Which e-invoice format is right for your business?
With Germany's e-invoicing mandate, businesses face a key question: XRechnung or ZUGFeRD? Both formats are EN 16931-compliant and legally approved — yet they differ significantly in their technical implementation, use cases and practicality.
This article compares both formats based on concrete criteria, explains when each format is appropriate and provides a clear recommendation for the B2B sector.
Technical and practical differences at a glance
| Criterion | XRechnung | ZUGFeRD |
|---|---|---|
| Data format | Pure XML | Hybrid: PDF/A-3 + embedded XML |
| European standard | EN 16931 (CII or UBL) | EN 16931 (CII profile, from v2.0.1) |
| Human-readable | No — requires viewer | Yes — PDF view included |
| Machine-readable | Yes — fully | Yes — via embedded XML |
| Primary audience | Public sector (B2G) | B2B invoicing |
| Leitweg-ID | Required (for B2G) | Optional |
| Attachments | Referenced only (external files) | Can be embedded in PDF |
| File size | Very small (XML data only) | Larger (PDF + XML) |
| Archiving | XML must be archived | PDF/A-3 is already archive-ready |
| Adoption in Germany | Public sector, government contractors | Broad B2B adoption |
The mandatory format for public sector invoicing
XRechnung was developed on behalf of Germany's IT Planning Council and has been the mandatory format for invoices to federal public administration since 2020. Most federal states have followed suit.
When to use XRechnung: When invoicing public authorities, municipalities or government contractors where a Leitweg-ID is available. For pure B2B transactions, ZUGFeRD is usually the more practical choice.
The hybrid format for everyday B2B use
ZUGFeRD combines the best of both worlds: a human-readable PDF and machine-readable XML data in a single file. This makes ZUGFeRD particularly practical, as recipients without e-invoicing software can still read the invoice.
When to use ZUGFeRD: For B2B invoicing, ZUGFeRD is the recommended choice. The PDF view simplifies adoption, and the format is suitable for both the German and European market.
Guidance for choosing the right format
If you invoice federal, state or municipal authorities, you need XRechnung. Many government portals accept only this format.
For business-to-business invoicing, ZUGFeRD is the pragmatic choice. Choose at least the "EN 16931" profile to meet legal requirements.
Use software that supports both formats. This way you can choose the appropriate format per recipient — without operating two separate systems.
Note on invoice checking: Both XRechnung and ZUGFeRD carry the supplier VAT ID in structured form. Use the free EU VAT validation tool from Docuflair to validate new suppliers via qualified VIES request and receive a PDF audit report.
Conclusion: For most businesses, ZUGFeRD in the "EN 16931" profile or higher is the best choice. It is practical, archive-ready and meets all legal requirements. XRechnung comes into play additionally when invoicing public administration.
Docuflair Invoice supports XRechnung and ZUGFeRD — create, convert and validate e-invoices in a single workflow. Schedule a free demo.
Answers to the most important questions about XRechnung and ZUGFeRD
Yes. Both formats are EN 16931-compliant and approved for the e-invoicing mandate. Many businesses use XRechnung for public sector contracts and ZUGFeRD for B2B transactions. Docuflair Invoice supports both formats.
For the recipient, yes: ZUGFeRD includes a human-readable PDF view, so recipients without specialised software can still read the invoice. XRechnung is pure XML and requires a viewer or ERP system for display.
For invoices to public administration (B2G), a Leitweg-ID (routing ID) is required. In B2B transactions, it is optional. The Leitweg-ID enables unique assignment of the invoice to the recipient within the administration.