from Ingo Röger
From January 1, 2025, an important legal change will come into force: electronic invoicing in the B2B sector will become mandatory. The corresponding act now transposes the previous EU directive into national law. The aim of this initiative is to further digitalize the accounting system and more efficiently curb VAT fraud.
Ten weeks before the start date, it is essential that online retailers prepare for the changeover in order to meet the legal requirements.
Affected business transactions: B2B in Germany
This regulation only applies to transactions between companies based in Germany (B2B). A company is deemed to be based in Germany if its registered office, management or a permanent establishment is located in Germany.
Accordingly, all companies that sell goods or services to other companies in Germany are obliged to issue invoices electronically.
The E-invoice: Definition and Background
An e-invoice is a document that is created and transmitted in a structured data format. Unlike conventional PDF files, e-invoices contain machine-readable information that enables automated processing. Examples of formats that fully meet the requirements are XRechnung or ZUGFeRD. This electronic form simplifies integration into digital systems, reduces errors and speeds up processing.
It is important to note that a paper invoice is not sufficient and an unstructured PDF will no longer be considered an electronic invoice from 2025.
Effects on E-Commerce
For many online retailers, the introduction of e-invoicing means adapting their existing processes. Accounting and invoicing software must be able to support the required format and transmit invoices correctly. This may require the implementation of new software or the adaptation of existing systems. Companies that do not act in time risk penalties or delays in the payment of their invoices.
However, the introduction of e-invoicing also brings advantages: automated processes can significantly reduce the workload in accounting and lead to faster processing of payments. In addition, the risk of incorrect invoices is reduced, which relieves the burden on both merchants and their business partners. At the same time, digital processing offers greater transparency and control over financial processes.
The Next steps for Online Retailers
-
Check systems: Merchants should check whether their current accounting and ERP systems meet the requirements of e-invoicing.
-
Upgrade or acquire software solutions: If necessary, companies should update their systems early on or implement a new software solution.
-
Employee training: It is important that teams are familiar with the new processes and legal requirements and are enabled to create and process e-invoices correctly.
-
Connection to business partners: Online merchants should ensure that their system can communicate flawlessly with connected platforms and third-party software to ensure smooth data exchange.
The Solution: DocumentBuilder by plentysystems
Within its e-commerce ERP, plentysystems has launched the new DocumentBuilder, an innovative solution enabling online retailers to easily meet legal requirements. The feature for setting up documents offers a user-friendly interface including a drag-and-drop editor and enables e-invoices to be created automatically and in the correct format. The solution is fully integrated into existing plentysystems processes and ensures compliance with the new requirements.
Switching to e-invoices may be a challenge, but with the right tools and early preparation, online retailers can not only meet the legal requirements, but also benefit from the efficiency gains of digitization.