Can I send ZUGFeRD invoices to public authorities?

It depends on the authority. Federal authorities in Germany usually require the pure XML format XRechnung via the central portal (ZRE) and reject hybrid ZUGFeRD PDFs. However, some state and municipal authorities accept ZUGFeRD from version 2.0 in the COMFORT profile. To be safe, you should always choose XRechnung for B2G contracts.

Which format is better for small businesses?

For small businesses interacting mostly with other businesses (B2B), ZUGFeRD is usually the more convenient solution. Since it looks like a normal PDF, clients without dedicated e-invoicing software can read the invoice without problems, while the XML data remains included for future automation.

Do I need special software to receive ZUGFeRD invoices?

No. Since ZUGFeRD invoices are sent as standard PDF files (specifically in PDF/A-3 format), you can open and read them with any standard PDF reader. However, if you want to automatically import the structured XML data into your bookkeeping, you will need compatible software like Billance.

How can I visualize and read an XRechnung?

Since an XRechnung is a pure XML file, it looks cluttered in a text editor. To display it as a human-readable document, you need an XML viewer. Billance has a built-in visualization feature that converts XML invoices into an attractive, readable invoice document.

Does Billance support both e-invoicing formats?

Yes, Billance natively supports both ZUGFeRD (in the BASIC, COMFORT, and EXTENDED profiles) and XRechnung (in both CII and UBL syntax). You can choose the format freely for every export.

What is the difference between ZUGFeRD and Factur-X?

ZUGFeRD and Factur-X are technically identical. It is a shared German-French standard format for hybrid invoices. Both comply with the European standard EN 16931 and can be processed in either country without limitations.

Is an XRechnung valid outside of Germany?

XRechnung is a specific German national specification (CIUS). It is usually not supported directly in other countries. For cross-border B2B invoicing in Europe, the Peppol BIS Billing 3.0 standard is recommended, which Billance supports via UBL export.

Is the ZUGFeRD BASIC profile sufficient for the mandate?

No. Starting January 1, 2028, e-invoices in domestic B2B transactions must fully comply with the European standard EN 16931. The ZUGFeRD BASIC profile only covers a subset. You must use at least the COMFORT profile (also referred to as EN 16931) for compliant B2B issuance.

How do I enter the Leitweg-ID for an XRechnung in Billance?

Billance provides a dedicated input field for the Leitweg-ID (Buyer Reference, BT-24) when creating an invoice, if you choose to export as XRechnung. This ID is then correctly embedded in the XML structure.

Do I have to archive my invoices as XML?

Yes, under tax law, e-invoices must be archived in their original electronic format. For ZUGFeRD, this is the complete PDF/A-3 file (which contains the XML), and for XRechnung, it is the pure XML file. Printing them out on paper is not GoBD-compliant.

Can I convert an XRechnung to ZUGFeRD afterwards?

Yes, with Billance you can import structured XML files and embed them into a hybrid ZUGFeRD PDF, or vice versa, keeping you flexible at all times.

Are there size limits for ZUGFeRD invoices?

ZUGFeRD invoices are larger than pure XML invoices due to the PDF component. However, this is not an issue for standard email delivery, as file sizes are usually under 500 KB.

ZUGFeRD vs XRechnung: E-Invoice Formats

What are ZUGFeRD and XRechnung? A Short Overview

The e-invoice mandate is approaching, bringing the question of which format you should use. In Germany, two formats complying with the European standard EN 16931 have established themselves: ZUGFeRD and XRechnung. Although both serve the same goal – digitalizing invoicing – they differ fundamentally in structure and purpose.

ZUGFeRD / Factur-X: The Hybrid Format

ZUGFeRD (Zentraler User Guide Forum elektronische Rechnung Deutschland) is a hybrid invoice format. It consists of a visual PDF/A-3 file for human reading and an embedded, structured XML file for automated machine processing. Your benefit: you can open, read, and print the invoice as usual. At the same time, your customer's accounting system can extract and book the XML data automatically. ZUGFeRD is extremely popular in B2B transactions.

XRechnung: The Pure XML Format

XRechnung is a pure, structured XML format (CII or UBL syntax) without a visual component. It contains no PDF representation and is not readable by humans without tools (it looks like source code). Developed specifically for public administration, it is the official standard for public sector invoicing (B2G) in Germany. A viewer or special software is required to read it.

Direct Comparison: ZUGFeRD vs. XRechnung

To make your choice easier, we have summarized the main differences between the two e-invoice formats in a comparison table. This comparison helps you decide which format is best suited for your business partners.

