One of the main roadblocks to the full-scale adaptation of e-invoicing practices has been the standardisation of the format. E-invoices or electronic invoices are a kind of EDI (Electronic Data Interchange) and consist of structured data which requires that two companies must bilaterally agree upon a format. What’s more, dedicated software is needed to process the invoice, as it is not human-readable.

The ZUGFeRD invoice tackles this costly scenario on multiple fronts by implementing a hybrid PDF/EDI solution that has been finding growing success across Europe for almost a decade.

Without the need for bilateral agreements on how data is structured and what data is shared, or the implementation of EDI systems the ZUGFeRD invoice brings flexibility and efficiency to the e-invoicing process.

Hybrid format

Its hybrid format means that receivers of ZUGFeRD invoices don’t require specific software to process the format; the PDF may be manually read and processed, or the standardised data extracted by those companies using EDI or e-invoicing software.

Reduced human error

Without the need for copying information, the digital invoice cuts the possibility of making mistakes, improving processing costs and customer satisfaction. Getting it right the first time saves money.

Automation

With integration into automated systems, the ZUGFeRD invoice brings not only flexibility but efficiency to many business areas including shipping and accounting.

The hybrid ZUGFeRD format combines a human-readable PDF file with embedded, structured machine-readable data that is fully compliant with EU-directive standards.

International standards

The ‘EN 16931’ EU standard outlined by the EU ‘Directive 2014/55/EU’ was adopted by ZUGFeRD with the introduction of ZUGFeRD 2.0 in March 2019, surpassing ZUGFeRD 1.0. 

XML file format

Although the ZUGFeRD invoice is sent as a PDF file, embedded within it is the structured machine-readable data in XML format. XML has the benefits of being non-proprietary and a standard format, meaning it can be both encoded and read by a wide range of software.

PDF/A-3 file format

The ZUGFeRD invoice takes advantage of another non-proprietary standard, the PDF/A-3 format which allows for the embedding of XML data and the convenience of long-term filing for digital invoices.

The ZUGFeRD invoice is structured and human-readable. In organisations where invoices are processed manually, they can be read and dealt with directly, and where e-invoicing software is used, the data is extracted and processed accordingly. This means that one invoice type works for all stakeholders involved.

The ZUGFeRD is in essence a visual invoice that incorporates an invisible level of XML code. Visually, it looks like a standard invoice with all the typical information:

Header information

 This section contains details about the sender and recipient, such as names, addresses, contact information, and tax identification numbers.

Invoice items

Line items listing products or services provided are included, each with their description, quantity, price, and total amount.

Total and payment information

Subtotal, taxes, any discounts, as well as the final total amount due are included, along with payment terms and methods.

The most recent version of ZUGFeRD is 2.1.1., surpassing ZUGFeRD 2.0. Released on October 12th, 2021, it is widely compatible with a number of different standards including the German ‘XRechnung’ and French standard ‘Factur-X’.

The addition of UN/CEFACT Cross-Industry-Invoice (CII) compatibility to the ZUGFeRD invoice’s XML is allowing for the ongoing and widespread adoption of the standard.

Thanks to the German e-invoicing forum (the creators of ZUGFeRD)’s ongoing efforts to ensure that the ZUGFeRD standard does not rely on any third-party software, and its continual development, adoption in both the public and private sectors has been considerable. This is especially true in Germany, where continuing efforts are being made to make it the national standard.

The incorporation of CII compatibility means that the ZUGFeRD invoice can be read by all quality European e-invoicing software, boosting the adoption of the format across all sectors at every scale.

Since the implementation on the 27th of November 2020 of the EU Directive 2014/55/EU requiring all companies in the public sector to send e-invoices, and Germany’s acceptance of ZUGFeRD (2.1.1) by public authorities, the standard is now seeing much greater uptake in the public sector.

With compatibly being one of the major headaches for businesses looking to adopt e-invoicing, ZUGFeRD offers a robust, all-around solution for companies in the European market with its hybrid, EU-directive standard format. And thanks to its publicly developed, non-proprietary nature it’s easy to see why it continues to grow in the public sector as a widely used format and business solution.

To further enrich your understanding of the diverse landscape of e-invoicing standards beyond ZUGFeRD, we invite you to explore additional formats that cater to various industry needs and compliance requirements globally. Each of these formats offers unique benefits and is designed to streamline the invoicing process, ensuring interoperability and efficiency across different systems and sectors:

• Learn more about UBL Invoicing: The Universal Business Language (UBL) invoicing format is a comprehensive standard that facilitates electronic business documents in a consistent manner. UBL is designed to be flexible and is widely adopted for its ability to accommodate various business, legal, and regulatory environments. 
• Discover the EDIFACT Standard: EDIFACT, standing for Electronic Data Interchange For Administration, Commerce, and Transport, is an internationally recognized standard that defines a set of syntax rules for structuring data within an EDI environment. EDIFACT is used extensively across global supply chains, offering a robust framework for electronic transactions. 
• Dive into the XRechnung Format: XRechnung is a standard specifically developed to meet the e-invoicing requirements of the German government. It provides a structured XML format for electronic invoices, ensuring compliance with both national and European regulations. XRechnung is pivotal for businesses operating within or in conjunction with German public sector entities. 
• Explore ODETTE EDI: Originating from the automotive industry, ODETTE EDI (Organization for Data Exchange by Tele Transmission in Europe) is tailored to meet the unique demands of automotive manufacturers and their suppliers. This format facilitates efficient and secure data exchange, enhancing supply chain operations and collaboration.