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EDI or web EDI, and what is an e-invoice?

With EDI, two systems exchange business documents directly and automatically; with web EDI, a person types the data into a portal. An e-invoice is something else: in Germany, an invoice format defined in the VAT Act (Umsatzsteuergesetz, UStG) that only concerns the invoice, not the order or despatch advice. The three terms overlap, because an EDI invoice can also be an e-invoice. This page puts them in context and shows what Germany's e-invoicing mandate means for existing EDI processes.

Last updated 18 October 2026 · fokus it solutions, Jens Musleh

What EDI does

EDI (Electronic Data Interchange) means that orders, order confirmations, despatch advices and invoices travel as structured files from your ERP system to your partner's ERP system. Nobody retypes anything. Format and content are usually set by the larger partner in its implementation guide, often EDIFACT (see EDIFACT explained) or, in the automotive industry, VDA. Transmission uses methods such as AS2, OFTP2 or SFTP; there is an overview under Transmission methods.

The advantage lies in the whole process: the order lands in the order system without data entry, the despatch advice is generated from shipping, the invoice from billing. The page on message types explains which message types are common.

Web EDI replaces the interface with a portal

Web EDI is a web portal, usually run by the customer or a service provider. There you see your customer's orders and enter the order confirmation, despatch advice and invoice by hand. The portal converts your entries into EDI messages and sends them to the customer.

For the customer, this is EDI; for you, it is typing. Your ERP system knows nothing about it, so every order also has to be created in your own system. In return, web EDI is cheap and quick to set up: according to its price list, a clearing centre such as cctop charges €60 to €110 per month with no set-up fee, and some retailers' portals are free for suppliers. With few documents a month and a single customer, this is often the most sensible solution. With many documents, or several customers with their own portals, the data entry effort grows with every document.

The e-invoice under EN 16931, XRechnung and ZUGFeRD

Under section 14(1) of the German VAT Act, an e-invoice is an invoice “that is issued, transmitted and received in a structured electronic format and enables electronic processing” (our translation). A PDF is therefore not an e-invoice, even if it arrives by email.

The law allows two kinds of format:

  1. Formats that comply with the European standard EN 16931. The German Federal Ministry of Finance (BMF) explicitly names XRechnung and ZUGFeRD from version 2.0.1, with the exception of the MINIMUM and BASIC-WL profiles.
  2. Agreed formats. The issuer and recipient can agree on another structured format, provided the information required by law can be extracted from it correctly and completely into a format that complies with the standard.

XRechnung is run by the Coordination Office for IT Standards (KoSIT) on behalf of Germany's IT Planning Council. It implements the EN 16931 data model and allows two syntaxes: UBL 2.1 and UN/CEFACT CII. An XRechnung is a pure XML file with no visual part.

ZUGFeRD comes from the Forum elektronische Rechnung Deutschland (FeRD), which maintains it under the name ZUGFeRD/Factur-X. It is a hybrid format: a PDF/A-3 for reading, with the same invoice embedded as XML. If the two parts differ, the BMF takes the view that the structured XML part prevails.

Peppol as a network for e-invoices

Peppol is not a file format but a network with common rules for exchanging business documents. It is run by OpenPeppol, a non-profit association under Belgian law. Companies send and receive through an accredited Peppol service provider of their choice. Technically, transmission uses an AS4 profile, and recipients are found via the SML and SMP directory services.

In practice, this means that Peppol carries e-invoices, while EDI messages usually travel directly between the partners via AS2, OFTP2 or SFTP. German law does not prescribe a transmission method. According to the BMF, email, an interface, portal download and other routes are all possible; the contracting parties agree among themselves which applies.

Deadlines of the German e-invoicing mandate and what happens to EDI

Since 1 January 2025, e-invoices must generally be used for supplies between businesses established in Germany. For issuing them, the Federal Ministry of Finance's FAQ sets out transition periods:

Period What applies according to the BMF
since 1 January 2025 Every business established in Germany must be able to receive e-invoices. An email inbox is sufficient.
1 January 2025 to 31 December 2026 Instead of an e-invoice, any issuer may send another type of invoice: paper always, PDF and other formats only with the recipient's consent.
until 31 December 2027 Issuers with a previous-year turnover of no more than €800,000 may continue to issue other types of invoice.
until 31 December 2027 An EDI process that does not already meet the requirements for an e-invoice may continue to be used.
from 1 January 2028 All transition periods have ended. Invoices between businesses established in Germany must then be issued as e-invoices, with the exceptions below.

Exceptions include small-amount invoices up to €250 gross and travel tickets. The details are set out in the BMF letters of 15 October 2024 and 15 October 2025.

Can an EDIFACT invoice (INVOIC) continue after 2027? In the BMF's view, it can, provided it meets the conditions for an agreed format: all the information required for VAT purposes must be extractable from the message correctly and completely into a format that complies with EN 16931. The BMF states explicitly that “EDI processes such as EDIFACT, for example” can continue to be used for e-invoices (our translation). Whether your specific process meets this depends on the content of your invoice message and your agreement with the partner.

Note: this page is not tax advice. For your case, please consult your tax adviser.

EDI, web EDI or e-invoice: the comparison

EDI Web EDI E-invoice
Covers all documents (order, despatch advice, invoice, schedules) all documents the portal offers the invoice only
Data entry automatic from the ERP system by hand in the portal automatic or via invoicing software
ERP integration yes no depends on the solution
Format set by the partner, e.g. EDIFACT, VDA not your concern EN 16931 (XRechnung, ZUGFeRD) or an agreed format
Legal obligation none, but required by the customer none for domestic B2B supplies in Germany, with transition periods
Typical case many documents, several partners few documents, one customer every business in Germany, from 2028 at the latest

If you already exchange EDI invoices with a partner, you usually do not need a second route for that partner. If you only need to send invoices in structured form and do not process orders or despatch advices automatically, an e-invoicing solution is enough and you do not necessarily need EDI.

What edi-service.eu covers

edi-service.eu is EDI software that runs on your own server and is set up by an AI. It does not include a web EDI portal for your partners, nor access to the Peppol network. The platform generates the invoice to your partner (INVOIC) from your ERP data and sends it via the agreed transmission method. What the fixed price covers is set out under Price. If you would like to know whether your case is a good fit, you can send an enquiry.

Frequently asked questions

Is an EDI invoice an e-invoice?

It can be. Under section 14 of the German VAT Act, issuer and recipient may agree on their own structured format, provided the required information can be extracted completely into a format that complies with EN 16931. The BMF names EDIFACT explicitly as an example. EDI processes that do not meet this are only permitted until the end of 2027.

Is web EDI enough for the e-invoicing mandate?

That depends on what the portal sends to the recipient. If it generates a structured invoice in a permitted format, that invoice meets the requirements. Check this with the portal operator and your tax adviser.

Do I need Peppol for e-invoicing in Germany?

No. The law does not prescribe a transmission method; according to the BMF, sending by email is sufficient, for example. Peppol is one route among several and is used mainly when partners want to be reachable through it.

What is the difference between XRechnung and ZUGFeRD?

An XRechnung is a pure XML file without a readable visual part. ZUGFeRD is a PDF with the invoice data embedded as XML. According to the BMF, both meet the requirements for an e-invoice, ZUGFeRD from version 2.0.1 and not in the MINIMUM and BASIC-WL profiles.

Do I have to introduce EDI because of e-invoicing?

No. The e-invoicing mandate only concerns invoices. EDI usually becomes necessary because a customer wants to exchange orders, despatch advices or delivery schedules electronically. What to do then is described on My customer requires EDI.

Sources

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