The XRechnung is a standardized, XML-based invoice format based on the European Core Invoice Model EN 16931, developed specifically for electronic invoicing to public authorities in Germany. It ensures the machine-readable transmission of all legally relevant invoice data and meets the requirements of German tax law (Section 14 UStG) as well as the specifications for processing electronic invoices in the public sector.
Legal basis and scope
The introduction of the XRechnung follows the EU directive on electronic invoicing in public procurement. In Germany, electronic invoicing to public contracting authorities is legally established; for invoices to federal authorities, the XRechnung has been mandatory since the end of 2020. Many federal states and municipalities also accept or require the XRechnung.
Important legal references for freelancers and small businesses are:
- Section 14 UStG – requirements for invoice details, authenticity and integrity of the invoice;
- EN 16931 – the European semantic core model on which the XRechnung is based;
- AO and GoBD – retention periods (usually 10 years) and proper retention of electronic data.
Technical characteristics and differences from other formats
The XRechnung is a pure XML format that contains structured and unambiguously defined fields for invoice recipient, invoice issuer, line items, tax rates and totals. Unlike hybrid formats such as ZUGFeRD/Factur‑X, which combine a PDF presentation with embedded XML data, the XRechnung is fully machine-readable and optimized for automated processing.
Typical transmission channels are:
- Direct delivery to the Central Invoice Receipt Platform of the Federal Government (ZRE) or comparable platforms at state and municipal level;
- PEPPOL network or other EDI/AS2 procedures, provided those interfaces support the XRechnung.
Practical application in accounting
For day-to-day accounting, the XRechnung offers several advantages: less manual data entry, lower error rates and faster approval processes. To use the XRechnung efficiently, observe the following steps:
Validation and verification
- Automatic schema validation of the incoming XML file (mandatory fields, data types).
- Match the supplier’s VAT ID and check whether the invoice contains all legally required information according to Section 14 UStG.
- Check the invoice number and date against already posted invoices (duplicate check).
Posting and input VAT deduction
- On receipt of an XRechnung, net amount, tax amount and gross amount can be posted automatically to the corresponding accounts.
- Example posting: Invoice for €1,190.00 (Net €1,000.00, 19% VAT €190.00):
- Expense / Accounts Payable: €1,000.00
- Input VAT: €190.00
- Liabilities (Accounts Payable/Bank): €1,190.00
- Ensure that the invoice data are stored in a tamper-proof manner (GoBD-compliant archiving).
Benefits, challenges and practical tips
The XRechnung speeds up processes, reduces input errors and simplifies archiving. At the same time, there are practical challenges, especially for small businesses:
- Benefits: automation capability, improved traceability, faster payment approvals with public contracting authorities.
- Challenges: technical integration with ERP/accounting software, necessary updates for XRechnung validation, occasional missing mandatory data on supplier invoices.
Practical tips:
- Use accounting software or add‑ons that support XRechnung import and automatic field mapping.
- Set up validation rules (VAT ID, invoice number series, amount logic) to detect faulty documents early.
- Document the receipt and verification process in a tamper-proof way to meet GoBD requirements and retention obligations (Section 147 AO).
Conclusion: For freelancers and small businesses, the XRechnung initially requires process adjustments, but in the long run it significantly reduces manual effort and increases legal certainty in creating and processing invoices for public contracting authorities. Ensure appropriate software support and a clear verification procedure, and you will benefit from faster workflows and fewer errors.