A German Customer Sent You an XRechnung: How to Read and Book It

If a German customer or supplier has sent you an XML file, an attachment you cannot open in a PDF viewer, or an email saying their new invoicing system will only send "XRechnung," you are not alone. Since 1 January 2025, German businesses must be able to receive structured electronic invoices in XRechnung or ZUGFeRD format. The obligation to receive is already live; the obligation to issue is coming in phases from 2027.

This guide explains what XRechnung and ZUGFeRD are, how they differ, what the files contain, how to extract the data and book it in your accounts, and what the German issuing mandate timetable means for your business.

Last updated: June 2026

What is XRechnung?

XRechnung is Germany's national standard for structured electronic invoices, built on the European EN 16931 core invoice standard. It is a pure XML file: there is no PDF, no human-readable layer, just structured data in machine-readable format.

The name comes from "X" (for the XML data structure) and "Rechnung" (German for invoice). XRechnung was originally developed for German public sector procurement, where it has been mandatory since 2020 for suppliers invoicing federal authorities and since 2021 for many state and local authorities. The Growth Opportunities Act (Wachstumschancengesetz), passed in 2024, extended the receiving obligation to all German B2B transactions from 1 January 2025.

An XRechnung file typically has the extension .xml. Opening it in a text editor shows structured XML data with tags like <cbc:ID>, <cac:TaxTotal>, and <cbc:TaxAmount>. It is not designed to be read by humans directly: it is designed to be processed by accounting software.

Key XRechnung facts:

• Built on the EU standard EN 16931 (the same standard used by PINT-AE in the UAE, BIS Billing 3 in Scandinavia, and others)
• Uses UBL 2.1 or UN/CEFACT CII syntax (both are valid)
• Carries all German VAT-required invoice fields in structured form
• Mandatory for all German B2B invoices (receiving from January 2025, issuing from 2027)
• Government invoices via the ZRE (Zentraler Rechnungseingang) or OZG-RE portals have been XRechnung since 2020

What is ZUGFeRD, and how is it different from XRechnung?

ZUGFeRD (Zentraler User Guide des Forums elektronische Rechnung Deutschland) is a hybrid format that combines a standard PDF with an embedded XML data layer. The PDF looks like a normal invoice to a human: you can open it, read it, and print it. But embedded in the PDF is an XML file containing all the same data in structured, machine-readable form.

ZUGFeRD uses the UN/CEFACT CII syntax for its XML layer and conforms to EN 16931 at "COMFORT" profile level or above.

The practical difference:

Both XRechnung and ZUGFeRD comply with EN 16931. From a legal standpoint, they are equivalent. The choice between them is practical: ZUGFeRD is popular in the private sector because it maintains the human-readable PDF, while XRechnung is the format used for public sector invoicing.

Factur-X is the French equivalent of ZUGFeRD and uses the same underlying specification. If a French supplier sends a Factur-X invoice, it is technically compatible with ZUGFeRD processing tools.

What data is in an XRechnung or ZUGFeRD invoice?

Both formats carry the same core data, all structured in XML fields:

Seller information:

• Legal name and address
• VAT registration number (Umsatzsteuer-Identifikationsnummer, USt-IdNr)
• Tax number (Steuernummer) where applicable
• Bank details (IBAN and BIC)

Buyer information:

• Legal name and address
• VAT registration number or tax number

Invoice header:

• Invoice number and date
• Payment due date
• Currency (EUR for German domestic invoices)
• Purchase order reference (if applicable)

Line items:

• Description and quantity
• Unit price and line total
• VAT rate (19% standard, 7% reduced, 0% zero, or exempt)
• VAT amount per line

Invoice totals:

• Net total (sum of line item totals)
• Total VAT by rate
• Gross total payable

Payment information:

• IBAN and BIC for bank transfer payment
• Payment reference

The structured nature of this data is what makes automated processing possible. Your accounting software can extract any field without human re-entry, match the invoice to a purchase order, validate the VAT calculation, and post the entry to the correct accounts.

How do you read an XRechnung file without accounting software?

If you receive an XRechnung XML file and do not yet have software that processes it, you have two options for reading it:

Option 1: Free online validators and viewers

The German government's ZRE portal (xrechnung.de) and third-party tools can render XRechnung XML into a human-readable HTML view. Upload the XML file and the tool produces a formatted invoice view. This is suitable for occasional use or for verifying a specific invoice.

Option 2: Dedicated XRechnung viewer software

Several free desktop viewers are available for XRechnung and ZUGFeRD. These applications render the XML as a formatted invoice without requiring a full accounting system. German software providers offer free viewers as a starting point before committing to a full accounting integration.

For ZUGFeRD, you can simply open the PDF attachment in any PDF viewer for the human-readable layer. To access the embedded XML, use a ZUGFeRD-compatible reader or extract the attachment using Adobe Acrobat or similar tools.

The limitation of manual reading: while you can view the invoice, you still need to re-enter the data into your accounts if your accounting software does not process the XML automatically. This defeats much of the efficiency benefit of structured invoicing.