Criterion	ZUGFeRD (Factur-X)	XRechnung
File Format	Hybrid: PDF/A-3 + XML	Pure XML (no PDF component)
Human Readability	Yes (via any standard PDF viewer)	No (requires a special XML viewer)
Machine Processing	Yes (via the XML file)	Yes (fully automated)
Syntax	CII (Cross Industry Invoice)	CII or UBL (Universal Business Language)
Primary Use Case	B2B (Business-to-Business)	B2G (Business-to-Government)
Popularity in 2026	Very high among SMEs, freelancers, and retail	Mandatory for public sector contracts
File Size	Slightly larger (contains PDF & XML)	Very small (pure XML data)
Archiving	PDF + XML (audit-proof archiving)	XML file (visualization possible during audit)
Billance Support	Complete (all profiles)	Complete (including Leitweg-ID input)

Pros & Cons in Detail

Each of the two formats has specific strengths and weaknesses. A detailed look at the details will help you optimize your accounting workflows.

Advantages of ZUGFeRD

Easy readability: Perfect for clients who check invoices manually.
Seamless transition: Looks like a normal PDF invoice, keeping daily operations unchanged.
High customer acceptance: No adjustment issues for your B2B partners.
Flexible profiles: Supports BASIC, COMFORT, and EXTENDED profiles.

Disadvantages of ZUGFeRD

Larger file size: Combining the PDF layout and XML requires more storage space.
Rejected by some authorities: Some public sector entities strictly require pure XML files.

Advantages of XRechnung

Maximum automation: Pure data focus for fast processing without visual distraction.
Minimal file size: Extremely space-efficient and ideal for long-term archiving.
Public sector standard: Legally compliant and mandatory for all transactions with federal and state entities.

Disadvantages of XRechnung

No direct readability: The file is not understandable to humans without helper software.
Low B2B acceptance: Many small businesses are not yet technically equipped to easily process pure XML invoices.

When to Use Which Format? Decision Guide

The choice of the right format depends primarily on your client base. Since Billance supports both formats natively, you can flexibly adapt to your clients' preferences.

B2B (Business-to-Business)

ZUGFeRD for B2B

If your customers are mainly other businesses, freelancers, or contractors, ZUGFeRD is usually the best choice. The recipient can open and read the invoice as usual. If they have modern accounting software, it can still process the embedded XML data fully automatically. This offers maximum convenience for your partners.

B2G (Business-to-Government)

XRechnung for B2G (Public Authorities)

As soon as you perform work for public authorities, you must send an XRechnung. Here, the Leitweg-ID is mandatory. Hybrid PDFs are usually rejected by central government invoice portals (e.g., OZG-RE or ZRE).

Hybrid & Flexibel

The Smart Solution: Using Both Formats Parallelly

Many modern businesses do not restrict themselves to a single format. They use ZUGFeRD for B2B clients and create XRechnungen for B2G contracts. With Billance, this takes no extra effort: the software validates your data against the EN 16931 standard and exports the exact format your client requires.

Grenzüberschreitend

International Markets & Peppol

For international cross-border invoicing within the EU, the Peppol network is becoming increasingly important. XRechnung (especially in UBL syntax) is highly suitable for this.

Technical Basics & Current Versions (2026)

To guarantee interoperability across Europe, both ZUGFeRD and XRechnung are based on the European standard EN 16931. This standard defines the semantic data model and business rules.

ZUGFeRD / Factur-X Versions

ZUGFeRD is technically identical to the French standard Factur-X. In current versions (ZUGFeRD 2.x / Factur-X 1.07 and newer), different profiles are supported. Crucial for the mandate: invoices must be fully EN 16931 compliant. This means profiles like ZUGFeRD MINIMUM or BASIC-WL are not sufficient. You should use the COMFORT profile.

XRechnung Versions and CIUS

XRechnung is a national specifications extension (a CIUS) for Germany. In the current version 3.x, adjustments were made to meet European rules. XRechnung can be issued in either CII (Cross Industry Invoice) or UBL (Universal Business Language) syntax. Billance fully supports both.

Practical Legal Notice

Make sure your e-invoices always comply with the latest version of the standard. Obsolete versions may be rejected. Billance performs automatic syntax and validation checks so that your documents are guaranteed to be error-free.

Frequently Asked Questions (FAQ) about ZUGFeRD & XRechnung

Find answers to the most common questions regarding ZUGFeRD and XRechnung in the context of the German B2B e-invoice mandate.

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