E-invoicing Mandate 2026: Future-proof your business now

Since early 2025, it’s official: you must be able to receive electronic invoices. For many companies, that was the starting signal to finally digitize their accounting processes.

And now, at the end of 2025, the next phase is coming up: Starting January 1, 2026, you’ll also need to send e-invoices—at least if you’re a larger business.

What does this mean for you, and how can you get your business ready? Here’s why e-invoicing is coming, what’s changing, and how Microsoft Dynamics 365 Business Central supports you.

 

Why e-invoicing? The simple answer

Invoices should be easier, faster, and more secure. Paper and PDFs are error-prone and slow you down. With e-invoicing, everything’s digital: Data can be processed automatically—no more manual typing. That saves time, makes your processes more transparent, and helps prevent tax fraud.

What’s changed with e-invoicing

An e-invoice isn’t a PDF. It’s structured data—usually in XRechnung or ZUGFeRD 2.1 format—that machines can read and process automatically.

Only systems that can create, receive, and interpret these formats meet the legal requirements. The classic PDF invoice is about to become history.

Looking back: 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 with the recipient’s consent, you can still use them temporarily (until the end of 2026, or 2027 for small businesses).

Many companies got their first experience this year. The good news: If you act now, you’ll be ready for the next steps.

Looking ahead: From 2026, you need to take action

Starting January 1, 2026, phase two begins: You’ll be required to send e-invoices.

• Large companies start in 2026.
• Smaller businesses have transition periods until 2027.
• By 2028, it’s mandatory for everyone.

If you stick with analog processes, you risk extra work—and tax issues.

Opportunities and challenges

E-invoicing brings a lot of benefits:

• Faster processes: Automated processing saves time.
• Fewer errors: No more wrong amounts or typos.
• Better cash flow: Faster payments thanks to optimized workflows.
• More transparency: Every invoice is digitally traceable.

But: The switch affects almost every department—accounting, IT, sales, procurement—and you’ll need clear processes.

Business Central: Your key to compliance

Microsoft Dynamics 365 Business Central already comes with plenty of e-invoicing features: Create, receive, and process XRechnung and ZUGFeRD out of the box.

But for many companies, the standard isn’t enough. As soon as you need automated delivery (like PEPPOL), complex workflows, or archiving, you’ll need extra tools. That’s where we come in 💚

At dc AG, we’ve built a portfolio of Business Central extensions that cover your entire e-invoicing process:

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

Why you should act now

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

Use the remaining weeks to check your processes:

• Are all your customer records complete?
• Does your ERP system automatically create structured e-invoices?
• Do your team members know the new processes?
• Is digital collaboration with your tax advisor working?

If you’re well prepared, 2026 will be less stressful—and more rewarding. E-invoicing isn’t a bureaucratic monster, it’s an efficiency booster. With Business Central and dc extensions, you’re ready for the future—and you’ll save time, money, and nerves.

dc supports your e-invoicing journey

We guide you from process analysis to full Business Central integration—tailored, hands-on, and with experience from countless projects 💪🏼 Reach out if you want to know how to get your business ready for the 2026 e-invoicing mandate!