ZUGFeRD Invoicing for Small Businesses: Getting Started
A practical guide for SMEs and Kleinunternehmer to start using ZUGFeRD before the 2027 mandate.
Germany's 2025 e-invoicing mandate is here — since January 1, 2025, every German business must be able to receive structured electronic invoices. The obligation to send e-invoices is being phased in between 2027 and 2028. For small businesses and Kleinunternehmer, ZUGFeRD is the easiest way to comply. Here is how to get started.
Why you need to act now
The E-Rechnungspflicht (e-invoicing obligation) applies to all B2B transactions between businesses established in Germany. This is not limited to large corporations — it covers freelancers, small businesses, and Kleinunternehmer alike.
The timeline:
- Since January 2025: you must be able to receive e-invoices in structured formats (XRechnung, ZUGFeRD, or any EN 16931-compliant format)
- From January 2027: businesses with annual revenue above €800,000 must send e-invoices for all B2B transactions
- From January 2028: all businesses, regardless of size, must send e-invoices for B2B transactions
Why ZUGFeRD is ideal for small businesses
ZUGFeRD is a hybrid invoice format — it combines a human-readable PDF with machine-readable XML data embedded inside the file. This makes it uniquely suitable for small businesses because:
- Your clients can open it as a normal PDF — no special software needed. Clients who are not yet set up for e-invoicing can still read and process your invoice the traditional way.
- It is fully EN 16931 compliant — meaning it satisfies the German e-invoicing mandate when you use the Comfort profile or higher.
- You send one file instead of two — unlike XRechnung (pure XML), ZUGFeRD bundles everything together. No need to send a separate PDF for readability.
- It works for both B2B and B2G — ZUGFeRD invoices are accepted by private companies and, when generated as the XRechnung profile, by government entities too.
Choosing the right ZUGFeRD profile
ZUGFeRD offers several profiles with increasing levels of detail. The profile determines how much information is included in the embedded XML data:
| Profile | Best for | Complexity |
|---|---|---|
| Minimum | Archiving, internal records | Very low |
| Basic | Simple invoices with basic line items | Low |
| EN 16931 (Comfort) | Full compliance with EN 16931 mandate | Medium |
| Extended | Complex invoices with additional business terms | Higher |
Creating your first ZUGFeRD invoice
Step 1 — Set up your business profile
Enter your business details once and reuse them for every invoice:
- Company name and address as registered with the Finanzamt
- Your Steuernummer (tax number) or USt-IdNr. (VAT identification number)
- Bank details (IBAN and BIC) for payment
Step 2 — Add your client and line items
Enter your client's company name, address, and VAT ID. Add line items with descriptions, quantities, unit prices, and the applicable VAT rate (19% standard, 7% reduced, or 0% for exempt/reverse charge transactions).
Step 3 — Select ZUGFeRD format
Choose ZUGFeRD as the output format and the EN 16931 (Comfort) profile. NormaForm generates a PDF/A-3 compliant file with the XML automatically embedded — you do not need to touch any XML or technical settings.
Step 4 — Send the invoice
Download the .pdf file and send it to your client by email, upload it to their portal, or deliver it however they prefer. The recipient gets a single PDF that looks like a normal invoice but contains the structured data their accounting software can import automatically.
That is it. No portal registration, no Peppol setup, no XML editing.
Special note for Kleinunternehmer
If you use the Kleinunternehmerregelung (small business scheme under §19 UStG), you are still affected by the e-invoicing mandate. You must be able to receive e-invoices since January 2025, and you will need to send them from 2028 at the latest.
The key difference for Kleinunternehmer invoices:
- You do not charge VAT — your invoices show 0% VAT with a reference to §19 UStG
- The VAT category code in the ZUGFeRD XML is 'E' (Exempt) rather than 'S' (Standard rate)
- You must still include your Steuernummer or USt-IdNr. on the invoice — even though you do not charge VAT, the tax number is a mandatory field
Receiving e-invoices from your suppliers
Even before you need to send e-invoices, you must accept them. If a supplier sends you a ZUGFeRD PDF or an XRechnung XML file, you cannot reject it and ask for a traditional PDF instead.
In practice, ZUGFeRD invoices look like normal PDFs — your existing workflow for receiving PDFs by email will work fine. The structured data is there for your accounting software to import automatically if it supports ZUGFeRD, but the PDF is perfectly readable on its own.
What about costs?
A common concern for small businesses is the cost of switching to e-invoicing. The good news:
- You do not need expensive ERP software — lightweight tools like NormaForm are designed specifically for small businesses and freelancers who need compliant invoices without enterprise complexity.
- There is no certification or registration process — unlike some countries' e-invoicing systems, Germany's mandate does not require you to register on a government portal for B2B invoices.
- You do not need a Peppol connection — ZUGFeRD invoices are delivered as files (by email or upload), not through a network that requires access point setup.
NormaForm generates fully compliant ZUGFeRD invoices at a fraction of the cost of enterprise invoicing solutions — starting from a free tier for low-volume senders.
Summary
ZUGFeRD is the most practical e-invoicing format for German small businesses and Kleinunternehmer. It produces a single PDF file that satisfies the mandate while remaining readable by anyone — no special software required on the receiving end. Start with the EN 16931 (Comfort) profile, and you are covered.
For a technical deep-dive into the format, profiles, and XML structure, see our complete ZUGFeRD guide