E-invoicing for small businesses: what applies?

You must be able to receive

Since 1 January 2025 all businesses must be able to receive e-invoices, small businesses too. A mailbox that accepts XML files and ZUGFeRD PDFs is enough as a first step. You should check and retain a received e-invoice.

Issuing is generally voluntary

Small businesses are generally exempt from the obligation to issue e-invoices. You may continue to issue invoices as a simple PDF or on paper. If in doubt whether your case falls under the rule, clarify it with your tax adviser.

Why you might do it anyway

It can make sense to write e-invoices voluntarily:

• Larger customers occasionally ask for them.
• You are prepared for orders from businesses and authorities.
• You grow out of the small-business scheme: then the obligation applies to you from the respective date too.

What the invoice must state

As a small business you show no VAT and include the note that you apply the small-business scheme under section 19 of the VAT Act. In an e-invoice this is expressed through the matching tax category and an exemption reason. A creation tool guides you.

• Create e-invoice (XRechnung)
• Validate e-invoice

Practical steps

Create the invoice with your details, validate it and send it by e-mail. A daily free allowance is often enough for a small business.

Frequently asked questions

Do I have to switch immediately as a small business?

No, issuing is generally voluntary. You must be able to receive, though.

Do I stay exempt forever?

Only as long as you use the small-business scheme. If you exceed the limits, the general rules apply.

Do small amounts count?

There are separate reliefs for small-amount invoices up to 250 euros.

More guides

• E-invoicing for freelancers and the self-employed
• Tax categories in the e-invoice
• E-invoice obligation: deadlines and checklist

These guides do not replace tax or legal advice. For questions about your own case please ask your tax adviser.