- Switching to e-invoicing in compliance with the law: How to meet transition deadlines, reduce PDFs, and avoid tax risks
- How is the e-bill sent? Three common methods
- Changes to your outgoing invoices in BC: What exactly is changing?
- Invoice documents for B2C customers in Germany and abroad—and B2B customers in Europe and third countries—simplifications through e-invoicing
- Your next steps (concise in concept, pragmatic in execution)
- Looking Ahead: E-Delivery Notes, ViDA, and the Electronic Document Chain
- Our conclusion
E-Invoicing in Business Central – Why You Should Revamp Your Invoicing Processes Now and Seize the Opportunity
The use of electronic invoices will become mandatory on January 1, 2027. Are you currently wondering how your company should comply with the upcoming legal requirements for e-invoicing? Even though you haven’t had to deal with this issue much until now and are now urgently seeking guidance, clarity, and support?
Many CFOs, IT managers, and CEOs find themselves in exactly this situation: E-invoicing is gradually becoming mandatory, requirements are increasing, and at the same time, the pressure is growing to digitize processes, automate them securely, and ensure they comply with legal requirements.
At the same time, the new invoice format opens up new opportunities: fewer manual tasks, fewer errors, more consistent data, and a foundation for future EU reporting processes.
We help you meet your accounting obligations and take advantage of the opportunities that arise.
In this article, we provide a clear overview of e-invoicing, which will become mandatory for you starting in 2027. We explain the implications for accounting and IT, outline the specific effects on Business Central, and show you how to best prepare for the transition now.
Switching to e-invoicing in compliance with the law: How to meet transition deadlines, reduce PDFs, and avoid tax risks
At the heart of the reform is the e-invoice in the EN 16931 format. Traditional PDFs—including those sent via email—do not qualify as e-invoices. As of January 1, 2025, companies must be able to receive and process e-invoices; this makes the e-invoice the standard form of invoicing, while PDFs may now only be used as reference copies.
Important: A PDF attached to an e-invoice must no longer be titled “Invoice” and must not contain the same mandatory tax-related information as the e-invoice. Otherwise, there is a risk of misinterpretation for tax purposes.
If you send an e-invoice and also provide an identical PDF with the same mandatory information, you run the risk of this being treated as a second invoice. This could result in a potential double VAT liability.
PDFs may therefore only be used for viewing purposes, not as a second invoice document.
Germany is gradually introducing e-invoicing in the B2B sector:
- Effective January 1, 2025: All businesses must be able to receive e-invoices (the recipient’s consent is no longer required).
- Until December 31, 2026: Sending paper receipts will remain possible on a transitional basis. Use this time to ensure a smooth transition.
- Effective January 1, 2027: Companies with prior-year revenue exceeding €800,000 must send e-invoices. This effectively applies to all companies that use Business Central.
- Effective January 1, 2028: Shipping requirement for all businesses.
- Exceptions (including small-amount invoices up to €250, transportation tickets, and certain tax-exempt services) remain in place, but they do not alter the principle that e-invoicing is the standard in B2B transactions.
How is the e-bill sent? Three common methods
E-invoices are structured data sets (e.g., XRechnung, ZUGFeRD profile). There are several methods available for transmission:
You can send an email with a structured attachment. The e-invoice is sent as XML (e.g., XRechnung) or as a ZUGFeRD hybrid. This is simple and widely used; the key point is that the structured XML component is transmitted unchanged.
Or you can use the PEPPOL network. This is a secure, Europe-wide exchange channel with high interoperability that many ERP systems support via add-ons. In public procurement, PEPPOL is the de facto standard. (The requirement remains: EN 16931-compliant content.)
Alternatively, you may also use EDI in the correct format. EDI remains acceptable provided that the content relevant to EN 16931 is included or can be correctly extracted.
Changes to your outgoing invoices in BC: What exactly is changing?
Business Central already supports e-invoicing out of the box or through extensions. This ranges from exporting structured formats to integrating transmission channels (e.g., PEPPOL integration).
The key is how you prepare your data and document logic in BC: Only if master data, control keys, number ranges, and workflows are properly maintained can end-to-end processing be successful without manual intervention.
An e-invoice is not a layout document, but a data model. This has implications for the structure of your outgoing invoices:
- Additional text:
Free-form text is not displayed “as usual” in the e-invoice format. It appears in a different location, is assigned differently, or is not transferred at all. Determine which information is mandatory and maintain it in a structured manner in master data/item fields. (Practical tip from the transition: First, perform test runs with real documents and evaluate the result files from a business perspective.) - Line items & unit prices:
Each service/item must be listed individually with its price and quantity. Price suppression or consolidation into a single line item is not permitted.
This level of detail is part of the EN logic and is intended for automated processing. - G/L accounts as line items:
G/L account entries are also interpreted as invoice lines. This means they are effectively treated “like items.” Ensure that each line has a complete description and the correct tax attributes. - Logos & Layouts:
Corporate design elements are not part of the e-invoice format.
Logos or special layouts are not transferred.
Consider whether further investment in PDF layouts is worthwhile or whether you would prefer to switch entirely to e-invoicing in the future.
This raises the question: Should you continue using PDFs, or switch directly to "e-billing"?
Since the e-invoice is the only legally valid version, many companies are opting to maintain PDF layouts for B2B use only to a minimal extent. This reduces media discontinuities and saves resources.
