XRechnung vs ZUGFeRD Explained: Choosing the Right Format

Two Formats, One Standard: Understanding the E-Invoice Landscape

When businesses in Germany start exploring e-invoicing, they quickly encounter two format names: XRechnung and ZUGFeRD. Understanding the differences between these formats, and their relationship to the European standard EN 16931, is essential for making the right choice for your business.

The good news is that both formats are legally recognized, and both comply with the EN 16931 standard. The choice between them depends on your business needs, your trading partners, and your existing workflows.

The Foundation: EN 16931

Before diving into the formats, it is important to understand the standard they are both built on. EN 16931 is the European norm for electronic invoicing, established by the European Committee for Standardization (CEN). It defines:

• The semantic data model: What information an e-invoice must contain (seller, buyer, amounts, VAT, line items, payment details)
• The business rules: Validation rules ensuring the data is consistent and complete
• The syntax bindings: Two approved technical formats for encoding the data (UBL 2.1 and UN/CEFACT CII)

Both XRechnung and ZUGFeRD implement this standard, but they do so in different ways, each with distinct advantages.

XRechnung: The Pure Data Format

What Is XRechnung?

XRechnung is the national standard for structured e-invoices. It was originally developed for invoicing to federal and state government agencies (B2G) and is now a recognized format for B2B e-invoicing under the Wachstumschancengesetz.

XRechnung is a pure XML format. It contains only structured data with no visual representation. You cannot open an XRechnung file and see a nicely formatted invoice. Instead, you see raw XML code that looks like this (simplified):

<cbc:ID>INV-2025-001</cbc:ID>
<cbc:IssueDate>2025-01-15</cbc:IssueDate>
<cbc:TaxAmount>190.00</cbc:TaxAmount>

Key Characteristics

• Format: Pure XML (UBL 2.1 or UN/CEFACT CII)
• Visual representation: None (requires viewer software to display)
• File size: Very small (typically 10-50 KB)
• Machine readability: Excellent - 100% structured data
• Human readability: Requires specialized software or online viewer
• Validation: Strict validation rules (KoSIT validator available)
• Primary use: Government (B2G) and increasingly B2B

When to Choose XRechnung

• You invoice government agencies (mandatory)
• Your trading partners have automated processing systems
• You prioritize data accuracy and machine processing over visual display
• You want the smallest possible file sizes

ZUGFeRD: The Hybrid Approach

What Is ZUGFeRD?

ZUGFeRD (Zentraler User Guide des Forums elektronische Rechnung Deutschland) is a hybrid format that combines the best of both worlds: a human-readable PDF with an embedded XML data file. When you open a ZUGFeRD invoice, you see a normal-looking PDF invoice. But hidden inside the file is structured XML data that machines can extract and process automatically.

ZUGFeRD Profiles

ZUGFeRD 2.x comes in several profiles, each with different levels of data completeness:

• Minimum: Basic invoice data only. Not EN 16931-compliant.
• Basic WL: Extended basic data. Not EN 16931-compliant.
• Basic: Core invoice data with line items. Not EN 16931-compliant.
• EN 16931 (Comfort): Full compliance with the European standard. This is the profile required for the e-invoicing mandate.
• Extended: Additional data beyond the standard. EN 16931-compliant plus extra fields.
• XRechnung: ZUGFeRD with XRechnung data embedded. Fully compliant.

Key Characteristics

• Format: PDF/A-3 with embedded XML (UN/CEFACT CII)
• Visual representation: Full PDF invoice layout visible in any PDF reader
• File size: Larger than XRechnung (typically 100 KB to several MB)
• Machine readability: Excellent via the embedded XML data
• Human readability: Excellent - opens in any PDF viewer
• Backward compatibility: Can be processed by legacy systems that only read PDFs
• Primary use: B2B, especially during the transition period

When to Choose ZUGFeRD

• Your trading partners still rely on visual invoice review
• You need backward compatibility with PDF-based workflows
• You want a smooth transition from PDF to structured e-invoicing
• Your recipients include a mix of automated and manual processors

XRechnung vs ZUGFeRD: Direct Comparison

• Visual display: XRechnung (none, requires viewer) vs ZUGFeRD (built-in PDF)
• Data structure: Both fully structured XML
• EN 16931 compliance: Both compliant (ZUGFeRD only with Comfort profile or higher)
• File size: XRechnung (small) vs ZUGFeRD (larger due to PDF)
• Government acceptance: XRechnung (preferred for B2G) vs ZUGFeRD (accepted for B2B)
• Ease of transition: ZUGFeRD (easier, looks like PDF) vs XRechnung (requires viewer)
• Processing speed: Both equally fast for automated systems

The Role of Peppol in Format Delivery

Peppol is a delivery network, not a format. It can transmit both XRechnung and ZUGFeRD invoices. When you send an invoice via Peppol, the format used is typically UBL or CII (both EN 16931-compliant). The recipient's system then processes the data regardless of the original format.

This is one of the key advantages of using Peppol: you do not need to worry about format compatibility with each individual trading partner. The network handles the translation. Peppol Box leverages this capability to ensure your invoices always arrive in a format your recipients can process.

How Peppol Box Handles Both Formats

Peppol Box is format-agnostic. It receives and sends invoices in all EN 16931-compliant formats:

• Receive: XRechnung, ZUGFeRD 2.x (all compliant profiles), UBL, CII
• Display: All invoices are rendered in a human-readable format in your inbox
• Send: Create invoices and let Peppol Box handle the format automatically
• Accountant access: With Flexina Sync, your accountant automatically retrieves your invoices — free of charge
• Secure storage: Encrypted data hosted in Europe, GDPR-compliant

You do not need to become a format expert. Peppol Box handles the technical details so you can focus on your business.