E-bill - These 5 points you have to consider

E-bill - These 5 points you have to consider

The trend of sending and receiving electronic invoices is continuing rapidly, according to the Bitkom study from 2021: More and more companies are using the option of sending invoices digitally. In 2021, 4 out of 10 companies, and thus around 43 percent, were already sending their invoices online. In 2018, it was still one in five companies (only around 19 percent).

Small businesses in particular use digital invoicing or sending by email to save time and costs. This is because digital dispatch also enables seamless automation of invoicing and payment processes afterwards.

Definition: Electronic invoice

The electronic invoice (also e-bill) is usually sent quickly and cost-efficiently as a PDF format via e-mail or download link. Since the Tax Simplification Act of 2011, the e-invoice is equal to the paper invoice and is now also valid without a signature.

Nevertheless, as with paper invoicing, there are a few things to keep in mind:

1. Mandatory information in the paper invoice also applies to the e-bill.

Of course, an e-invoice must contain the same mandatory information that is found on a standard invoice. These mandatory details are precisely regulated in the German §14 UStG.

These include:

• Name and address of the supplier and the recipient of the service
• Tax number or VAT identification number
• Date of issue of the invoice
• Consecutive invoice number
• Quantity and nature of the supply / scope and nature of the service
• Date of delivery or other service and date of payment
• Remuneration and tax amount as well as tax rate
• Any reductions in charges agreed in advance

2. The recipient must have consented to receive it.

The recipient of the invoice must agree to receive the invoice by e-mail. At least, this is what §14 para. 1 UStG states. However, the form in which consent must be given is left open. A note in the general terms and conditions can already overcome this hurdle. Good to know: If the recipient pays the invoice without a word, this is considered tacit consent.

3. The invoice must be genuine, intact and clearly legible.

Of course, an invoice must be easy to read. Therefore, you should avoid large or too dominant images or graphics that could make the writing illegible. § 14 (3) UStG literally states: "The authenticity of the origin of the invoice, the integrity of its content and its legibility must be guaranteed."
The authenticity can easily be guaranteed by the internal 4-eyes-principle before the invoice is finally sent. The integrity of an e-invoice can be guaranteed by sending it in an unchangeable format. The invoice is then attached as a PDF or image file.

4. E-bills must be archived electronically.

Invoices must be stored in the same way as they reach the company in the original. Therefore, the same applies to e-invoices: They must always be processed and stored as such. Printing and filing is therefore not a good idea; it is best to avoid media discontinuity at this point. On the other hand, it is possible to digitise a paper invoice in order to process it automatically, for example.

5. E-bills must be kept for ten years.

Invoices - whether issued or received - must be kept for ten years in a traceable manner. This is what §14b UStG states. And, as already mentioned in the previous point, in the same form in which the invoice reached or left the company.

If you follow these points when creating and sending e-invoices, you will always be on the safe side.