Which invoicing software suits a small team without an IT department, and what does Germany's 2027 e-invoicing mandate change?
From 1 January 2027, German businesses with prior-year turnover above €800,000 must issue e-invoices to other businesses; smaller ones from 2028. How a team without an IT department checks whether its software already produces XRechnung or ZUGFeRD, and which criteria to use when choosing new invoicing software.
A small team without an IT department needs invoicing software that issues and receives e-invoices under the EN 16931 standard and runs day to day without anyone administering it. PASSION4IT supports this decision vendor-independently with Smart Software Selection. From 1 January 2027, Germany’s e-invoicing mandate changes outgoing invoices for every business with prior-year turnover above €800,000; smaller businesses get one more year.
What you’ll take away:
- When your business has to start issuing e-invoices, and what the €800,000 threshold means
- Why a PDF attached to an e-mail is not an e-invoice
- Three questions to ask your vendor to find out whether your current software is enough
- Five criteria for invoicing software when nobody on the team looks after it
- A timeline working back from 1 January 2027 or 2028
What does the 2027 e-invoicing mandate change for a small team?
From 1 January 2027, businesses whose turnover in the previous year exceeded €800,000 must issue invoices to other domestic businesses as e-invoices. For businesses with prior-year turnover up to €800,000 the transition period runs until the end of 2027, so the obligation applies to them from 1 January 2028. Every domestic business has had to be able to receive e-invoices since 1 January 2025, without exception.
For 2027, the relevant figure is therefore your turnover in the current year, 2026. If you are close to the threshold, plan for the earlier date.
Until the end of 2026, every business may still send other kinds of invoice. Paper is always allowed, a PDF by e-mail only if the recipient agrees. If you exchange invoices today through an EDI procedure that does not produce an e-invoice in the legal sense, you may continue until the end of 2027. All of this comes from the German Federal Ministry of Finance FAQ on e-invoicing (in German), read on 6 October 2026.
Is a PDF sent by e-mail already an e-invoice?
No. A PDF attached to an e-mail does not count as an e-invoice, even though it is sent electronically. Valid formats follow the European standard EN 16931, which in practice means XRechnung and ZUGFeRD from version 2.0.1.
ZUGFeRD comes with a restriction that is easy to miss in product descriptions. The MINIMUM and BASIC-WL profiles do not meet the requirements. Software that lists ZUGFeRD among its features may therefore still deliver too little.
You do not need an e-invoice for small amounts up to €250 gross, for travel tickets, or for supplies to private consumers. Small businesses under the German Kleinunternehmer rule are exempt from issuing them. They still have to be able to receive them.
How do I check whether my current invoicing software can handle e-invoices?
With three questions to your vendor, in writing. Does the software produce invoices as XRechnung or as ZUGFeRD from version 2.0.1? Which ZUGFeRD profile does it use? Does it display incoming e-invoices in readable form and file them as records? If the answer to the second question is MINIMUM or BASIC-WL, that will not be enough once the deadline applies.
Then run a test with real data. Issue a sample e-invoice and send it to your tax adviser or to a business partner who already processes e-invoices. If it arrives without anyone having to fix it, your outgoing invoices are ready, and the mandate alone does not require new software.
If you write invoices in a word processor today and send them as PDFs, you will fail this test in any case. For that team, 2027 is the reason to switch.
Which invoicing software works for a small team without an IT department?
Software that runs without in-house administration and handles e-invoices in both directions. Five criteria decide, in the order of the table below. Features such as quote templates or dunning levels come afterwards.
| Criterion | How to recognise it | Why it matters without an IT department |
|---|---|---|
| Runs without administration | Updates come from the vendor, users are added through the interface | Nobody on the team has to maintain installations or servers |
| Outgoing e-invoices | XRechnung or ZUGFeRD from 2.0.1 under EN 16931; MINIMUM and BASIC-WL profiles are not enough | Without this, outgoing invoices will not meet the mandate from 2027 or 2028 |
| Receiving and filing | Incoming XML files are displayed in readable form and filed as records | You have had to receive them since 2025, and in the end a person has to read them |
| Link to your tax adviser | Records and bookkeeping data reach the accountant without manual exports | Every manual step at month end is a source of errors |
| Roles and permissions | Writing, approving and viewing can be granted separately | Even in a team of four, not everyone should be able to cancel invoices |
The first criterion carries the most weight. How to check it in conversations with vendors is covered in Which software suits a small team without an IT department?.
For the fourth criterion, ask your tax adviser first. They know in which form they take over data, and exactly that route has to work in every candidate.
How do I get to a shortlist of invoicing software quickly?
With three to five vendors, measured against your own invoicing cases. Write down two or three typical cases, for example an invoice to a regular customer, a credit note and a partial invoice. Each vendor demonstrates exactly these cases in their software, with an e-invoice as the output. For teams under 50 employees, two to four weeks is realistic.
If invoicing is part of a larger decision, such as a new ERP system, Smart Software Selection fits. It builds a script from your use cases, and three to five vendors show their solution against it in a casting. For a standalone invoicing tool in a small team, that effort is usually too much, and we will tell you so.
What timeline gets me to 1 January 2027?
With turnover above €800,000 in 2026, you have a little over twelve weeks from the start of October. That is enough if you finish checking your current software in October.
- By the end of October, put the three questions to your current vendor and send a sample invoice to your tax adviser.
- In November, if the software falls short, build a shortlist of three to five vendors and have them demonstrate your own cases.
- In early December, decide, sign the contract and transfer your master data.
- By mid-December, send sample invoices to two or three business partners and collect their feedback.
- From 1 January 2027, invoices to businesses go out only as e-invoices, except small amounts up to €250.
With €800,000 or less, the same sequence applies with 1 January 2028 as the deadline. You can then use 2027 to issue e-invoices voluntarily and find errors while other formats are still allowed.
Frequently Asked Questions
When does a small business have to issue e-invoices in Germany?
It depends on prior-year turnover. Above €800,000, the obligation for invoices to other domestic businesses applies from 1 January 2027. At €800,000 or less, it applies from 1 January 2028.
Do small businesses under the Kleinunternehmer rule have to receive e-invoices?
Yes. Since 1 January 2025, every domestic business must be able to receive e-invoices, including those under the Kleinunternehmer rule. They do not have to issue any, and an e-mail inbox is enough for receiving.
Is a PDF sent by e-mail still enough from 2027?
Not for businesses with prior-year turnover above €800,000 when the invoice goes to another domestic business. A PDF attached to an e-mail is not an e-invoice. Until the end of 2026 it is still allowed with the recipient’s consent, and for smaller businesses until the end of 2027.
Do I need new invoicing software for the e-invoicing mandate?
Only if your current software produces neither XRechnung nor ZUGFeRD from version 2.0.1 in a valid profile. Three written questions to your vendor and a sample invoice to your tax adviser settle this.
Does PASSION4IT help with choosing invoicing software?
Yes, when invoicing is part of a larger decision, for example about ERP, CRM or DMS. PASSION4IT’s Smart Software Selection is vendor-independent, involves no licences or commissions, and runs at a fixed price settled before the engagement. The consulting share is eligible for BAFA funding, with a maximum grant of €1,750 in Bavaria. For a standalone invoicing tool in a small team, your own shortlist following the approach in this article is usually enough.
How long does choosing invoicing software take?
For a team under 50 employees, two to four weeks is realistic, provided your own invoicing cases are written down first. Before 1 January 2027, also allow two weeks for sample invoices.