E-invoicing mandate 2026Germany's e-invoicing mandate for trades — what to do now
Since 1 January 2025, every German business must be able to receive structured e-invoices — including your trades business. Sending tightens in stages: PDF in B2B is still broadly allowed until end of 2026; from 2027 it's no longer permitted for businesses above €800,000 in prior-year revenue, and from 2028 not for any B2B business. This page explains in plain English: what applies, when, what to do — and how custom software turns the obligation into an advantage.
Receiving mandatory since 1.1.2025 — sending mandatory by 1.1.2028 at the latest.
What does the e-invoicing mandate mean for your business?
With the Wachstumschancengesetz, the German legislator decided in 2024 to phase in mandatory e-invoicing for B2B. An e-invoice is not simply a PDF — it is an invoice in a structured electronic format that machines can read. The two recognised formats in Germany are XRechnung (pure XML, common in the public sector) and ZUGFeRD from version 2.0.1 (a hybrid: a normal PDF with embedded XML data).
For you as a trades business this means: if you invoice business customers — other companies, property managers, municipal clients — you are affected. Pure B2C invoices to private customers can still be sent on paper or as PDF for now. In practice, almost every trades business is affected, because most have mixed B2B/B2C customers.
Important: the obligation phases in. You must already be able to receive e-invoices today — regardless of how small your business is. For sending, there are transition periods staggered by revenue. Anyone with a good tax advisor will know about this. Without one, start preparing in 2026 at the latest.
Exceptions exist: small invoices below €250 gross, transport tickets, and invoices to end consumers do not fall under the mandate. Businesses providing only VAT-exempt services without input tax are also exempt — relevant for very few trades.
This page does not replace a tax advisor. It helps you orient yourself and pick a software direction that holds up over the next few years.
TimelineHow the e-invoicing mandate phases in
Four phases — from today to early 2028. Start early and 2027 will not be hectic.
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Today — receiving must work
Since 1.1.2025 the receiving obligation is in force. You need a way to open, check, and archive incoming XRechnung and ZUGFeRD files — GoBD-compliant for 10 years. Modern accounting software or a custom business software handles this.
You are receive-ready today — no input tax risk on incoming e-invoices.
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2026 — prepare to send
Last year in which you can still send PDF invoices without time pressure. Ideal moment to switch to software that produces XRechnung or ZUGFeRD directly from the order — without manual rework.
A calm changeover instead of a last-minute fix — and free choice of software vendor.
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1.1.2027 — mandatory for larger businesses
Trades businesses with more than €800,000 prior-year revenue must send e-invoices. Smaller businesses growing past the threshold get caught here — preparation pays off either way.
General contractors and large commercial customers stay on board because you meet their requirements.
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1.1.2028 — mandatory for everyone
All B2B invoices must be electronic. Businesses without suitable software end up under time pressure and often grab expensive subscription tools because they need to move fast. Anyone who prepared in 2026 avoids this.
Full compliance without stress — your software has been running for years and is paid as a fixed price.
Who is affectedWhich trades businesses need to act now?
The mandate affects practically every trades business that invoices commercial customers. Here are the five most common cases from our consulting work.
SHK, electrical — commercial contracts
Maintenance contracts with property managers, industrial clients, municipalities — all B2B. These contracts often make up the largest share of revenue, so the sending obligation hits early and hard. Complex order line items are produced cleanly as XRechnung in custom software.
Painters, joiners, roofers with mixed clientele
Half private, half commercial — typical for many trades businesses. Software must do both: PDF for the private customer, XRechnung for the property manager — automatically based on customer type, no double work at the desk.
Subcontractors for general contractors
If you work as a subcontractor for GCs or large developers, the mandate is often imposed top-down — the GC requires XRechnung. Switching on time secures your order book.
Businesses with public-sector contracts
Federal, state, and municipal clients — the public sector has required XRechnung since 2020. If you invoice there, you must already be compliant. Custom software makes the process faster and traceable.
Businesses near the €800,000 revenue threshold
If you are close to the €800,000 threshold or growing into it, you will be caught by the 2027 sending obligation. A year of lead time for the switch to structured invoicing is solid planning.
Pure B2C businesses — relaxed for now
Only private customers? Then for now only the receiving obligation applies — and only if you receive incoming invoices from suppliers or subcontractors. Sending stays as PDF or paper.
Paths to complianceThree paths to e-invoicing — and what they really cost over 5 years
If you are switching to e-invoicing today, you essentially have three options — from manual workarounds via subscription software to custom software. Here is the honest assessment.
| Krafteq — custom software | Subscription software (plancraft, ToolTime, HERO) | Excel + manual conversion | |
|---|---|---|---|
| XRechnung sending | Directly from the order, automatic | Premium tier, depending on vendor | Only via separate online converters, manual |
| ZUGFeRD sending | Directly from the order, automatic | Usually included from standard tier | Only via separate online converters, manual |
| Receiving + GoBD-compliant archiving | Incoming e-invoices stored in your software, searchable, 10 years | Often add-on, often billed per document | Manual filing, risk during tax audits |
| Adaptation to your workflows | 100 % bespoke | Limited configuration | Fully manual |
| 5-year total cost (business under 10 employees) | €2,000–3,000 | €9,000–18,000 | Low software cost, high time cost |
| Code and data ownership | Yes — in your repository from sprint 1 | No — vendor lock-in | Data with you, workflows manual |
| E-invoicing as a trigger for a broader update | Yes — orders, materials, time, invoicing in one software | Only the invoicing module, other areas separately licensed | No — remains a point tool |
FAQFrequent questions about e-invoicing in the trades
Want to calculate the 5-year cost concretely?
On the pricing page you will find our total-cost calculator — it compares Krafteq's fixed price against typical subscription software over 5 years. Enter your headcount and see your savings instantly.
Open the cost calculatorReady to turn the e-invoicing mandate into an advantage?
Describe your business and customer mix in the form — within 24 hours you hear from us. 5 business days later you have a working prototype with XRechnung sending, ZUGFeRD receiving, and GoBD-compliant archiving. Free, non-binding, no sales pressure.
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