Starting in 2025, all businesses in Germany must adopt e-Invoicing. To support this transition, on 28 November 2024 we hosted a webinar with our client TMD Friction.
Attendees of the event received:
- Key updates on the 2025 e-invoicing mandate.
- Tips for project planning, IT setup, and best practices.
- Practical insights from TMD’s e-invoicing journey.
Below you find a summary of the webinar. Here you can watch the recording and download the webinar slides (both in German).
E-Invoicing Update: It starts but doesn’t end in 2025
Starting January 1, 2025, e-invoicing becomes optional for senders but mandatory for recipients in Germany. Accepted formats include EN16931-compliant standards such as CII, UBL, XRechnung, and ZUGFeRD. By 2027, e-invoicing will be mandatory for businesses with annual revenues exceeding €800,000. From 2028 onwards, all companies must issue electronic invoices. Additionally, the archiving period for invoices will be reduced to eight years.
At the European level, the ViDA initiative aims to make e-invoicing mandatory across all EU countries by 2030, paving the way for harmonized digital invoicing standards.
6 Steps to compliance
Many companies have already started implementing the e-invoicing reform. A survey conducted during our webinar revealed the following:
- 21% have not started yet,
- 53% are in the evaluation and planning phase,
- 17% are well advanced in implementation,
- 9% are nearly finished.
According to our e-invoicing expert Lisa Zvonetskaya, six critical steps are key to achieving compliance. She’s confident that “by following these steps, you will not only be well-prepared for the upcoming changes in Germany but also leverage the reform’s benefits to drive your business success.”
1. Appoint a dedicated project manager
Implementing e-invoicing requires clear structure and planning. A dedicated project manager ensures that regulatory changes, customer requirements, and deadlines are addressed on time. They coordinate internal and external stakeholders and assemble the necessary expertise from areas such as IT, ERP, accounting, and tax.
Given the complexity, which depends on systems in use and the level of digitization, early planning is crucial. The project manager ensures timely implementation and minimizes risks.
2. Get an overview of customers and suppliers
A clear overview is essential to define the scope of an e-invoicing project accurately and avoid surprises after the go-live. Early on, identify the invoicing formats and submission channels used, and ask when your partners plan to switch to the new format. Also, consider special requests and different types of invoices (domestic, EU, export, discounts, credit notes, collective invoices).
This analysis helps define the project scope precisely, address and digitize all relevant cost and customer scenarios, and minimize risks. Also, ensure that the required customer and supplier master data is complete and accessible within the company.
3. Decide on Make-or-Buy
Once the project scope of the e-invoicing implementation is roughly defined, you need to decide which parts you want to handle internally and where you need external support. Consider whether you only need software or if you also require market expertise and consulting from a service provider. Do you want a provider for each country, or a solution for all your international invoices? These questions will help you find the right provider who meets your requirements and make an informed decision.
4. Check the dataset for EN 16931 interoperability
Identify gaps that are not tax-compliant and must be urgently addressed, as well as those that can be deprioritized and implemented later. This analysis is not only relevant for Germany but also for intra-EU trade, and will be important in the future for countries such as Spain and France.
5. Bring your software up to date
Ensure that your IT infrastructure and software are up to date. If your provider offers updates, you should implement them, as service providers also need to adapt their software to new requirements. An update is often necessary to maintain full functionality and be prepared for the reform.
For our TecCom customers using SAP modules, this may mean upgrading to TecRM 3.1, while non-SAP customers may need to switch from Dispatch and Pull client to Connect 5. Make sure to address this with your provider in advance.
6. Leverage the reform as a competitive advantage
Implement e-invoicing proactively—don’t wait for everyone else to catch up. This will help you get your invoices paid faster, improve cash flow, and boost liquidity. It leads to greater financial flexibility and cost savings. With most documents available in structured electronic format, you’ll eliminate the need for printing, ink, and manual work through seamless processing.
Gain full transparency on the status of your invoices and offer your customers the added benefit of automating invoice processing without manual effort. They will appreciate this value.
Getting all stakeholders on board is critical to success
Our customer TMD Friction is a trailblazer in the field of e-invoicing, having started as early as 2009. In the webinar, Sarah Schwarz, TMD Business Process Development Manager, shared valuable insights from their e-invoicing implementation project. TMD has used the TecCom solution to roll out e-invoicing for Aftermarket customers worldwide.
The main driver was environmental concerns: reducing paper use and improving efficiency through digital processes. “Initially, convincing people was necessary, especially regarding regulatory recognition and reliability,” says Sarah Schwarz. Customers were mostly positive about the transition, and direct contact allowed TMD to address questions and resolve concerns.
A key factor in the success of the project was involving all relevant internal departments – from customer service to logistics teams. It is crucial to regularly inform all employees who come into contact with e-invoicing and to embed the project widely across the company. Additionally, choosing the right partner plays an important role in the success of the project.
Today, 98% of TMD invoices are sent electronically – securely, signed, and with transaction logs. This not only helps the environment but also boosts efficiency.
Summary: Converting a challenge into an opportunity
In essence, the webinar highlights three key takeaways on how to successfully manage an e-invoicing project.
- Allocate resources now: Seize the opportunity to allocate resources in a timely manner and lay the foundation for success.
- Turn Challenges into Opportunities: Transform necessary requirements into a competitive advantage for your business.
- Choose a Future-Proof Partner: Partner with a reliable and innovative provider for long-term, sustainable collaboration.
Ready to get started? We’re here to help you seize the opportunities of transitioning to e-invoicing and future-proof your business. A great starting point is a TecCom GAP analysis.
Contact us to find out more.
