XRechnung: Germany's E-Invoicing Standard Explained

XRechnung is Germany's national e-invoicing standard — the format required for invoicing German federal government bodies and, progressively, for B2B transactions as Germany implements its e-invoicing mandate. If you have German public sector customers, XRechnung is already mandatory. If you have German business customers, the B2B obligation is phasing in now. This guide covers what XRechnung is, how it differs from ZUGFeRD, and what you need to do as a supplier.

What Is XRechnung?

XRechnung is Germany's national core invoice usage specification (CIUS), built on the European e-invoicing standard CEN EN16931. It was developed by KoSIT (Coordination Office for IT Standards in Germany) on behalf of the IT Planning Council. XRechnung is purely machine-readable XML — there is no human-readable component. It comes in two technical flavours:

• UBL 2.1 (Universal Business Language) — more common internationally, supported by all major Peppol-connected systems
• CII (UN/CEFACT Cross Industry Invoice) — also valid for XRechnung, used more often in the ZUGFeRD hybrid context

Both flavours are EN16931 compliant. The German-specific extensions added in XRechnung are primarily the Leitweg-ID (buyer reference for public sector routing) and German-specific payment and tax handling requirements.

Current Mandate Scope

B2G: Already Mandatory

XRechnung has been mandatory for invoicing the German federal government since November 2020. State (Bundesland) level adoption varies:

• Most states have followed with their own mandates since 2020–2022
• Municipalities are at varying stages — some require XRechnung, others still accept PDF

If you are invoicing any German federal authority, XRechnung via Peppol or the OZG-RE portal is mandatory. Check state-level requirements with the specific contracting authority.

B2B: Germany's 2024 Law and the Phased Rollout

Germany passed its B2B e-invoicing law in 2024, establishing one of the most significant mandate timelines in Europe:

The January 2025 receiving obligation is already live: if you are issuing invoices to German businesses, they are already legally required to be able to receive structured e-invoices. Your customers who have not yet set up structured invoice receiving are technically non-compliant.

XRechnung vs ZUGFeRD: What's the Difference?

Both XRechnung and ZUGFeRD are EN16931-compliant and valid for German B2G and B2B invoicing, but they serve different use cases.

For fully automated invoice processing — where invoices go directly into an ERP or government system — pure XRechnung XML is preferable. ZUGFeRD's hybrid approach suits businesses that still need a human-readable document alongside the machine-processable data. For Peppol-based submission, XRechnung UBL 2.1 is the standard format.

Key Technical Fields

Leitweg-ID (Buyer Reference — B2G)

The Leitweg-ID is a routing identifier unique to German public sector e-invoicing. It tells the Peppol network or OZG-RE portal which specific authority, department, or cost centre should receive the invoice. For B2G invoices, the Leitweg-ID is mandatory — without it, the invoice cannot be routed to the correct recipient.

Your customer (the public body) provides the Leitweg-ID; you include it in the buyer reference field of the XRechnung. Each contracting authority will specify their Leitweg-ID in procurement documents and framework agreements.

Payment Means Code

German public sector invoices typically use SEPA credit transfer. The payment means code for this is 58. Include the IBAN, BIC, and payment reference fields.

VAT Breakdown

XRechnung requires a complete VAT breakdown per tax rate. If an invoice has line items at both 7% (reduced rate) and 19% (standard rate), there must be two separate tax subtotals. The VAT category code follows EN16931 conventions: S for standard rate, AA for reduced rate, and others as applicable.

Routing XRechnung Invoices

B2G: Peppol Network or OZG-RE

German public sector B2G invoices can be submitted via:

• Peppol network: using the PINT DE profile (Peppol International DE) — you need a Peppol Access Point. The recipient's Peppol ID typically maps to their Leitweg-ID.
• OZG-RE (Online Services Government — Invoice Routing): Germany's central e-invoicing portal for federal authorities. Accepts direct upload or API submission.

For foreign suppliers invoicing German federal bodies, Peppol is typically the recommended path — your access point handles routing without requiring you to integrate directly with German government portals.

B2B: Peppol or Direct API

For German B2B e-invoicing under the 2024 mandate, the expected delivery mechanism is also Peppol — the PINT DE profile or BIS Billing 3.0 (which is also EN16931-compliant and accepted in Germany). Direct EDI connections between trading partners are also valid.

For Foreign Suppliers

If you supply goods or services to German public sector customers, XRechnung via Peppol is your path to compliance. The key steps:

1. Obtain a Peppol Access Point — either through your ERP or a specialist provider
2. Obtain the Leitweg-ID from your customer (included in the purchase order or framework contract)
3. Generate an XRechnung UBL 2.1 XML with the Leitweg-ID in the buyer reference field
4. Submit via Peppol — your access point handles routing to the German authority's Peppol endpoint

You do not need to register in Germany or access OZG-RE directly. The Peppol network abstracts the country-specific routing.

Related Reading

• What Is a Peppol Access Point? — choosing an access point for PINT DE and B2G routing
• Clearvo's 31-country PINT and BIS 3.0 expansion — full list of supported Peppol profiles
• Germany e-invoicing coverage — Clearvo's full XRechnung implementation details