ZUGFeRD vs. XRechnung: The Difference, Simply Explained

Two formats, one goal: the electronic invoice. Still, many merchants confuse ZUGFeRD and XRechnung with each other — or worse, take them for competing standards where you can only use one. In customer conversations we hear the same question almost weekly: "Isn't ZUGFeRD enough? Then what is XRechnung for?" The answer is simpler than you'd think.

The short answer

ZUGFeRD and XRechnung aren't competitors but two ways of implementing the same European standard (EN 16931). ZUGFeRD packs the invoice data as XML inside a PDF file — humans and machines can read the same file. XRechnung is a pure XML format and mandatory in Germany when you invoice public contracting entities (federal, state, municipal). In B2B, you're generally free to use either once the E-Rechnung mandate applies in 2027/2028.

What ZUGFeRD is

ZUGFeRD stands for "Zentraler User Guide des Forums elektronische Rechnung Deutschland" — a name only bureaucrats could love. Technically it's a hybrid format: a PDF/A-3 file with an XML file containing the structured invoice data embedded in it. Open the invoice in a PDF viewer and you see the familiar invoice layout. Feed it into an accounting system and the program reads out the XML attachment — line by line, amount by amount, without typing.

One file, two readers. That's the real trick, and the reason ZUGFeRD has become the de facto standard in German B2B: you send a file that any human can open — and that is machine-readable anyway.

Important to know: not every ZUGFeRD version meets the legal requirements for an E-Rechnung. Only from version 2.0.1 onward does the Federal Ministry of Finance consider the format recognized for VAT purposes. Within ZUGFeRD there are also profiles (Minimum, Basic, EN 16931, Extended) that determine how many data fields are delivered. For the E-Rechnung mandate you need at least the EN 16931 profile. Older 1.x versions still sitting in some systems don't qualify.

By the way: since version 2.0, ZUGFeRD is technically identical to the French Factur-X. If you have French customers, you're effectively sending the same format — just under a different name.

What XRechnung is

The XRechnung is Germany's implementation of the European standard EN 16931 — specifically a so-called CIUS (Core Invoice Usage Specification). That means: it takes the European specifications and adds German mandatory fields. The best known is the Leitweg-ID, the routing number authorities use to assign an invoice internally.

Unlike ZUGFeRD, the XRechnung is a pure XML format. There is no human-readable invoice layout — the data exists only in structured form. Nobody voluntarily looks at an XML file; for processing, all the better.

The standard is managed by KoSIT, the federal government's coordination office for IT standards. And here the mandate comes in: since November 27, 2020, companies supplying federal authorities must be able to create XRechnungen. The states (Länder) followed step by step. If you supply public contracting entities, there's no way around XRechnung — ZUGFeRD alone doesn't suffice there. The E-Rechnung mandate deadlines long since affect more than just suppliers to authorities: from 2027, high-revenue companies join, from 2028 everyone.

The comparison at a glance

Which format do you need?

The rule of thumb is simple:

• You invoice companies (B2B): ZUGFeRD is your format. It's the default setting in the common accounting systems, and your customers get a file they can open and archive without special software.
• You invoice public contracting entities (B2G): XRechnung, period. The client's Leitweg-ID belongs in the document, and the format must conform to KoSIT specifications.
• You do both: You need both — but every modern invoicing system creates both formats from the same data. It's an export switch, not a process.

Example from practice: A machinery manufacturer delivers tools to two customers: a mid-sized craft business and the municipal utility. For the craft business, a ZUGFeRD invoice goes out by email — open the PDF, check it, book it. For the municipal utility, the same system generates an XRechnung with Leitweg-ID, uploaded via their invoice intake portal. One data pool, two formats, zero extra effort after initial setup.

What many overlook, by the way: the E-Rechnung mandate from 2027 governs issuing, not the format in detail. Both ZUGFeRD (from 2.0.1) and XRechnung meet the requirements — the mandate doesn't prescribe either one, only that an electronic format goes out at all. Which one is decided by the recipient, or by your agreement with them.

What this means for your shop

If your online shop processes orders from business customers, the invoice belongs in the picture — even though final invoicing often runs in the accounting system or ERP. The shop side of the chain matters mainly for data quality: keeping customer data, VAT IDs, and order lines clean is half the E-Rechnung.

Kontorly is a German B2B e-commerce platform (SaaS) for online shops with tiered pricing, customer groups, and direct ordering by business customers — Made in Germany, from Hamburg. With our customers, invoice data flows directly into downstream processing; ZUGFeRD is integrated as the standard. Anyone also supplying authorities adds XRechnung in the invoicing system of their choice — the data foundation is already right.

More background on the mandate's timeline — the obligation to receive since 2025, the obligation to issue from 2027 above €800,000 revenue, from 2028 for everyone — is in our article on the E-Rechnung mandate 2027.

FAQ

Is ZUGFeRD or XRechnung better?

Neither is "better" — they solve different cases. ZUGFeRD is the most practical standard in B2B trade (one file for humans and machines); XRechnung is mandatory with authorities. Most systems handle both.

Do I have to send XRechnung from 2027?

No. The E-Rechnung mandate from 2027 prescribes an electronic format, not a specific one. ZUGFeRD from version 2.0.1 and XRechnung both meet the requirements. The XRechnung obligation remains limited to invoices to public contracting entities.

Can an invoice be both, ZUGFeRD and XRechnung?

Yes, technically the ZUGFeRD reference profile "XRechnung" exists, connecting both worlds. In practice, though, you usually send either one or the other — depending on the recipient.

What does the transition cost?

For existing systems, the transition is usually an update plus configuration, not a new purchase. Anyone still creating invoices manually as PDFs should use 2026 to set up invoicing and the shop data flow cleanly, once.