Market Sector

B2B (Business-to-Business)

Definition

B2B refers to business relationships and invoicing between two companies. In Germany, the Growth Opportunities Act (2024) introduced a mandatory electronic invoicing obligation for domestic B2B transactions as well. From 2025, businesses must be capable of receiving e-invoices; the obligation to issue them will be phased in until 2028. ZUGFeRD and XRechnung are both permitted formats for B2B.

Background & context

B2B (Business-to-Business) refers to invoicing between companies. For a long time the paper or PDF invoice was customary here; with the Growth Opportunities Act (2024), however, the legislator introduced a phased obligation to issue structured e-invoices in domestic B2B. The timetable is staggered: from 1 January 2025, every domestic company must be able to receive e-invoices (receiving obligation) — regardless of its size. The obligation to issue follows later: from 2027 for companies with higher prior-year turnover, from 2028 for all others. During a transition phase, certain invoices may still be sent in other formats (e.g. PDF) provided the recipient agrees. Permitted e-invoice formats are all EN 16931-compliant formats, in particular XRechnung and ZUGFeRD/Factur-X from the EN 16931 profile. Exemptions apply, among others, to small-amount invoices (up to €250) and invoices to consumers (B2C).

In practice — a worked example

From 2025, a wholesaler supplies a commercial customer. It initially continues to issue PDF invoices (transition period), but must already now provide an email inbox or an inbound solution to receive incoming ZUGFeRD or XRechnung invoices and archive them in a GoBD-compliant way. Once its issuing obligation takes effect (2027 or 2028 depending on turnover), it upgrades its ERP to ZUGFeRD (EN 16931 profile) so that every outgoing invoice contains both a readable PDF and the structured XML data.

Common mistakes

  • •Underestimating the 2025 receiving obligation: even companies that may still send PDFs must be able to receive e-invoices.
  • •In pure B2B the Leitweg-ID is not required — it is a B2G specificity; there BT-10 serves more as an order/cost-centre reference.
  • •Small-amount invoices (up to €250) and B2C invoices are exempt from the B2B obligation — a blanket switch of all invoices is not necessary.

Frequently asked questions

From when is the B2B e-invoice mandatory?

The receiving obligation applies from 1 January 2025 for all domestic companies. The issuing obligation applies in stages: from 2027 for higher-turnover companies, from 2028 for all others.

Which formats are allowed in B2B?

All EN 16931-compliant structured formats, in particular XRechnung and ZUGFeRD/Factur-X from the EN 16931 profile. A plain PDF no longer meets the requirement.

Does the obligation also apply to small businesses?

Small businesses under § 19 UStG must also be able to receive e-invoices. The same staggered deadlines apply to issuing; small-amount invoices up to €250 are exempt.

Switch to German:B2B (Business-to-Business) (DE)

Related terms

ZUGFeRDZUGFeRD (Zentraler User Guide des Forums elektronische Rechnung Deutschland) is a hybrid invoice format that combines a human-readable PDF/A-3 file with embedded machine-readable XML data. The format is maintained by the Forum elektronische Rechnung Deutschland (FeRD) and exists in several profiles (MINIMUM, BASIC, EN 16931, EXTENDED). It is technically identical to the European Factur-X standard.XRechnungXRechnung is the German standard for structured electronic invoices in public sector procurement (B2G). It is based on the European standard EN 16931 and is available in two syntaxes: UBL 2.1 and UN/CEFACT CII. Since 27 November 2020, federal public buyers have been required to accept electronic invoices in XRechnung format, and state and municipal authorities have been progressively included.Growth Opportunities ActThe Growth Opportunities Act (officially: Gesetz zur Stärkung von Wachstumschancen, Investitionen und Innovation sowie Steuervereinfachung und Steuerfairness) was passed in March 2024 and regulates, among other things, the phased introduction of mandatory electronic invoicing in the B2B sector in Germany. From 2025, all domestic B2B invoices must be issued in a structured format and businesses must be capable of receiving them; transitional exemptions apply on a staggered basis until 2028.E-InvoiceAn e-invoice in the strict sense is an invoice that is issued and received in a structured, machine-readable format and enables automatic electronic processing. In the German context, particularly following the Growth Opportunities Act, e-invoice explicitly refers to structured formats (XRechnung, ZUGFeRD/Factur-X, Peppol BIS), while pure PDF invoices no longer qualify. Hybrid formats such as ZUGFeRD count as e-invoices because they contain the XML structured data.B2G (Business-to-Government)B2G refers to business relationships and invoicing from companies to government entities (federal, state, municipal, and public bodies). In Germany, electronic invoicing in the B2G sector has been progressively mandatory for federal authorities since 2020 and increasingly for state and municipal authorities. The required format is XRechnung or another EN 16931-compliant format.
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