ZUGFeRD vs XRechnung: Choosing the Right Format
Compare the two main e-invoicing standards in Germany
When implementing e-invoicing in Germany, businesses face a choice between two main standards: ZUGFeRD and XRechnung. Understanding the differences helps you choose the right format for your needs.
ZUGFeRD: The Hybrid Approach
ZUGFeRD combines a PDF document with embedded XML data. This hybrid format ensures human readability while enabling automated processing. It's ideal for businesses that want to maintain familiar PDF workflows.
Advantages of ZUGFeRD:
- Familiar PDF format for recipients
- No special viewer software required
- Suitable for both B2B and B2C transactions
- Multiple profile levels (BASIC, COMFORT, EXTENDED)
XRechnung: Pure XML Format
XRechnung is a pure XML format designed specifically for invoices to public sector entities. It's mandatory for B2G (Business-to-Government) transactions in Germany.
Advantages of XRechnung:
- Fully standardized for public sector
- Smaller file sizes
- Optimized for automated processing
- Required for government contracts
Which Should You Choose?
For most businesses, ZUGFeRD offers the best balance of compatibility and automation. Choose XRechnung if you primarily invoice government entities. Many businesses implement both formats to cover all scenarios.