E-Invoice Software in Germany: 6 Must-Have Functions

E-invoice software must do six things. It creates XRechnung and ZUGFeRD, reads incoming e-invoices, keeps the file unaltered for eight years, lets you enter a Leitweg-ID, makes invoices checkable and fits your bookkeeping. A PDF editor is not enough, because a plain PDF is not an e-invoice.

Last updated: 29 October 2026

In short

Duty: You must be able to receive e-invoices since 1 January 2025; you must issue them to German businesses after the transition period.
Formats: XRechnung or ZUGFeRD from version 2.0.1, excluding the profiles MINIMUM and BASIC-WL.
Choice: Test the software against the checklist below, not on price alone.

Why is an ordinary invoicing program not enough?

An e-invoice is an invoice in a structured electronic format that allows electronic processing (§ 14 Abs. 1 Satz 3 UStG). According to the BMF, XRechnung and ZUGFeRD from version 2.0.1 (without MINIMUM and BASIC-WL) meet the requirements; a plain PDF does not. The duty to issue applies to services to other businesses in Germany, staged by the transition rule in § 27 Abs. 38 UStG: for supplies made in 2027 with at most 800,000 euros turnover in the previous year, paper or, with the recipient's consent, PDF is still possible until 31 December 2027. When you are affected is explained in e-invoice obligation 2027.

What this means for you: Whatever you use for PDF invoices today must reliably output XRechnung or ZUGFeRD by 2028, and already in 2027 for business clients when your previous-year turnover is high.

Which six points belong on the checklist?

No.	Function	Why
1	Creates XRechnung and ZUGFeRD	both formats are permitted (BMF FAQ)
2	Reads incoming e-invoices	you must be able to receive since 1 January 2025
3	Keeps the file unaltered	retention is eight years (§ 14b Abs. 1 UStG)
4	Has a field for the buyer reference	for public authorities this is the Leitweg-ID
5	Shows the data and can be checked	checking the invoice stays your job (Rn. 35a, BMF letter); see validate an e-invoice
6	Fits your tax routine	outgoing and incoming invoices feed the VAT return and the EÜR

What this means for you: Run the list with one test invoice and one incoming invoice before you commit.

What applies to small businesses and small amounts?

As a small business (Kleinunternehmer) you do not have to issue an e-invoice (§ 34a UStDV) but you must be able to receive one; invoices for small amounts up to 250 euros are exempt from the e-invoice duty (§ 33 UStDV). Details are in e-invoicing for small businesses and e-invoicing for freelancers.

What this means for you: Even without a duty to issue, you need a tool to receive and read.

How VAT GPT helps

Fill in: On the Income page, open "Create invoice" in the "Tips" card and pick ZUGFeRD (PDF) or XRechnung (XML) under "Format"; for public authorities enter the real Leitweg-ID in the field "Buyer reference (Leitweg-ID)".
Check: Review the details on the invoice.
Send: Download the file. Upload incoming ZUGFeRD PDFs and XRechnungen under "Expenses"; VAT GPT reads the details on upload.

Because VAT GPT also processes the Amazon and eBay reports for the OSS return and the VAT return, invoices, income and expenses sit in one place. VAT GPT is not a viewer or a validator. There are Free, Go (30 days free with all Pro features) and Pro. Try it for free

Frequently asked questions

What software do I need for e-invoicing? One that produces XRechnung or ZUGFeRD from version 2.0.1 and can read incoming e-invoices; a plain PDF is not enough (BMF FAQ).

Can I create e-invoices with Excel or Word? A file from Excel or Word is a PDF or a document without structured data and therefore not an e-invoice. You need a program that produces the structured format.

Do I have to issue e-invoices from 2027? For services to German businesses with more than 800,000 euros turnover in the previous year, yes; otherwise the transition period runs until 31 December 2027 (§ 27 Abs. 38 UStG).

How long must I keep e-invoices? Eight years (§ 14b Abs. 1 UStG).