The Challenge of Digital Invoice Processing

With the introduction of the e-invoicing requirement, companies face a central question: Which invoice format is the right one? The choice between XInvoice and ZUGFeRD has far-reaching implications for the automation of accounting and compliance with regulatory requirements. However, many companies face a dilemma:

• Is the XRechnung compatible with my ERP system?

• Is a hybrid format like ZUGFeRD sufficient?

• How can invoices be efficiently automated?

XInvoice: The Structured Standard for the Public Sector

The XRechnung is a purely structured XML format developed specifically for public administration. This means:
✅ Standardized and recognized throughout the EU
✅ Mandatory format for public contracting authorities
✅ High machine readability for automated processing
❌ No direct human readability (only with special software)

🔹 Who is XRechnung suitable for?

• Companies that regularly issue invoices to the federal government, states, or municipalities

• Firms with strong ERP systems that support structured data handling

• Companies aiming for fully digital processing

ZUGFeRD: The Hybrid Solution for Companies

ZUGFeRD combines a PDF with embedded XML data, allowing both humans and machines to read the invoice. The format offers:
✅ Flexibility: Hybrid of digital and readable
✅ Compatibility with many ERP and accounting systems
✅ Compliance with the EU standard for electronic invoices
❌ Possible issues with full automation

🔹 Who is ZUGFeRD suitable for?

• Medium-sized companies that work with various business partners

• Firms looking for a gradual transition from paper-based invoices

• Companies that cannot yet fully switch to structured data

Which solution is the best for the future?

The answer lies not only in the choice of format but in the intelligence of the processing. Companies should ask themselves:
➡️ How can I fully automate invoice processing?
➡️ How do I reduce manual posting errors and approval processes?
➡️ How can AI help process e-invoices accurately?

Here Taxel comes into play: Our AI-supported invoice processing automatically recognizes the format, processes both XRechnung and ZUGFeRD, and integrates seamlessly into existing ERP systems.

📌 Conclusion: While XRechnung is suitable for large, digitized companies and public contracting authorities, ZUGFeRD remains a flexible solution for SMEs. The real game changer, however, is automation through AI.