How to book an XRechnung or ZUGFeRD invoice in AccountsOS

AccountsOS processes both XRechnung and ZUGFeRD invoices automatically when they arrive via the inbox or are uploaded directly:

1. The invoice arrives via your AccountsOS email inbox, or you upload the XML or PDF file to the document vault
2. AccountsOS detects the invoice type (XRechnung or ZUGFeRD) from the file structure
3. The AI extracts all fields: supplier name, invoice number, date, amounts, VAT breakdown, and line items
4. A bill is created in your accounts, pre-populated with the extracted data
5. Finn (the AI accountant) suggests the appropriate category for each line item based on your existing categorisation patterns
6. You review, confirm, and mark as approved

For businesses with high volumes of XRechnung invoices from German suppliers, the process is almost entirely automated. The AI handles supplier matching, category assignment, and VAT code selection. Human review is only needed for exceptions.

The receiving obligation that applies to German businesses since January 2025 is met by your accounting software's ability to process incoming structured invoices. AccountsOS handles this as part of its standard document processing pipeline.

When do German businesses need to issue e-invoices?

Germany's issuing mandate follows a phased timetable set by the Growth Opportunities Act:

For non-German businesses that invoice German B2B customers, the issuing obligation applies to German-established businesses. A UK or UAE business invoicing a German customer is not a German-established business and does not fall under the German issuing mandate. However, if your German customer starts asking for XRechnung format (which they may do from 2027 for their own processing efficiency), being able to generate one is a commercial advantage.

What does Germany's e-invoicing mean for businesses outside Germany?

If you are a non-German business with German customers, Germany's e-invoicing changes affect you in two ways:

Receiving: If you have a German entity (a German GmbH or subsidiary), that entity must be able to receive XRechnung and ZUGFeRD since January 2025. AccountsOS handles this automatically.

Issuing to German customers: From 2027-2028, your German customers may request or require XRechnung format for their own efficiency and compliance. Even though you are not legally required to issue XRechnung as a non-German business, large German customers may make it a vendor requirement. Having accounting software that can generate EN 16931-compliant invoices positions you ahead of this transition.

AccountsOS's invoice data structure is already aligned with EN 16931 fields. We are monitoring the German issuing mandate timetable to assess when native XRechnung generation becomes a commercial priority for AccountsOS users.

Common issues when receiving German e-invoices

The file extension is unfamiliar: XRechnung files typically arrive as .xml or .ubl.xml. ZUGFeRD files arrive as .pdf. If you receive an XML file in your email and are not sure what it is, check the first few lines: XRechnung will contain XML tags and a reference to the standard.

Your email system blocks XML attachments: Some email security configurations block .xml attachments. If a German customer reports that their invoices are not arriving, check whether your email gateway is filtering XML files.

The invoice references a German VAT number you need to verify: German VAT numbers follow the format DE followed by nine digits. You can verify them via the European Commission's VIES system (ec.europa.eu/taxation_customs/vies/).

Multiple XRechnung profiles exist: XRechnung has several profiles (MINIMUM, BASIC, EN16931). All conform to the EN 16931 standard but carry different amounts of optional data. Accounting software should handle all profiles.

ZUGFeRD version mismatches: ZUGFeRD has multiple versions (1.0, 2.0, 2.1). Version 2.1 at the "COMFORT" profile or above conforms to EN 16931. Older versions (1.0) pre-date EN 16931 and have slightly different field structures.

Frequently Asked Questions

Since when do German businesses have to receive e-invoices?

Since 1 January 2025. The Growth Opportunities Act (Wachstumschancengesetz) of 2024 made it mandatory for all German B2B businesses to accept XRechnung and ZUGFeRD invoices from other German businesses. There is no minimum size threshold: all German businesses, including sole traders and micro-businesses, must be able to receive structured e-invoices.

Do I have to accept XRechnung if my supplier is in Germany but I am not?

If you are not established in Germany and have no German VAT registration, the German domestic receiving obligation does not apply to you directly. However, if your German supplier sends an XRechnung instead of a PDF, being able to process it is a practical necessity. AccountsOS handles XRechnung ingestion automatically regardless of your jurisdiction.

When do German businesses have to start issuing e-invoices?

From 1 January 2027 for large businesses (annual turnover above EUR 800,000 in the previous year). From 1 January 2028 for all other German B2B businesses. The receiving obligation (since January 2025) preceded the issuing mandate by two to three years to give businesses time to prepare.

What is the difference between XRechnung and ZUGFeRD?

XRechnung is a pure XML file with no human-readable layer. ZUGFeRD is a PDF with an embedded XML data file: it looks like a normal PDF to a human but contains a machine-readable XML layer. Both conform to the EU EN 16931 standard. ZUGFeRD is often preferred by private-sector businesses because the PDF remains readable without special software.

Can AccountsOS receive and book XRechnung invoices?

Yes. AccountsOS processes XRechnung and ZUGFeRD invoices as part of its standard document ingestion pipeline. When an XRechnung XML file or a ZUGFeRD PDF arrives in your AccountsOS inbox or is uploaded to the document vault, the system extracts the structured data, creates a bill, and suggests category assignments automatically.

Does Germany use Peppol?

Germany is a member of the Peppol network and German businesses can transmit XRechnung invoices via Peppol access points. However, XRechnung transmission in Germany is not exclusively Peppol-based: the public sector uses the ZRE and OZG-RE government portals, and private-sector transmission may be via email or direct system connection. Peppol is one transmission channel, not the only one.

What do I do if my current accounting software cannot process XRechnung?

You have three options: (1) use a free online viewer to manually read and re-enter the data, (2) add a standalone XRechnung viewer to extract data and import it, or (3) switch to accounting software that processes XRechnung natively. Option 3 is the most efficient for businesses with more than a handful of German supplier invoices. AccountsOS handles XRechnung and ZUGFeRD ingestion automatically.