only applies to the contracting authorities, such as municipalities and public authorities, of the so-called upper threshold area. However, as stipulated in the e-Invoicing law, all public administrations, including those in the sub-threshold area, must have switched over to sending and receiving electronic invoices by April 2020, or by November 2020 at the latest.
The obligation of the e-Invoicing law only ceases to apply if the order is a direct order (an order up to a value of €1000 and excluding VAT). Thus the e-Invoicing law applies from an order value of 1000€.
Do I need new software for the implementation?
No additional or new software is needed to convert to electronic data exchange for invoicing, only adaptations to the existing software will be necessary to generate, transfer and process the new invoice formats.
How do I migrate to eInvoicing?
Since no additional software is required for the conversion to e-invoicing, it is more likely that internal company adjustments will have to be made. First, an internal invoice receipt will be required and workflows for invoice management will have to be developed. In addition, an audit-proof archive is required.
Various service providers will support you in converting to electronic invoicing.
They will first check together with you:
- ACTUAL processes
- TARGET processes
INPOSIA can also support you in the conversion to e-Invoicing and is exactly the right partner for this.