Invoice documents for B2C customers in Germany and abroad—and B2B customers in Europe and third countries—simplifications through e-invoicing
The introduction of e-invoicing not only affects the mandatory B2B sector but will also, in the long term, change the way companies generate invoices for B2C customers and international business partners. Because e-invoicing requires a highly structured data model, it automatically creates a clear, consistent, and technical “single source of truth” for all outgoing documents. This allows traditional PDF layouts to be significantly streamlined or even completely reimagined.
The welcome result: Once e-billing is established as the primary data source, the effort required for all other types of invoices is reduced—even in cases where e-billing is not mandatory.
Simplification for B2C and non-e-invoice recipients
B2C customers, many European small businesses, and all business partners in third countries are currently not subject to the e-invoicing requirement. Nevertheless, companies benefit indirectly from structured data management for various reasons:
If the e-invoicing model serves as the central starting point, traditional PDFs can be reduced to a necessary minimum. And all without additional logic or duplicate data entry. Since prices, line items, tax codes, and texts are already consistently available within a unified data logic, PDFs or alternative output formats do not need to be maintained separately. A cleanly structured data model also reduces the risk of format discrepancies, rounding differences, or manual additions, for example when dealing with international customers. At the same time, it facilitates multilingual support: Once structured and maintained, master data can be automatically translated for B2C and third-country invoices or specifically controlled via layout rules.
Economic Outlook: Carefully Weigh the Benefits of Report Customization
We recommend first carefully assessing the cost-benefit ratio.
After all, the higher the proportion of business partners who fall under the mandatory e-invoice recipient category, the more critically one should evaluate the effort involved in layout optimizations.
After all, the higher the proportion of business partners who fall under the mandatory e-invoice recipient group, the more critically one should evaluate the effort involved in layout optimization.
Small and medium-sized businesses in particular are already reporting that the switch to e-invoicing has reduced the effort required to maintain traditional PDFs so significantly that creating additional layout variations is often no longer worthwhile.
Medium- and long-term benefit in Business Central: Less effort with every update
In practical terms, a streamlined layout portfolio means that the effort required for regression testing is significantly reduced during release changes, as fewer customizations need to be accounted for and tested. At the same time, your reliance on external customization service providers decreases because there is less need for individual interventions and custom solutions. The risk that layout customizations will no longer function correctly after an update or will need to be corrected later is also significantly reduced. Overall, this leads to lower update costs, as fewer reports need to be migrated, reviewed, or technically updated.
As standardization based on the e-invoicing model continues to advance, the effort required to keep Business Central up to date and compliant decreases.
Your next steps (concise in concept, pragmatic in execution)
Even though every business is different, the following order has proven effective:
Step 1: Start by organizing your master data.
Step 2: Next, refine your item logic. Do not create any summary items during this process.
Step 3: Activate or configure your selected e-invoice formats in BC. For example, you can use the XRechnung or ZUGFeRD format.
Step 4: Next, set up PEPPOL or email routing
Step 5: Now check whether your archiving is GoBD-compliant
Step 6: Before moving on to the final phase, we recommend that you first run test cycles using real documents. This will allow you to verify that all your configurations have been implemented correctly and that the e-invoices are being generated correctly.
Step 7: Once you have prepared and tested everything, you should train your teams and can finally go live. The deadlines and priority of e-invoicing are clearly defined by law.
Looking Ahead: E-Delivery Notes, ViDA, and the Electronic Document Chain
E-invoicing is just the beginning. With ViDA—VAT in the Digital Age—the EU is driving forward the digitization of value-added tax: Starting July 1, 2030, e-invoicing will become mandatory for intra-Community B2B transactions. At the same time, digital reporting requirements (DRR) will be introduced, providing for near real-time reporting within the EU. This EU development complements national requirements in Germany and ensures a harmonized data base across Europe.
In addition, the electronic delivery note is being discussed as a structured delivery document. The goal is a fully electronic chain of documents—from delivery to invoicing to reporting to the tax authorities. Specific implementation dates have not yet been set, but the direction is clear: electronic, structured, and interoperable.
As soon as there are further changes regarding electronic delivery notes, we will keep you informed right here.
Our conclusion
E-invoicing is far more than just a new form of invoicing: it marks the starting point of a fully digital, structured, and audit-proof document chain in Germany and Europe. With ViDA, the mandatory e-invoicing standard for EU B2B transactions starting in 2030, and new digital reporting requirements, the field is evolving rapidly. Traditional PDF layouts are losing their legal status and, with it, their significance.
At the same time, e-billing offers significant opportunities: it significantly reduces manual work and thereby minimizes potential sources of error. Automated e-billing processing modernizes your processes and boosts efficiency within your company.
As you can see, the transition to e-invoicing isn’t something that can be resolved in just two weeks. It requires an organized and structured transition. Business Central already offers robust features for this—but implementation can only be reliable and compliant with the law if you have clean master data, clear processes, and customized document structures. We’re here to help. Together, we’ll ensure early on that you’re fully prepared for the upcoming e-invoicing requirement.
Take advantage of this transitional period!
We can help you set up your e-invoicing processes in Business Central in a legally compliant and future-proof manner.
Do you have any questions? You can find more information on our e-invoicing webpage.
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About the author
MARTIN BENZIN · Senior Functional Consultant
Over 28 years of professional experience in application development and project management in more than 30 countries.
My extensive experience in the BC and NAV environment has served as strong professional and technical support for several large and small medium-sized companies throughout my career. In the process, I have become familiar with many industries, such as mechanical engineering, special machine construction, the automotive industry, and power tool manufacturing. There, I supervised several projects involving the introduction and upgrade of ERP solutions.
These experiences have given me in-depth expertise in complex solution environments and large projects.
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