E-Invoice for Small Businesses: What Applies in 2025?

Updated: 2026-06-25

For small businesses under § 19 UStG, an important distinction applies: they must be able to receive e-invoices, but they don’t have to issue any.

Receiving: mandatory since 2025

Since 1 January 2025, every domestic business must be able to accept and process e-invoices — with no exception for small businesses. In practice, this means: a business partner may send you an XRechnung or ZUGFeRD invoice, and you must be able to accept it.

The good news: an email inbox is enough for this. You don’t need expensive software. To read them, you can open the e-invoice in your browser and check its validity.

Sending: permanently exempt

When it comes to issuing, small businesses are exempt. The 2024 Annual Tax Act (Jahressteuergesetz) introduced § 34a UStDV for this purpose: a small business’s invoice may always be transmitted as an “other invoice” — that is, on paper or as a PDF. This exemption is permanent and has no expiry date.

You may, of course, voluntarily issue e-invoices — many business customers prefer this, because it simplifies their accounting.

Watch out: the small business thresholds

The 2024 Annual Tax Act revised § 19 UStG. Since 2025, the rule is: the small business scheme applies if turnover did not exceed €25,000 in the prior year and does not exceed €100,000 in the current year. If you exceed the threshold, you become a regular business — and are then fully covered by the e-invoice mandate.

Recommendation for getting started

1. Make sure incoming XML and ZUGFeRD invoices reach you and are readable.
2. Store your e-invoices in an audit-proof way (see Archiving).
3. If you want to write e-invoices voluntarily, you can create an e-invoice for free — directly in your browser.