E-invoicing Requirement 2026: How to Future-Proof Your Company

Since the beginning of 2025, it is official: the obligation to receive electronic invoices. For many companies, this was the starting signal to finally digitize their accounting processes.

And now, at the end of 2025, the next phase is approaching: From January 1, 2026, e-invoices must also be actively issued—at least for some companies.

What does this mean in practice and how can you best prepare your company? Here you will learn why e-invoicing is coming, what will change, and how Microsoft Dynamics 365 Business Central supports you.

 

Why e-invoicing is coming—simply explained

Invoices should become simpler, faster, and more secure. Paper and PDFs are error-prone and time-consuming. With e-invoicing, everything is digital: Data can be processed automatically, without manual typing. This saves effort, makes processes more transparent—and helps prevent tax fraud.

What has changed with e-invoicing

An e-invoice is not a PDF file. It consists of structured data, usually in the XRechnung or ZUGFeRD 2.1 format, which machines can read and process automatically.

Only systems that can create, receive, and interpret these formats meet the legal requirements. The classic PDF invoice will soon be a thing of the past.

Review 2025—Receiving is Mandatory

Since January 1, 2025, all companies in Germany must be able to receive and process e-invoices—for all B2B transactions within Germany.

PDFs are no longer considered electronic invoices under § 14 UStG, but may continue to be used temporarily with the recipient's consent (until the end of 2026 or 2027 for small businesses).

Many companies have gained their first experiences this year. The good news: Those who act now are well prepared for the next steps.

Looking Ahead—From 2026 You Must Take Action Yourself

From January 1, 2026, phase two begins: The obligation to issue e-invoices.

• Large companies start in 2026.
• Smaller businesses have transition periods until 2027.
• By 2028 at the latest, the obligation applies to everyone.

Those who continue to rely on analog processes risk extra work—and tax issues.

Opportunities and Challenges

E-invoicing brings many advantages:

• Faster processes: Automatic processing saves time.
• Fewer errors: No more incorrect amounts or typos.
• Better liquidity: Faster payments through optimized workflows.
• More transparency: Every invoice is digitally traceable.

But: The transition affects almost all departments such as accounting, IT, sales, purchasing, and requires clear processes.

Business Central as the Key to Implementation

Microsoft Dynamics 365 Business Central already offers many features for e-invoicing: creation, receipt, and processing of XRechnung and ZUGFeRD included.

But for many companies, the standard is not enough. As soon as automated delivery channels (e.g. PEPPOL), complex workflows, or archiving are added, additional tools are needed. And that’s where we come in 💚

At dc AG, we have developed a portfolio of extensions for Business Central that cover your entire e-invoicing process:

• Automated sending in various formats (e.g. XRechnung, ZUGFeRD)
• Digital capture & approval with approval workflows
• Audit-proof archiving of all invoices
• Electronic data exchange with tax advisors & authorities
• The result: A digital, legally compliant invoicing process—perfectly integrated into your ERP landscape.

Why You Should Act Now

Even if you can already receive e-invoices, issuing them is the next level.

Use the remaining weeks to review your processes:

• Are all customer data complete?
• Does your ERP system automatically create structured e-invoices?
• Do your employees know the new processes?
• Does digital collaboration with your tax advisor work?

Those who are well prepared will have less stress and more benefits in 2026. E-invoicing is not a bureaucratic monster, but an efficiency booster. With Business Central and the dc extensions, you are future-proof—and can save time, costs, and nerves.

dc supports you with the implementation

We support you from process analysis to full integration in Business Central—tailored, practical, and with experience from numerous projects 💪🏼 Contact us if you want to know how to get your company ready for the e-invoicing requirement 2026!