Starting in January 2025, the implementation of a European Union Directive will significantly affect invoice processes in Germany, particularly when working with authorities and other companies. As companies conducting business in Europe face increasing regulatory requirements, the implementation of standards for electronic invoicing has become an important issue.
At Navan, we want to help ensure that this transition is smooth and efficient for our customers. Here you can find out what the new e-invoicing requirements mean for companies operating in Germany and how Navan can help you implement them.
Germany, along with other European Union member states, is introducing e-invoicing as part of EU Directive 2014/55/EU, which requires the use of electronic invoices for transactions with public authorities. The directive is part of a broader effort to standardize invoicing, reduce tax fraud, and increase transparency across EU countries.
From January 1, 2025, companies active in Germany must be able to receive invoices in electronic formats such as ZUGFeRD or XRechnung. This applies to both the public sector and the B2B context. These formats comply with the e-invoicing standards set by the European Union, which are intended to enable efficient, automated invoice processing.
Did you know?
The German government has granted a grace period for the issuing of non-electronic invoices. If the recipient agrees, companies can continue to issue PDF invoices until December 31, 2026.
Moving to e-invoicing is not just about compliance, it also offers the opportunity to increase efficiency, reduce costs, and improve data accuracy in your invoicing process.
With electronic invoices, companies can benefit from the following advantages:
These benefits align with Navan's mission to optimize travel and expense management for companies, helping them save time, reduce costs, and adapt to changing regulatory requirements.
At Navan, we recognize the complexities and challenges that regulatory changes can bring, particularly to financial and administrative processes such as invoicing.
As a leading travel and expense management platform, we see it as our mission to help companies comply with ever-changing regulations while enabling them to manage their expenses easily and efficiently.
These are the steps Navan takes for e-invoicing:
While the mandate for receiving e-invoices begins in January 2025, Navan will continue to provide PDF receipts and invoices for all travel bookings until the full e-invoicing requirements become mandatory. This ensures your invoicing process remains familiar and manageable during the transition period.
Navan is actively preparing to meet the upcoming e-invoicing standards required by the EU Directive 2014/55/EU. As the deadline approaches, we will integrate the ability to create and process ZUGFeRD- and XRechnung-compliant invoices to help ensure your business is fully prepared for January 1, 2025, without any limitations.
The Navan platform is designed to simplify your travel management and invoicing processes. We take care of the technical details and legal compliance in the background. This allows your team to focus on the core business without having to deal with complex laws. Whether you issue or receive invoices, our solution automatically adapts to the latest compliance requirements in Germany and the EU.
We will continue to support you with further changes and adjustments in the e-invoicing area in the future. Our team of experts is available to help you understand the effect of the new regulations, help ensure a smooth transition, and answer any questions that arise when preparing for e-invoicing.
The deadline of January 1, 2025 is fast approaching. Companies should prepare for electronic invoicing early. Whether you are already familiar with e-invoicing or are just starting to make the switch, Navan is here to handle the complexities of compliance so your business can focus on its core activities.
Would you like to find out more about how Navan can support your company with its travel management and invoicing needs? Request a demo now.